The chemical industry is sluggish. Several listed companies have stopped producing "hibernation"

The superimposed effects of monetary tightening policies and the spread of the European debt crisis have had a significant negative impact on the operating conditions of domestic companies. Due to the decrease in demand and the drop in prices, many listed companies have chosen to stop production or cut production to “winter”. Chemical companies with higher economic conditions at the beginning of the year have become one of the industries most affected by the impact.

Multiple unfavorable factors squeezed Since the beginning of this year, due to the tightening of the domestic environment, the increase in labor costs and raw material prices, and the adjustment of interest rate exchange rates, many businesses have faced an apparent increase in operating pressure. In the recent period, the European sovereign debt crisis continued to deteriorate and the driving force behind the recovery of the world economy has weakened significantly. As a result, commodity prices have fallen sharply, and some listed companies have fallen into the dilemma of more production and more losses. According to the statistics of the China Securities Journal, since September, 10 companies have issued notices of discontinued production, most of which are subject to cost pressures, but have no choice but to choose “to stop business for the winter”.

* ST titanium white on August 24 issued a maintenance notice for the shutdown of titanium dioxide production line. At that time, it was estimated that the maintenance time was 40 days, and the maintenance was completed at the end of September. However, on September 28, the company announced that maintenance work will be postponed until mid-October.

In September, the domestic titanium dioxide market prices continued to decline, market demand decreased, and titanium dioxide production companies increased their inventories. Taking *ST titanium dioxide as an example, the sales price of the company's R215 gold red titanium dioxide products decreased by an average of 4,000 yuan per ton in September, and gross sales margins have decreased substantially.

Guangji Pharmaceutical announced on November 23 that the company had implemented a long-term shutdown of its fermentation plant for its riboflavin production line since November 20; after the shutdown, its subsidiary, Guangji Pharmaceutical (Mengzhou) Co., Ltd., produced feed grades. Riboflavin is the main product, and the company's headquarters mainly produces food grade and pharmaceutical grade riboflavin.

In fact, this was not the first time that Guangji Pharmaceutical stopped production. In August 2010, the production line of the riboflavin product line was stopped for maintenance for one month, and in July 2011, Guangji Mengzhou's riboflavin production line was discontinued and overhauled. month. The person in charge of Guangji Pharmaceutical said in an interview with the media earlier that the current product exports accounted for a relatively large proportion, the industry is not booming, and the main reason for the suspension of production was the weak demand.

In addition to the weak demand and increased losses, some companies have caused large-scale production suspension due to unexpected factors such as environmental protection and energy conservation. From November 14th, 2011, some media reported that Tianma Elaboration's production base in Suzhou emitted pungent gas, causing reports from surrounding residents, and Tianma Refinement was ordered to suspend production indefinitely.

On November 24, Tianma Jinghua issued a clarification announcement stating that the above rumors have deviated from the facts. Tianma Refinement stated that after the mid-October, 2011, the subordinate Tianma Refined Shaoguan Plant implemented the upgrade of the tail gas absorption device of the wastewater treatment system according to the established plan. Due to the transformation, the production workshop also conducted a one-month maintenance shutdown. .

Coincidentally, Tianyuan Group announced a few days ago that its three holding subsidiaries and one shareholding subsidiary received the notice of the Zhaotong Municipal Government of Yunnan Province on starting the emergency energy-saving and consumption-reduction control plan on the 21st and will stop the production inspection and maintenance since receiving the notice. The time to resume power transmission and resume production has not yet been determined. The above four subsidiaries are all calcium carbide raw material production enterprises. Tianyuan Group stated that the suspension of production of subsidiaries will lead to the company increasing the purchase of calcium carbide in Northwestern China, increasing the cost and expenses, and will have a certain impact on the 2011 operating results. Tianyuan Group has been plagued by rising costs this year, and this time the suspension of production of subsidiaries will increase the situation.

The chemical industry dilemma appears in the discontinued announcement issued since September. Chemical listed companies account for a relatively large number of companies, including Jiangshan, STMicroelectronics, Yantai Wanhua, Aoyang Technology, Yunmei Energy, Tianyuan Group and Tianmajing. Change. Although the reasons for discontinued production vary, including improvements in production capacity, technical maintenance, energy conservation and environmental protection, and other aspects, but so many chemical companies focused on production cuts, to a certain extent, to explain the slump in the chemical industry since September and the decline in product prices Increasingly prominent.

