A new round of central environmental inspections is about to attack pesticide raw materials or will skyrocket

Recently, the Ministry of Environmental Protection held an (expanded) meeting of the Party Group of the Ministry of Environmental Protection.
At the meeting, it was announced that in 2019, it is planned to continue the second round of central environmental protection inspections
.
The price increase of some chemical products has become a high probability event
.
The Ministry of Environmental Protection recently stated that it plans to launch the second round of central environmental inspections in 2019
.
From the end of 2015 to the end of 2017, China has completed the first round of central environmental protection inspections covering 31 provinces (autonomous regions and municipalities), effectively promoting local environmental protection work and solving a large number of prominent environmental problems
.
According to statistics, the first round of central environmental protection inspectors directly promoted the solution of more than 80,000 environmental problems around the people; at the same time, local governments took advantage of the momentum to promote the solution of a number of environmental protection "old problems" that have been trying to solve but have not been solved for many years, and they have been included in the rectification plan.
Nearly half of 1532 outstanding environmental issues have been resolved
.
At the same time, the first round of inspectors held individual talks with 768 leading cadres at the provincial level and above and 677 department-level leading cadres, and conducted visits to 689 provincial-level departments and units
.
Through inspector accountability, a group of leading cadres were alerted, and environmental protection pressure was effectively transmitted
.
Since the initiation of the inspection, various provinces (autonomous regions and municipalities) have issued or revised more than 240 environmental protection policies and regulations, system standards, etc.
; 31 provinces have issued environmental protection responsibility division documents, environmental protection inspection plans, and party and government leaders Implementation measures for the accountability of cadres for damage to the ecological environment; 26 provinces have carried out or are carrying out provincial-level environmental protection inspections
.
Recently, CCTV News reported that Minister of Environmental Protection Li Ganjie pointed out at the 2018 National Environmental Protection Work Conference that in the next three years to fight pollution prevention and control, the most important thing is to win the blue sky defense battle and further significantly reduce the PM2.
5 concentration
.
Industry experts said: The environmental protection situation in 2018 is still severe, and the price of chemical raw materials will continue to rise! Environmental protection will still be strictly investigated for 3 years.
According to CCTV reports, environmental protection will have to be strictly investigated for 3 years starting in 2018
.
In addition to the Beijing-Tianjin-Hebei and surrounding areas and the Yangtze River Delta, the Fenwei Plain (including Xi'an and Xianyang in Shanxi Province and Shaanxi Province) will be included in the key areas for air pollution prevention and control for the first time.

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In 2018, the Ministry of Environmental Protection needs to focus on the following tasks: fully launch the battle plan to win the blue sky defense war
.
Formulate and implement a three-year plan to win the battle against the blue sky, and introduce implementation plans for air pollution prevention and control in key areas such as the Beijing-Tianjin-Hebei and surrounding areas, the Yangtze River Delta, and the Fenwei Plain
.
The average concentration of PM2.
5 in cities at and above the prefecture-level and above dropped by 2% year-on-year; the ratio of days with good air quality in cities at and above the prefecture level reached 79%; the emissions of sulfur dioxide and nitrogen oxides continued to decline; continued to promote the pollution control of scattered coal and motor vehicles
.
Insufficient raw material capacity.
De-capacity has been going on around the world for some time.
Among them, after many large international TDI companies started to de-capacity in 2016, the market supply is insufficient, and domestic TDI prices have soared to 50,000/ton.
The continuous high prices have surprised many people! In addition, the impact of the emergency in 2017 on chemical production capacity is not small?? Some chemical giants, including BASF, need to suspend production due to force majeure, and the shortage of supply in the international market has caused domestic Product prices have changed
.
For example, MDI (diphenylmethane diisocyanate) products were affected by Hurricane Harvey's attack on the Gulf of Mexico in the United States, which triggered a hot market in August-September
.
Rising crude oil prices and price monopoly Saudi Arabia and Russia promised to extend production cuts at the OPEC meeting held in Vienna on November 30, which provided favorable support for the supply side of the crude oil market.
Investment banks such as Goldman Sachs and UBS raised their expected crude oil prices
.
It is expected that the crude oil market will continue to improve in 2018, but there is little room for further upside.
The international crude oil price may operate within the range of US$45-70/barrel throughout the year
.
Crude oil price fluctuations have a certain impact on the chemical industry.
Judging from the current situation, crude oil will still be very good in 2018! The price increase of some chemical products has become a high probability event
.
The other is price monopoly.
Recently, the Ministry of Commerce of China has been dealing with the dumping of chemical raw materials in their respective countries.
In addition to this, some domestic products have high technical barriers, resulting in fewer manufacturers, which is prone to excessive prices and suspicion of joint price increases by the downstream.
In the plastics industry, many companies have been punished for jointly increasing the price of PVC, while in the chemical industry, TDI’s four major domestic manufacturers have been reported by real names and suspected of price control.

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Let alone whether there is a price monopoly, for some products, if there are too few production companies, the initiative is turned to sellers.
In addition, some middlemen and traders speculate in prices, resulting in false high prices
.
These are all established facts that already exist.
In addition, unexpected accidents, New Deals, and force majeure will also cause the chemical market and the price of chemical raw materials to rise.
Therefore, in the new year, you can pay more attention to market changes and make stocking plans
.