“This year the overall profitability of the coal chemical industry is also good

“This year the overall profitability of the coal chemical industry is also good, although prices have great impact on the cost of coal chemical products, but prices also rose sharply.” LUZHENG futures researcher Pu Chengzhu said. A central China coal chemical industry sources told reporters that this year the domestic coal chemical industry operating situation is generally optimistic, but except for fertilizer production.

“Domestic urea industry overall overcapacity, prices continue to decline, some of the old urea enterprises because of technical problems, the production cost is relatively high, more serious loss. However, this year the urea market better than last year.” Pu Chengzhu said.

The other coal chemical products of methanol has become the focus of the market. “After entering the fourth quarter, the domestic methanol market continued good news, methanol imports to Hong Kong to fall, demand continued stable olefin. Changzhou food and Jiangsu sailboat two sets of olefin plant put into operation before the demand, the overall market is facing low inventory, supply shortage situation.” CITIC futures researcher Shen Liping told the methanol futures Daily reporter said commodities rose collective devaluation, increased transportation costs and crude oil prices strong, are constantly pushing up the price of methanol.

It is worth noting that, in December 23rd, the Tariff Commission of the State Council issued the “notice” on the 2017 tariff adjustment plan, decided to cancel the export tariffs on fertilizer and fertilizer, and appropriate to reduce the three yuan fertilizer export tariffs. The industry believes that in 2016 China’s exports of urea fell to the freezing point in recent years, the abolition of tariffs for domestic market and export bring some support, but in the long run, it is difficult to change the overcapacity and loss of business situation.

In this regard, the industry calls for improvement of coal chemical industry to accelerate the urea futures, futures market, to help companies use futures tools service production and operation. As the energy and chemical species, if urea and methanol futures listed, among other varieties will have more opportunities for arbitrage.