China is preparing to build new LNG import facilities, as well as expanding existing LNG terminals in the Dawan area of Guangdong, Hong Kong and Macao.

The region includes Hong Kong, Macao and nine other cities in Guangdong Province. The government hopes to turn it into an economic center.

China is the second largest importer of liquefied natural gas in the world. In the process of implementing the clean air strategy, China has continued to promote the import of refrigerated fuels and set a new record.

China imported 53.7 million tons of liquefied natural gas in 2018, an increase of nearly 38% compared with 2017, when China overtook South Korea as the world’s second largest importer of liquefied natural gas.

Qatar’s oil and petroleum service companies Schlumberger and Beckhughes signed a preliminary agreement worth more than 9 billion Qatar rials ($2.47 billion) to boost the development of the local energy industry, Reuters reported in Doha.

Qatar, the world’s largest exporter of liquefied natural gas, is facing trade boycotts from some Arab countries in the hope of reducing its dependence on imports and increasing domestic production.

“As part of our national obligation to develop Qatar’s industry and promote self-reliance, we believe it is necessary to localize many of the ancillary industries in the energy industry,” Qatar Oil Chief Executive Saad al-Kaabi said in signing memorandums of understanding with Schlumberger and Beckhughes.

Kaabi said the initial agreement would involve investment in production facilities, training and development. McDermott, another oil service company, signed a joint venture agreement with Naqilat to build offshore platforms for offshore and onshore buildings without giving any price.

Qatar expects to save about 9 billion rials a year through import substitution after the establishment of the local energy industry, but Kaabi did not give a target date.

Qatar’s goal is to increase its annual production of liquefied natural gas by 43% by fiscal year 2023-2024, from 77 million tons per year now to 110 million tons per year.

Braskem Idesa, a Mexican polyethylene producer, said on Friday that it was promoting a dedicated ethane import terminal and other projects to address the region’s long-standing shortage of raw materials.

The move comes as state-owned Mexican National Petroleum Corporation (Pemex) continues to tackle production and exploitation problems, which have led to insufficient supply of Braskem Idesa and reduced production at its factories.

“The lack of ethane in Mexico’s petrochemical industry has prevented the immediate solution to the shortage in terms of production.” Cleantho de Paiva Leite Filho, Director of Business Development, said. “So, what can you do in the short term? For example, build or extend the import terminal.”

Leite also mentioned more long-term solutions centered on Mexico’s existing resources, but said these options, such as upstream investment and upgrading of existing gas processing infrastructure, would take longer and could bring higher costs.

Leite said Pemex would be a key player in any future choice, adding that the state-owned energy producer was already taking steps to make up for the ethane shortage in the long run.

Pemex officials did not respond to repeated requests for comment, but Leite said the company had accepted the import terminal project. So Braskem Idesa “is confident that this gap will be solved nationwide,” Leite added.

Despite the ongoing contract negotiations in February by the European MMA, there have been double-digit and triple-digit decreases in relevant agreements so far, marking the 11th consecutive month of decline in monthly contract prices.

Contract negotiations are expected to end this week, and looser supply and demand fundamentals remain the main source of downward market pressure.

Spot prices remained stable this week as buyers sought to bring FD prices in Northwest Europe below 2000 euros per ton, a point traders insisted on.

Supply is still plentiful, but rebalancing is expected in the future, factories will start at a lower speed, and maintenance will continue until spring.

With the start of the traditional paint season, demand is picking up and will continue until March.

In the future, the global start-up rate will remain at a relatively low level. In view of weak demand in Asia and Europe, factories need not increase the start-up rate.

At present, there are many equipment maintenance plans in Asia, and Yingchuang and Lucite also have maintenance plans in Europe in April.

Weak automobile market

The outlook for the plastic industry remains bleak, with demand for automobiles expected to weaken in Europe and Asia in the first half of this year.

Automobile market is the key terminal market of PMMA, and also the main area of future growth.

Application of MMA downstream product PMMA in automobile industry

Manufacturers say their goal is to introduce new applications for scratch resistance and durability of PMMA, which will increase the use of PMMA in automobiles.