Huang Libin, deputy director of the Ministry of Industry and Information Technology, said that the operation of the chemical industry has undergone major changes since the beginning of this year. In the first half of the year, due to price increases, the profit level was generally higher, and with the sharp decline in demand, September and October chemicals The industry boom has shown a significant decline.

From the perspective of downstream demand, the growth rate of major related industries such as automobiles, textiles, plastics, and flat glass has slowed down significantly, and the demand for petrochemical products has slowed down. At the same time, pressures for energy conservation and emission reduction have risen. The cost of capital has been rising, and the supply of coal, electricity, and transportation has been biased. Tightly, the increasing dependence of foreign resources on resources has adversely affected the operation of the chemical industry, and the growth rate of the chemical industry has slowed down.

The polysilicon industry, once highly prosperous, is also facing an oversupply situation. According to a survey conducted by Shanghai Nonferrous Metals Co., Ltd. in early November, 70% of the enterprises in the country's trichlorohydrogen-silicon production enterprises stopped production and maintenance; 25% of production enterprises reduced their production, including The output reached the original 40%-60%; only 5% of the enterprises are still in normal production. Although the company discontinued production of large quantities of trichlorosilane, due to the high inventory level of each company and the weak demand of downstream polysilicon companies, the price of trichlorosilane has hardly picked up recently.

Listed company announcements have also revealed their clues. Aoyang Technology announced on November 22 that the company's holding subsidiary, Suining Aoyang Science and Technology Co., Ltd., has completed exhaust gas recycling project commissioning and equipment maintenance and maintenance, but the demand for viscose is still sluggish, and the short-term viscose price is 11 months. Since it continued to fall, the operating environment of the industry remained severe, and the company decided to postpone the resumption of production in Suining and Aoyang.

Discontinued company performance concerns Suspended production and reduced production, which means that the company's production and business stagnation, although it helps to digest inventory and reduce losses, but under the pressure of financial costs, staff wages, many companies will suffer a loss in annual results. Among the listed companies that have issued the discontinued announcement since September, *ST titanium dioxide and Aoyang Technology are expected to lose money for the entire year of 2011.

In the third quarterly report, Aoyang Technology expects to have a net profit loss of 47 million yuan to 490 million yuan in 2011. The cause of the huge losses is the continuous sluggish market situation of viscose staple fiber and the low sales price; on the other hand, the price of raw materials remains high despite the fact that the price of products is difficult to improve.

*The difficulty of ST titanium dioxide is even more complicated. Not only the sales price of titanium dioxide has fallen sharply, but raw materials such as ** and titanium ore that were purchased in the previous period from July to August have suffered losses due to falling prices. At the same time, inspection costs and administrative expenses have increased during the shutdown period. This further exacerbated the burden on companies. * ST titanium dioxide is expected to net profit loss for 2011 will reach 98 million yuan - 93 million yuan.

Judging from the disclosed results of the three quarterly reports, the net profit of Tianyuan Group and Yunmei Energy was 80.2963 million yuan and 13.03056 million yuan respectively, which was a decrease of 4.85% and 18.89% year-on-year respectively. In the semi-annual report, Tianyuan Group stated that due to the increase in the purchase prices of major raw materials and energy for external purchases of calcium carbide, coal, and electricity, the cost of main operations in the first half of the year increased by 28.23% year-on-year. With the suspension of production of subsidiaries and the increase in the amount of calcium carbide purchases, Tianyuan Group's annual operating results will be variable.

Overall, the year-on-year growth of listed companies’ performance in the first three quarters of this year has continued to shrink, and non-financial companies have seen negative growth in the third quarter even in the third quarter, indicating that business pressure is gradually increasing. The recent suspension of production announcements indicates that the impact of factors such as the increase in the cost of raw materials and the fall in product prices, and the emergence of products, are showing up in some areas and companies.



Others Stamping Parts

Compression Springs ,Stampings,Extension Springs Co., Ltd. , http://www.ns-springs.com