Chemical market first after weak quarter is expected to rebound

Xinhua 08 SHANGHAI, July 6 (Reporter Chen Aiping) commodity data provider business community on the 6th January to June 2012, China's commodity economic data report "shows that the first half of this year, domestic chemical market is strong and then weak step oscillation downstream of the situation, is expected to start the third quarter, the chemical products will be the overall rally.

The data show that the chemical products, ups and downs obvious differentiation. 68 chemical products in the monitoring of the business community, only 25% of the varieties of rose, or the largest pure MDI, semi-annual increase of 35.22%; fell 51 varieties, the largest decline in hydrochloric acid semi-annual decline of -40%.

Zhang Ming, a senior analyst of the business community, believe that the first half of the first strong domestic chemical market as a whole is weak, and the international oil price shocks are not unrelated. Influenced by overseas markets since the second quarter, the downstream products of benzene, acetone, toluene, xylene, phenol and other products because of its unfavorable cost support, the first half of the overall show a Yindie trend.

Market downstream of the industrial chain, the demand gradually atrophy, which restricts the normal operation of most industrial chain. For example, due to the refrigerant, fluorine rubber, and the fire extinguishing agent industry demand for light, fluorite - hydrofluoric acid - fluorine chemical industrial chain in the first half of lackluster.

"At the same time the cost of transmission effects are obvious. Subject to a sharp rise in mining costs, high-grade phosphate rock prices are climbing in the first half." Zhang analysts said.

Zhang believes that the encounter resist seeking raw material costs passed to the downstream process, the majority of chemical products. With signs of a sharp rebound in international crude oil in early July, expected to be the beginning of the third quarter, the domestic chemical market will profit a positive stimulus to exports and the traditional peak season and the overall rebound.