Some traders said this week that demand had risen, possibly due to stockpiling before Britain left Europe.

The rise in demand may also be due to other factors, such as the season, the end of market de-inventory, and buyers’increased purchasing power after the recent price decline.

A source from INEOS Nitriles, a European chemical giant, said on February 14 that the announcement of force majeure at the Acrylonitrile (ACN) plant in Seal Sands, UK, had no direct impact on Lucite International’s production of MMA.

In the first quarter, MMA settled at 2,260-2,290 euros per ton of FD in Northwest Europe, down 150 euros per ton at the low end and 200 euros per ton at the high end compared with the fourth quarter of last year.

MMA January FD Northwest Europe contract settlement price was 2,495-2,515 Euro/ton, low-end fell 100 Euro/ton, high-end fell 125 Euro/ton.

Almost all of the MMAs are synthesized by polymerization. The most important application is casting, moulding or extrusion of PMMA or modified polymers.

Last week (Feb. 11, 2019 – Feb. 15, 2019), demand for potassium fertilizer started slowly, market turnover was cool, and the price of potassium chloride fell slightly. On February 18, China’s Wholesale Potassium Chloride Price Index (CKPI) was 2281.27 points, down 24.00 points, or 1.04%, compared with the previous year, up 214.77 points, or 10.39%, and down 1009.32 points, or 30.67%, compared with the base period.

Supply Situation: As for domestic potassium, the Salt Lake plant operates normally with a daily output of about 14,000 tons, and the start-up rate of small factories in Qinghai maintains a low level; the arrival price of 60% of the base products in Qinghai Salt Lake maintains 2420 yuan/ton, the regional turnover price is about 2350-2400 yuan/ton, and the rebate policy is 50 yuan/ton. In terms of import potassium, port potassium arrivals continued to increase, port stocks remained high, at about 1.7 million tons; in some ports, the price of potassium fertilizer was loose, and 62% of the mainstream quotation of Russian-Belgian potassium maintained around 2500-2550 yuan/ton. Potassium frontier trade, general inventory, market demand-driven goods, low turnover enthusiasm, 62% Russian-white potassium quotation to 2150-2200 yuan/ton.

Demand situation: the agricultural spring tillage fertilizer has not yet been opened, the demand for potassium fertilizer is cold; the purchase of new orders is scarce, and the reserve of distributors is suspended. At present, the demand for compound fertilizer is starting slowly, the stock is large, and the enterprises’goods are not good enough. The overhaul production line has not been restarted, and the overall starting rate of compound fertilizer enterprises has dropped by 5.43 percentage points to 23.53% in the previous week, which is 7.90 percentage points lower than that of the same period last year.

International market: International potassium chloride prices were basically stable last week. On the European side, inquiries in the potash fertilizer market increased and prices rose; on the Indonesian side, tenders for potash fertilizer procurement increased. Jordan’s off-shore price of potassium chloride fell by $1/ton at the low end and rose by $9/ton at the high end to $270-297/ton; Israel’s off-shore price of potassium chloride fell by $1/ton to $270-317/ton; and Canada, Russia, Southeast Asia and Brazil’s off-shore price of potassium chloride remained stable at $266-309/ton, $251-320/ton, $298-315/ton and $350-355/ton, respectively.

Domestic market: The price of potassium chloride in domestic market has dropped slightly recently. According to the monitoring data of the association, the wholesale prices of domestic potassium chloride provinces in Guangdong, Hebei and Hubei fell 137.5 yuan/ton, 25 yuan/ton and 2 yuan/ton respectively compared with the previous week, while the prices of other provinces remained stable; the wholesale prices of imported potassium chloride provinces in Shandong, Jiangxi and Guangxi increased 80 yuan/ton, 50 yuan/ton and 25 yuan/ton respectively compared with the previous week, while the prices of Hubei Province increased 80 yuan/ton, 50 yuan/ton and 25 yuan/ton respectively. Prices in other provinces remained stable, down 61.1 yuan per ton from the previous week.

