Revival craze swept the world in 2010 A New Aspect of the recovery of chemical coatings.

<p> in 2008 under the financial crisis spread, the premise of making industrial restructuring of the enterprises have started the current revival craze. .Operating rate based on demand-driven increase downstream, upstream oil and gas prices up, low profitability of bulk chemicals in 2010, chemicals prices upward probability is great. . ≪/P > <P> <P> <p> 2010 chemicals prices will generally upward, but the upstream end of the 2007-2008 magnitude weaker than the beginning of the end of the great cycle, but may be a small uplink cycle. .Investment strategy, due to the gradual recovery of demand (of course, different elasticity of demand of different chemicals), little new capacity greater price elasticity of sub-sectors. .</ P> <p> to see more investment from the industry structure, based on changes in supply and demand boom of the excess return to get the key, to buy chemical stocks is to buy a good supply base and economic upward trend. .The chemical industry chain length, sub-sectors and more economic trends are not synchronized, or even the opposite. .Close to the downstream products are relatively early period, close to the upper reaches of the bulk chemicals ("three acids and two bases" etc.) is relatively late period. .</ P> <p> recovery period from the perspective of profitability, we will be the industry into three categories: </ p> <p> the first category, the strong revival in profitability, gross profit to a record high stage, including: demand can still be . (downstream of the textile, automotive, appliance, etc.), gross margins driven down the cost of recovery, including tires, printing and dyeing auxiliary, civil explosive, polyether, polyester yarn, DMF, etc.; sub-industry itself was ascending into the supply and demand cycle stage, such as viscose .staple. .</ P> <p> the second category, a recovery in profits, but still lower level. .These industries are mainly demand recovers, the supply pressure is not sub-industries, including MDI (slightly-than-expected demand), TDI, spandex, dyes. .Another result of the new capacity is not effective silicone release, the price has also been upward. .</ P> <p> third category, profitability recovers, industry continues to break the edge. .These industries are mainly bulk chemicals, its profitability is still hovering around break even, or at the profit level, such as PVC, soda ash, ammonium nitrate, etc.; not a significant recovery in profitability is mainly due to supply pressure, including the expansion of domestic production and imports .impact. .</ P>.