Recently, I investigated Wanhua Chemical and communicated with the company on its main business. Comment: MDI prices continue to rise, with aggregate MDI hitting a new high this year. 1. MDI prices continue to rise, with aggregate MDI hitting a new high during the year. The company’s MDI sales volume in 2016 is expected to be 1.2 million tons. In terms of price, the average price of polymerized MDI in East China from January to August was 11,789 yuan/ton, and the average price of pure MDI was 15,976 yuan/ton. From July to August, aggregate MDI and pure MDI increased by 16.4% and 0.6% compared with the end of June. So far, they have increased by 50.5% and 9.7% respectively compared with the beginning of the year. On the one hand, the price increase in August is due to the reduction of the burden on manufacturers in strictly controlled areas brought by the G20. Another factor is that the load of Shanghai Lianheng’s equipment will be reduced to a certain extent in the next few months, while Shanghai BASF and Shanghai Huntsman both MDI mother liquor is obtained from this company, so the supply is also expected to be reduced to some extent. September to October is the peak season for MDI demand. Wanhua announced on August 18 that starting from September 15, or as permitted by the contract, it will increase the price of MDI in North America and the Caribbean by US$132/ton; On August 26, the company announced the listing price of aggregated MDI in September, which was increased by 1,700 yuan/ton from the previous month to 14,500 yuan/ton, a new high for the year. 2. Petrochemical plants are operating at full capacity and making good profits.
The company’s PDH device is currently operating at full capacity. 1) Propylene: In August, the price of propylene in Shandong rose from 6,100 yuan/ton to about 7,100 yuan/ton, a cumulative increase of 1,000 yuan/ton, an increase of 16.4%; the price increase was mainly due to the bias in market supply caused by mainstream manufacturers shutting down for maintenance. tight. Most of the equipment in Shandong is undergoing maintenance for one month. While there is a supply gap, there are also many equipment maintenance in the Northeast. Liaoyang Petrochemical, Daqing Zhonglan, Shenyang Waxing and other equipment are all under maintenance, and Daqing Petrochemical propylene has also been converted to self-use. Maintenance will bring short-term price increases. As the refined oil market gradually improves, refinery maintenance will gradually decrease in the later period, and propylene supply is also expected to increase. However, the probability of returning to 5,000 yuan/ton at the beginning of the year is not high, and it is expected to maintain 6,000 yuan/ton. Above, the gross profit margin remains above 20%; 2) Propylene oxide: The price at the end of August was 9,550 yuan/ton, down 350 yuan/ton from the beginning of the month, but the average price from July to August was still 1,187 yuan/ton higher than the second quarter, an increase of 14%. It is estimated that the gross profit margin of the current PO price is above 40%, indicating good profitability. 3. The new materials market is advancing steadily. The company’s six major business divisions are ADI Division, Special Amine Division, Beijing Wanhua Modified MDI Division, Polyether Division, New Materials Division and Surface Materials Division. It has a TPU production capacity of 120,000 tons and modified MDI. 90,000 tons, HDI monomer 30,000 tons, polyether 300,000 tons, and water-based coating resin 150,000 tons. It achieved a net profit of 300 million yuan in 2015 and is expected to maintain a growth rate of 60% this year. The 200,000 tons of PC raised in this private placement will provide continued growth for Wanhua’s new materials business in 2017-2018.
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