1. Refining and chemical integration project
Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project Chemical Project
On the morning of February 11, machines roared at the construction site of the 40 million tons/year integrated refining and chemical project on Yushan Island. The construction of Zhoushan green petrochemical base with a total investment of 173 billion yuan is in full swing.
The first phase of Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project has also ushered in a new important node. The completion of the oil filling work of two tank trucks marks that Zhejiang Petrochemical The petrochemical atmospheric and vacuum distillation unit started its first oil feeding operation.
The atmospheric and vacuum device built by Sinopec Tenth Construction Co., Ltd. can convert the crude oil produced in the oil field into gasoline, diesel, kerosene, etc. through three processes. With the operation went smoothly, and the first step of oil refining was also successful.
Hengli 20 million tons/year refining and chemical integration project
Hengli Petrochemical’s refining and chemical integration project in Dalian includes a PX production capacity of 4.5 million tons/year. Qualified products were produced on March 24, 2019. The device has two PX production lines, and one set of 2.25 million tons/year is currently put into operation. Although the PX production line was first put into production with half of its capacity, it has now become the largest PX production company in China, accounting for 16.03% of the total domestic production capacity. Domestic supply has begun to increase significantly. Hengli Petrochemical itself has a 6.6 million tons/year PTA device, among which The initial PX production capacity was designed to meet its own PTA production needs. The produced PX directly entered the nearby PTA factory through pipelines. However, the company previously purchased a small amount of PX raw materials from local PX companies and most of them were imported. Therefore, the PX import volume will be It has been significantly reduced. It is only a matter of time before the second PX production line is put into operation in the future. Hengli Petrochemical can basically achieve zero external mining in the future. Due to the reduction in PX imports and the pressure on major PX exporting countries such as Japan, South Korea and India, it is normal for PX profits to be higher. Therefore, Foreign companies are more likely to offer profits and supply them to other domestic companies that need to import PX.
The commissioning of Hengli Petrochemical PX is just the beginning. This year’s new domestic PX production capacity will reach 8.85 million tons. If it is successfully put into production, China’s production capacity will increase by 63%. The future trend will be for domestic PX to gradually become self-sufficient, and PX imports will be significantly reduced.
Hengyi Brunei PMB Petrochemical Project
Hengyi Brunei PMB Petrochemical Project The project is a key project of my country’s “Belt and Road Initiative” and is Brunei’s largest foreign industrial investment to date. In the joint statement signed by China and Brunei on November 19, 2018, the two parties specifically mentioned that they would promote the safe and smooth cooperation of Hengyi Brunei’s Da Muara Island petrochemical project.
After comprehensive debugging, intermodal transportation and smooth operation, the Brunei project realized the full process of the factory and was put into full production on November 3, successfully producing gasoline, diesel, aviation kerosene, PX , benzene and other products, marking the first successful commissioning of the Brunei refining and chemical project. At present, the production and operation of the Brunei refining and chemical project is stable, all production products are qualified, and it has officially entered the commercial operation stage. It is expected to continue to increase the load to full production in a relatively short period of time.
The first phase of the Hengyi Brunei PMB petrochemical project has an investment of US$3.45 billion, with a crude oil processing capacity of 8 million tons, and the production of 1.5 million tons of xylene and 500,000 tons of benzene, as well as gasoline, kerosene, Diesel and other products. In the second phase, the crude oil processing capacity will be increased by 14 million tons, and 2 million tons of paraxylene, 1.5 million tons of ethylene and refined oil will be produced. The second phase project has now entered the plan demonstration stage.
The main investors of these large refining and chemical projects were originally leading companies and leaders in the chemical fiber and textile industries in the downstream petrochemical processing field. In recent years, the country has opened up the refining and ethylene fields to private enterprises, making them decide Reverse development from the downstream processing field to the upstream raw material production field to improve the industrial chain, fill in the shortcomings, reduce costs, improve core competitiveness, further consolidate the industry position, and achieve greater development. The successive completion and commissioning of these large refining and chemical projects will make these refining and chemical “upstarts” and industry giants even more powerful. It will not only bring great changes to the market structure and competition situation of my country’s refining and ethylene, but will also affect the aromatics industry in which they are located. , polyester, synthetic fiber and its processing industry will have a profound impact on the future pattern and development.
2. The value-added tax was reduced to 13%.
After the closing of the second session of the 13th National People’s Congress on the morning of March 15, the Premier of the State Council Li Keqiang said that the value-added tax will be reduced on April 1, and the social insurance premium rate will be reduced on May 1, and will be fully implemented; the financing costs of small and micro enterprises will be reduced by another 1 percentage point based on 2018.
After reducing the value-added tax, the production cost of the PTA factory has been reduced. However, since the PTA industry chain ranges from upstream crude oil to terminal clothing, 3% of the profits are distributed to various industries. After chaining products, its influence will be greatly reduced. Therefore, only companies with relatively complete industrial chains can fully enjoy the benefits of tax cuts.
3. 3.21 Xiangshui Incident
The 3.21 Xiangshui explosion killed 78 people. A total of 566 injured people were hospitalized in Yancheng, including 13 critically injured and 66 seriously ill.
