The basic chemical products ushered in the boom period

1-10 month total fixed asset investment grew 8.30%, the chemical industry fixed investment fell by 3.30%, far lower than the industry growth rate of fixed asset investment, but year-on-year decline narrowed, in the production process of digestion period.

The supply side capacity, continue to deepen the reform of clearing the inventory cycle to restart the price rise, the devaluation of the renminbi under chemical products under the background of internal and external demand to pick up, the OPEC agreement under the crude oil prices continue to rise, on the effect of many factors, the chemical industry profitability improved significantly, 1-10 months year-on-year growth of 18.30%. The chemical industry is a new round of inventory cycle start, PPI chemicals continue to rise to date; domestic real estate in the future although there is a downward trend, but the infrastructure and vehicles to maintain steady growth, domestic demand is not too bad; the inventory cycle bottomed out to pick up in demand overseas, so the whole chemical industry, the first half of next year can continue to maintain profitability.

Oil prices due to rising production agreement, interim shocks, the long-term upward

In the chemical industry by its own cycle. At the same time, is also affected by external shocks, the oil price is the main factor. Since 2016, the international crude oil prices first dip rebound after September, the average price of $44.81 a barrel, with a OPEC production agreement, short-term oil prices keep rising trend, at the same time, prices bring us shale oil manufacturers resumption of production and opening increased number of U.S. crude oil rig, may make the international oil price shock period in the middle do not rule out, is likely to fall. In the long term, as the international crude oil supply reduction, steadily rising demand, prices rise.