Domestic oil prices still have room to rise, petrochemical industry is waiting for a large-scale expansion

On September 25th, British Brent crude oil prices reached a maximum of 81.48 US dollars / barrel, a new high since November 2014; at the same time, the US WTI crude oil prices also rose sharply to more than 72 US dollars / barrel.

With the sharp rise in international oil prices, Sinopec (7.070, 0.19, 2.76%) industry also fluctuated - domestic refined oil has risen for the third time, will rise for the fourth time on September 30; and the chemical industry is expanding On the one hand, multinational giants BASF and Exxon Mobil announced that they will invest tens of billions of dollars in Guangdong to build large petrochemical bases. On the other hand, Sinopec and other oil central enterprises have announced that they will establish new petrochemical bases in coastal areas such as Guangdong.

"With the rise of international oil prices, oil central enterprises, multinational oil giants and private enterprises will increase their investment in China. After all, this is the most important manufacturing base in the world and the most desirable market for these enterprises." .

Crude oil rises and benefits the PTA market

On September 25, Longzhong News, a petroleum professional consulting agency, said that due to rising international oil prices, domestic refined oil prices will rise again. It is expected that a new round of refined oil price adjustment window will start at 24 o'clock on September 30.

This is already the domestic price of refined oil in the three consecutive months. On the latest September 18, the wholesale price of Shanghai 95# gasoline has reached 9350 yuan / ton; once the oil product price rises again at 0:00 on October 1 The price will reach 9,450 yuan / ton.

"For the price increase of refined oil products, the domestic market expressed understanding that after all, the international oil price has exceeded 80 US dollars / barrel," said Jin Zhengji, a gold analyst of Jinlian Chuangchuang. "On September 23, OPEC+ collectively said to Trump. 'And on September 22, armed elements attacked the Iranian military parade was the main reason for catalyzing the rise in oil prices."

“In the future, refining sales revenue will continue to increase, refining profit will be good, and refinery processing will be more enthusiasm. The refining rate is expected to continue to rise, and the supply of resources still has room to rise”, Jin Lianchuang said, “so in some areas, refined oil The wholesale price has risen to the maximum price, and the refining is to reduce inventory. In the context of high sales enthusiasm, the future wholesale price may be more cautious."

The above-mentioned oil central enterprises experts believe that before the end of Trump’s sanctions against Iran, international oil prices and domestic refined oil prices will remain high, and even international oil prices may reach $100/barrel.

In addition to the rising prices of crude oil and refined oil, the price of chemical products has also risen sharply, and even rises far beyond the price of oil products. For example, PTA, its price has risen more than 50% compared with June, and investors who participated in PTA futures have got 10 times of profits.

According to the 21st Century Business Herald reporter, since June 20th, the PTA futures market has entered an upward trend, from the initial 5512 yuan / ton to August 20, 8062 yuan / ton, and then quickly fell, currently still at 7100 yuan / ton or so.

Chuangyuan Futures Investor Li Meng said that from 2012 to mid-2017, due to the misunderstanding of PX and PTA industries by some residents in Xiamen and Ningbo, the domestic PTA industry entered a low tide. However, as the downstream domestic chemical fiber, textile and other industries are still developing rapidly, which makes the upstream PTA industry develop rapidly after 2017. "With the development of the PTA industry, the rise in futures prices is understandable, and the short-term decline is normal." Many investors including Li Meng and others believe that the future prices of crude oil, PTA and other futures will rise. space.

Large expansion in the petrochemical industry

With the sharp rise in international oil prices, the Chinese petrochemical industry has begun to enter a new large-scale expansion, especially in the refining and chemical industry, because China is the most important manufacturing base in the world and the most important potential market for chemical companies.

In July, multinational chemical giant BASF announced that it will invest 10 billion US dollars to build an integrated production base in Guangdong, which makes BASF the first foreign-invested enterprise to build and operate an integrated base for steam cracker installations in China. The entire construction project is expected to be completed in 2030, and the first batch of installations will be completed by 2026 at the latest.

Subsequently, Exxon Mobil also announced that it will invest 10 billion US dollars to establish a petrochemical base in Guangdong.

"China has a huge manufacturing base and a vast market. China has further expanded its opening to the outside world, which has made it possible for multinational companies to develop in China. BASF and Exxon Mobil are just the first movers," said the oil central enterprise experts.

In fact, more Chinese refining and chemical companies are actively planning and gaining a share in the Chinese market.

In October this year, the private enterprise giant Hengli Petrochemical will be completed and put into operation in Dalian's refining and chemical base; Zhejiang Petrochemical's first refinery base in Zhoushan will be completed and put into operation in the year, and the second refining and chemical base will enter the construction phase, which will be 2020. It is put into production every year.

It is understood that the global PTA production is concentrated in Asia, North and South America and Europe, of which Asia has the largest production capacity, accounting for 86.78% of the global PTA capacity. In the past ten years, almost all new PTA devices in the world have been in Asia, and most of the new devices in Asia are concentrated in China. China is the center of PTA production and consumption in the world, accounting for 52.88% of the global PTA capacity, and the global PTA has the right to speak. In the hands of Chinese companies.

Hengli Petrochemical and Zhejiang Petrochemical are among the most important PTA companies in the world. The total production capacity of Hengli Petrochemical PTA has increased to 11.6 million tons/year, ranking first in the world in terms of monomer production capacity and overall scale. . At the same time, the company's single-ton processing costs are among the lowest in the industry and have strong market competitiveness.

Therefore, powerful Chinese companies are hoping to increase investment in order to obtain more development opportunities.

On September 25, Guanghui Group announced that it has cooperated with Evergrande Group, which will throw 14.49 billion yuan into Guanghui Group and become the second largest shareholder.

It is understood that Guanghui Group has Guanghui Energy (5.030, 0.09, 1.82%) (600256.SH), Guanghui Automobile (6.530, 0.05, 0.77%) (600297.SH) and Guanghui Logistics (4.920, 0.45, 10.07%) (600603.SH) and other three listed companies and other enterprises, of which Guanghui Energy has invested heavily in offshore LNG projects since 2015, so Guanghui Group cooperates with Evergrande Group in addition to strategy. In addition to investing, raising money is also an important reason.

"The rise in international oil prices has become a new engine in the petrochemical industry. Expansion is inevitable, so raising money and reinvesting is a must." The above-mentioned oil central enterprises experts admit, "This time, Guanghui Energy is at the LNG receiving station in Qidong, Jiangsu. This project is nearing completion and will have huge profits once it is put into production."

ATEX Approved Coriolis Mass Flow Meter

Sealand is a trustworthy manufacturer of Mass Flow Meter Coriolis, Mass Flowmeter Coriolis, Flow Meter Coriolis and Meter Coriolis, ATEX, CE & IECEx approved.

The flow meter model covers from DN03 to DN150, and bigger models are being developed. Main specification is as follows.

Mass Flow Meter Coriolis, Mass Flowmeter Coriolis, Flow Meter Coriolis, Meter Coriolis

Zhejiang Sealand Technology Co., Ltd. , https://www.sealandflowmeters.com