The main production areas of disperse dyes in China are concentrated in Zhejiang, Jiangsu and Shandong. This safety incident led to the suspension of production in Jiangsu Subei, production restrictions in Shandong, and production reductions in Zhejiang; only the disperse dye companies in the Subei Chemical Industry Park suspended production. , resulting in a reduction in production capacity of about 150,000 tons/year; Shandong disperse dye production companies were delayed in resuming work and limited production capacity. Disperse dye companies in Shangyu, Shaoxing, and Xiaoshan in Zhejiang also took the initiative to reduce production capacity due to safety inspections. And triggered a wave of rising prices for dyes in the market.
4. Spending nearly US$70 billion, the world’s largest oil company acquired the fourth-largest refining giant
On March 28, Saudi Aramco issued an announcement It said that after several months of negotiations, it acquired 70% of the equity of Saudi petrochemical giant Saudi Basic Industries Corporation (SABIC), with a transaction size of US$69.1 billion. This stake is currently held by the Saudi Public Investment Fund (PIF), a sovereign wealth fund. By 2030, they plan to increase the average daily refining capacity from 4.9 million barrels to 8-10 million barrels.
5. Xinfengming 5G production workshop
On April 24, in the filament production workshop of Xinfengming Group based on the 5G network, the handling robot passed instructions in an orderly manner Move filament cakes in an orderly manner. It is understood that through the use of 5G, the transmission rate is accelerated and the robot’s handling efficiency can be increased by more than 3%.
Currently, Xinfengming Group has achieved full 5G network coverage and has been applied in many fields such as mobile office, video communication, and data collection. In addition, Xinfengming has also built an industrial Internet platform that integrates real-time data, big data, assisted decision-making and industrial APP.
As the first 5G+ industrial Internet application launch in Jiaxing, this once again proves Xinfengming’s strength in the polyester filament manufacturing industry. The company stated that in the future, it will keep up with the trend of the times, continue to reform and innovate to promote the development process, drive the chemical fiber industry to high-quality development in green, low-carbon, digital, intelligent and flexible aspects, and contribute to the progress of the chemical fiber industry.
6. Sino-US trade war
12:00 noon on May 10, 2019, United States Officially issued a statement to increase tariffs on China’s US$200 billion in exports of US goods from 10% to 25%. Involving six major categories of commodities including mechanical and electrical, light industry, textiles and clothing, resources and chemicals, agricultural products, and pharmaceuticals; it will take effect on September 24.
The textile and apparel industry is a labor-intensive industry. In recent years, China’s demographic dividend has gradually disappeared, and the textile and apparel industry has transferred to Southeast Asian countries such as Vietnam. Although trade frictions have escalated and the United States has increased tariffs to increase China’s costs, the U.S. textile and apparel industry is less likely to return production and manufacturing due to high labor costs amid severe shrinkage. At this time, China’s loss will be the transfer of U.S. orders. The Sino-US trade friction is undoubtedly a huge challenge to the textile and apparel industry.
7. PTA over-the-counter options liquidation event
In July, an institutional client sold a large number of PTA call options through an affiliated enterprise. Since PTA futures fell on July 1 Japan and July 2nd saw the daily limit rise for two consecutive days. In the end, the customer’s position was liquidated and liquidated. At the same time, the customer’s account liquidated the position and caused huge losses to the subsidiaries of the futures company.
When the futures company pursued compensation, its relevant bank accounts were frozen, and the credit extension of shadow companies under the company’s name was tightened and funds were tight…
The polyester factory delivered PTA contract goods but failed to deliver the goods after paying the price, causing a substantial breach of contract. The funds involved (polyester factory and some PTA traders) are said to be close to 100 million, and the boss behind the scenes has already Lost contact.
8. Saudi crude oil explosion
September 14, Beijing time At around 8 a.m., two facilities of Saudi Aramco were attacked by drones, resulting in a reduction of 5.7 million barrels of Saudi crude oil supply per day, accounting for approximately 50% of Saudi oil production and equivalent to the global daily oil supply. 5%.
External evaluations said that this incident was the most tragic supply accident in the history of international crude oil, and its severity exceeded that of the 1990 Gulf War and the 1979 Iranian Islamic Revolution. Others compared it to the financial crisis eleven years ago and called it the “Lehman Weekend” in the history of crude oil.
9. Ethylene glycol Yangtze River International Cargo Rights Dispute
9 On March 26, Yangtze River International was sued by Xinxing Jihua International Trading Co., Ltd. (hereinafter referred to as Xinxing Jihua) for compensation due to a dispute over delivery of goods.
When Xinxing Jihua requested to take delivery of the goods (110,600 tons of ethylene glycol, worth 481 million yuan), Yangtze River International refused to agree to its request to take delivery of the goods, causing Xinxing Jihua’s E2 Alcohol cannot be picked up. Xinxing Jihua requested the court to order Yangtze International to return 110,600 tons of ethylene glycol; if Yangtze International is unable to return it, it requested the court to order it to compensate for the corresponding losses. The Wuhan Maritime Court ruled that Yangtze River International’s property worth 481 million yuan should be seized, detained, and frozen.
It is worth mentioning that Yangtze International also has the risk of potential delivery disputes. The listed company revealed that since September, Yangtze International has been subject to 10 units bringing forged documents to pick up goods. Since Yangtze River International is the main source of Bonded Technology’s performance, its involvement in disputes has also caused outsiders to worry about the performance of listed companies. </p