On the domestic market, the port potassium arrivals continued to increase, the stock remained high; the downstream demand has not yet warmed up, the potassium fertilizer market has decreased, and the price of potassium chloride has slightly declined. With the coming of spring tillage fertilizer and the resumption of production line of compound fertilizer maintenance, the demand for potassium fertilizer may increase. In the international market, with the start of the demand for potassium fertilizer in Southeast Asia, the price of international potassium fertilizer is exploring. In summary, it is expected that the domestic price of potassium chloride will continue to consolidate and stabilize in the short term, focusing on the domestic demand for spring farming.

It is reported that Australian geologists recently discovered a huge lithium deposit in a remote exploration site in Pilbara.

This is the latest example of the discovery of lithium ore in Australia, further consolidating Australia’s position as the world’s largest supplier of key components of lithium-ion batteries.

“Australia is now the world’s lithium capital, and Pilgangoora is one of the largest lithium mines in the world.” Neil Biddle, one of the team’s geologists and co-founder of Pilbara Minerals, said, “We (Australia) are global leaders in gold and iron ore, and we can achieve the same success in lithium mining.”

It is reported that the company’s lithium ore and processing plant went into operation last November.

Pilgongura Mine is one of six lithium mines opened in Western Australia in the past two years. Optimistic market forecasts for sales prospects of electric vehicles and energy storage systems have led to a surge in global demand for battery raw materials, and these lithium mines have emerged as the times require.

UBS predicts that by 2020 Australia will surpass Latin American rivals in lithium production, accounting for half of global production, putting a country known for exporting highly polluted coal and iron ore at the forefront of a green energy revolution.

The lithium boom is attracting huge investments in new mines, and some investors have pledged to invest A$3 billion in five lithium hydroxide refineries.

These investors include heavyweight companies such as Albemarle in the United States, Sociedad Qumicay Minera in Chile and Tianqi Lithium in China, as well as a large number of small miners and new entrants in Western Australia.

This is part of a broader effort by global mining companies to explore, mine and process battery raw materials, including nickel, cobalt and graphite.

Australia is seeking to profit from this frenzy by encouraging companies to move beyond mining and ore processing and invest in more complex precursor production operations (metal and chemical mixtures used to produce battery cathodes).

This is the most profitable link in the supply chain. According to the World Economic Forum (WEF), it will boost the global lithium-ion battery market from $60 billion in 2017 to $100 billion in 2025.

In Perth, the Western Australian government is even studying whether the state can become the center of niche batteries. In recent years, the state has failed to attract such value-added activities in the iron ore boom.

“We never succeeded in steel because other people already have a foothold in that area,” said Bill Johnston, Mining Minister of Western Australia.

“But it’s about new needs, not existing ones… This is a potentially valuable opportunity.

Not everyone believes that.

Skeptics warn that if sales of electric vehicles are disappointing or optimistic predictions that lithium demand will triple in 10 years prove too optimistic, the supply boom could collapse. At the same time, advances in battery technology may also lead to alternatives to lithium, which may reduce demand.

There are also warnings that lithium prices are volatile and lack the transparency of other battery materials (such as nickel) traded on the London Metal Exchange (LME).

In Asia, the price of lithium carbonate, the most widely used form of lithium, has fallen by a third since the beginning of last year and is now at a two-year low, according to data compiled by Benchmark Mineral Intelligence, a research institute.

Morgan Stanley estimated in February last year that prices would fall by 45% by 2021 as a number of low-cost brine lithium extraction projects in Chile were launched. The bank predicts that this development will challenge a new generation of producers in Australia and China.

From 2016 to 2020, the annual production of lithium by Australian mining companies will nearly triple to 180,000 tons, far exceeding the competitors of Chile, Argentina and China, accounting for about half of the world’s total supply.

The factors driving Australia’s dominance in the market include delays in Latin American projects, rapid delivery of Australian projects, and increased customer preference for lithium hydroxide (rather than lithium carbonate) products as a result of changes in battery technology.

At present, Australia has become a world leader in battery material mining and will soon become a major lithium hydroxide processing country.

