Benefit from the decline in oil prices, the cost of the chemical industry will also decline

Benefit from the decline in oil prices, the cost of the chemical industry will also decline

As a basic energy source and a chemical raw material, crude oil's price drop directly alleviates the cost pressures in the downstream petrochemical industry. Refineries such as Sinopec benefit most. Petrochemicals and other integrated petrochemicals will benefit as a whole, and plastics processing companies such as Fosugufen, Zijiang Enterprises, and Zhongda will bring good opportunities for recovery; a number of advantageous leading enterprises in the sub-industries such as organic chemicals, rubber, chemical fiber, and pesticides will suffer from lower costs. And gradually get out of the bottom.
GF Securities, Cao Xin analysis, after the decline in crude oil prices, whether the chemical industry benefit depends on whether the petrochemical products fell simultaneously. On the other hand, if prices of chemical products in the international market are reduced due to the drop in crude oil prices, prices of domestic petrochemical export products will lose price advantages. Therefore, the price of petrochemical products is the key to the overall good.
Tianhua Investment Jia Huawei believes that the drop in crude oil pressure will ease the pressure on chemical products, and the gross profit margin is expected to rebound. With the increase in the price of some chemical products and the stabilization of the fall in oil prices, the growth rate of the chemical industry's revenue growth below the cost increase is expected to change in 2007, and the overall industry benefit will increase. The drop in the price of crude oil will reduce the production cost of synthetic rubber and pull down the price of natural rubber. The plastic products company may pay attention to the Guofeng Plastics Industry and the China National Administration.
Changjiang Securities Fu Yunfeng believes that the drop in oil prices will reduce the cost of the fertilizer industry, but the price of natural gas for raw materials will rise. Therefore, the overall price of the fertilizer industry will maintain a balance.
In addition, the chemical fiber industry has stabilized due to falling oil prices, and the market is picking up. In particular, the prices of viscose fiber and other products have shown good growth, and the chemical fiber industry is recovering. The performance of the chemical fiber segment will increase significantly. In this sector, companies with strong technological innovation and development capabilities such as Xinxiang Chemical Fiber, Shandong Hailong, and Jiangnan High Fibre Co., Ltd. will seek to reposition the stock price. Yesterday, the individual stocks in the chemical fiber industry were fully strengthened.

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