However, further up the value chain, manufacturing battery precursors, cathode materials and niche batteries is a much more difficult challenge. At present, China, Korea and Japan, which are the world’s leading countries, have a pioneering advantage, expertise and a lower cost base than Australia.

“From mining underground lithium to making batteries, ores, spodumene, hydroxides, precursor chemicals, and anodes and cathode batteries are needed. At present, we are dominant in the first two markets and are close to having a large share in the lithium hydroxide market.

Johnston said. “(We now need to) make sure that we take every step along this path, and then, perhaps in the future, there will be specific reasons to make batteries in Australia.”

According to Trade Arabia Mana on February 13, Shaikh Mohammed Bin Khalifa AL Khalifa, Bahrain’s oil minister, said that the Middle East region is expected to become the center of the ethylene industry because it has the ability to supply raw materials at competitive prices. At the opening ceremony of the Third Ethylene Middle East Ethylene Technology Conference and Exhibition (EMET), Shaikh Mohammed said that the Arabian Gulf region is the world’s major ethylene supplier and occupies an important position in the field of petrochemical industry. He stressed that the best way to determine how to make profits from the ethylene market was to understand the trends and upcoming changes in this important industry. The Minister stressed the importance of sustainable development of the bio-petrochemical industry, which plays a key role in achieving global competitive advantage by attracting technology and manpower. In addition to meeting the requirements and expectations of customers who undoubtedly contribute to reducing costs, the Minister stressed that sustainability is the only way to ensure the sustainability of success and prosperity.

Futures Daily reported on February 15: Data released by the General Administration of Customs on February 14 show that in January this year, China’s total value of import and export of goods trade was 2.73 trillion yuan, an increase of 8.7% over the same period last year.

“In January, China’s foreign trade imports and exports continued to maintain a steady and positive momentum, and achieved a good start.” A spokesman for the Ministry of Commerce said this at a regular press conference held by the Ministry of Commerce on the same day.

Data show that in January, China’s exports increased by 13.9%, imports by 2.9%, and trade surplus by 27.116 billion yuan, an increase of 1.2 times. In dollar terms, the total value of China’s imports and exports in the same period was 395.98 billion US dollars, an increase of 4%. Among them, $217.57 billion in exports, an increase of 9.1%, $178.41 billion in imports, a decrease of 1.5%, and $39.16 billion in trade surplus, an increase of 1.1 times.

Analysts believe that the growth rate of China’s imports and exports in January is better than expected, especially the export growth has rebounded considerably, reversing the sharp decline of China’s imports and exports in December last year.

“First of all, it is influenced by the factors of the Spring Festival. Trade enterprises tend to increase exports and reduce imports before the Spring Festival, in order to save inventory costs during the Spring Festival. Because this year’s Spring Festival is earlier than last year’s, the Spring Festival effect is more reflected in January, making January’s export performance relatively better. Secondly, the low export base in the same period last year led to a marked rebound in export growth in January compared with December last year. Wang Jun, president of Founder Medium-term Futures Research Institute, told Futures Daily.

From the perspective of trade types, in January, China’s general trade imports and exports reached 1.66 trillion yuan, an increase of 13%, accounting for 60.9% of China’s total foreign trade value, an increase of 2.3 percentage points over the same period last year, showing a rapid growth and an increase in the proportion. The import and export of processing trade amounted to 680.7 billion yuan, down 0.9%, accounting for 24.9%, down 2.4 percentage points. In addition, China’s import and export of bonded logistics amounted to 279.73 billion yuan, an increase of 9.3%, accounting for 10.2% of China’s total foreign trade value.

From the perspective of major trading partners, China’s imports and exports to the major markets of the European Union, ASEAN and Japan have increased, and the growth rate of imports and exports along the “one belt and one way” countries is higher than the whole.

Specifically, in January, trade between China and Europe totaled 444 billion 840 million yuan, an increase of 17.6%, accounting for 16.3% of China’s total foreign trade; the total value of China’s trade with ASEAN was 356 billion 600 million yuan, an increase of 7.8%, accounting for 13.1% of China’s total foreign trade; China’s total imports and exports of all countries along the belt and road increased by 11.5%, increasing by 2.8 percentage points nationwide, and accounting for 28.2% of China’s total foreign trade. The proportion increased by 0.7 percentage points.

Some experts said that, regardless of the type of trade or trading partners, it is not difficult to see that the overall stability of China’s foreign trade has not changed.

“In January, China’s exports to its major trading partners maintained growth, and the sharp rebound in export growth to the EU and ASEAN countries greatly boosted China’s export growth in that month.” Yide Futures macroeconomic analyst Shaolina said.

The data also show that in January, imports of crude oil, natural gas and other commodities increased, imports of iron ore and soybeans decreased, and the average price of commodity imports rose and fell mutually. Specifically, in the same month, China imported 91.26 million tons of iron ore, a decrease of 9.1%; 42.6 million tons of crude oil, an increase of 5.1%; 33.5 million tons of coal, an increase of 19.5%; 7.38 million tons of soybean, a decrease of 13%; 9.81 million tons of natural gas, an increase of 26.8%; 33.8 million tons of refined oil, an increase of 17.5%; 3.15 million tons of plastics in primary shape, an increase of 7.4%; 1.18 million tons of steel, an increase of 480 tons of unwroughed copper and copper, an increase of 82.2%. %. In addition, the import of mechanical and electrical products was 519.63 billion yuan, down 1.6%.

Looking ahead to the future market of commodities, Shaolina believes that, on the whole, the long-term downward pressure of commodity prices in China still exists, “in the near future, more oscillating prices under the influence of policies, with limited upward space”.

In December 2018, rubber prices rose as trade tensions between the United States and China cooled. However, as the world economy is still facing multiple risks, the rubber market is under pressure of falling prices.

Wu Huangying, secretary-general of the Vietnamese Rubber Association, said that although there were still many difficulties, the export volume of natural rubber, rubber products and rubber wood was increasing. He disclosed that the rubber price subsidy will continue to be implemented between now and March 1, when the United States and China withdrew from the tax increase.

Looking ahead to the first half of 2019, the export of Vietnamese rubber to China, the largest market, will also slow down as China’s economic growth slows down. In order to achieve sustainable growth of rubber export, he suggested that Vietnamese enterprises should take the initiative to expand the market and avoid excessive dependence on the Chinese market.

According to the statistics of Vietnam Customs General Administration, in December 2018, Vietnam’s rubber export volume reached 190,000 tons, with an export volume of 230 million US dollars. Its export volume and export volume increased by 5.8% and 2.9% annually, while its export volume increased by 12.7% and its export volume decreased by 5.6% year-on-year.

According to Dow Jones on February 12, Bank of America Merrill Lynch analysts said that OPEC’s share of the global oil market continued to decline, as the organization’s oil production stagnated and U.S. producers’oil production gradually increased.

The OPEC member states, led by Saudi Arabia, have most of the world’s oil reserves, but production has stagnated in recent years, while funds have poured into American shale oil producers.

As a result, OPEC’s share of global oil supply has declined. Bank of America Merrill Lynch, in its report to clients, said it expects to maintain this momentum between 2019 and 2024 due to production cuts, sanctions and inadequate investment.

In 2018, OPEC reached an agreement with 10 non-OPEC oil producers, including Russia, to cut crude oil production by 1.2 million barrels per day in the first half of this year, which is one of the measures aimed at curbing market oversupply and boosting oil prices.

In addition, the bank expects that OPEC’s new capacity in the next six years will be lower than that in the past six years.

Between 2013 and 2018, new projects will bring about a total of 7 million barrels per day of new oil production to OPEC, while potential new projects between 2019 and 2024 will bring about nearly 4 million barrels per day of new oil production.

Sanctions are expected to further limit Iranian production, which could fall below 10 million barrels a day in Saudi Arabia.

So Bank of America Merrill Lynch expects OPEC’s supply to drop from 31.9 million barrels a day in 2018 to about 29 million barrels a day in 2024, and its market share will decline accordingly in the medium term.