Automotive performance is declining, chemical companies have been hit hard, and the chemical industry is going to change?

Recently, from Europe to the United States, to Japan, the latest financial reports and forecasts released by many multinational car companies have disappointed the market.
Daimler AG'snet profit in the first half of the year fell 78% year-on-year to 907 million euros.
The company expects that for the whole year of 2019, Daimler's sales and sales will be slightly higher than that of 2018, but the level of profitability will be significantly reduced.
Nissan Motor Co.
’soperating profit fell 98.
5% in the first quarter of fiscal year 2019, and its net profit fell nearly 95%.
Tesla’s second-quarter financial report showed a loss of $408 million in net profit; since this year, Tesla’s stock price has A decrease of about 22%.
These latest performance results jointly highlight the tremendous pressure on auto companies in the global economic slowdown and the transformation of the auto industry.
Affected by the slowdown in world economic growth and the intensification of global trade frictions, the overall demand for the automotive industry has weakened.
According to existing forecasts, the growth rate of global industrial production in the first half of 2019 is about 1.
5%, which is much lower than expected.
The decline in the growth of the automotive industry is particularly significant: in the first half of 2019, global automotive production fell by 6%, while the decline in the Chinese market was as high as 13%.
Affected by the slowdown in world economic growth and the intensification of global trade frictions, the overall demand for the automotive industry has weakened.
　　Significant decline in performance　　Significant decline in　　performance　　Dragged by the downturn in the automotive industry, the chemical industry, especially chemical companies that previously used automotive materials as a key growth driver, suffered a sharp decline in performance in the second quarter.
　　Dow’s 　　net sales were US$11.
014 billion, a year-on-year decrease of 14.
29%; 　　operating profit before interest and tax was US$1.
059 billion, a year-on-year decrease of 5.
8%; 　　operating profit before interest and tax was US$1.
802 billion, a year-on-year decrease of 5.
6%.
　　BASF　　Sales were 15.
2 billion euros, a year-on-year decrease of 4%; 　　excluding special items, EBITDA was 2 billion euros, a year-on-year decrease of 27%; 　　Covestro’s 　　core business sales increased slightly (+1.
1%); 　　Group sales totaled approximately 3.
2 billion euros (-16.
9%); 　　EBITDA was 459 million euros, in line with expectations (-53.
4%); 　　net profit fell to 189 million euros (-68.
7%); 　　free operating cash flow was negative 55 million euros .
　　PPG's 　　continuing operations achieved net sales of nearly 4 billion U.
S.
dollars, a year-on-year decrease of nearly 3%; 　　total sales fell by about 4% year-on-year; 　　continuing operations achieved net profit of 270 million U.
S.
dollars, and adjusted net profit of 441 million U.
S.
dollars.
　　Eastman's 　　sales were US$2.
363 billion, a year-on-year decrease of 11%; 　　earnings before interest and taxes (EBIT) fell by 24.
4%; 　　Saudi Basic Industries Corporation’s 　　net profit fell from last year’s 6.
7 billion riyals to 2.
12 billion rials (5.
65 billion rials).
Billion US dollars); 　　profits fell to the lowest level since 2009, and its stock price fell 3.
8%.
　　Evonik　　sales fell 3% year-on-year to 3.
31 billion euros; 　　adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 8% to 566 million euros.
　　Huntsman's 　　net income was US$118 million, compared with US$623 million in the same period last year, a sharp decline year-on-year; 　　diluted earnings per share was US$0.
47, compared with US$1.
71 in the same period last year;　　Adjusted net income was US$146 million, compared with US$246 million in the same period last year.
　　Solvay's 　　basic EBITDA decreased by 5.
2% organically; 　　among them, the basic EBITDA of high-tech materials decreased by 17%, which resulted in a 12% decrease in its performance in the first half of the year.
The composite materials and aerospace sectors achieved double-digit sales growth, partially offsetting the impact of the decline in the automotive and electronics markets.
　　The domestic chemical industry is not having a good life.
Judging from the industry's economic performance data released yesterday, the petrochemical industry's operating income exceeded 6 trillion yuan, an increase of 2.
2% year-on-year; but the total profit fell 18.
3% year-on-year; the total profit of the refining sector fell by as much as 62.
4%.
The operating income of the petrochemical industry exceeded 6 trillion yuan, an increase of 2.
2% year-on-year; however, the total profit fell by 18.
3% year-on-year; the total profit of the refining sector fell by as much as 62.
4%.
Poor performance of automotive-related chemicals Poor performance of automotive-related chemicals is 　　obvious.
One of the key factors leading to the decline in these performances is the bleakness of the automotive-related chemicals industry.
　　Among all BASF's declining sales segments, the two major business areas, chemicals and agricultural solutions, are the most significant.
Among them, in the chemicals and materials sector, the sales of isocyanates and cracking products fell by 6%.
In addition, as the largest chemical supplier in the automotive field , the automotive field has always been BASF's largest customer field .
In March 2019, BASF completed its first Asia-Pacific automotive application research and development center in Shanghai.
The isocyanate automotive field has always been BASF’s largest customer field　　Covestro pointed out in the financial report that its polyurethane business segmentCore business sales increased by 0.
7%.
Due to intensified market competition and lower sales prices, sales in this sector fell by 24.
3% to 1.
489 billion euros.
Due to the decline in sales of core businesses from the automotive industry, sales in the polycarbonate segment fell by 15.
0% to 898 million euros.
Due to the decline in sales prices, EBITDA for the polycarbonate segment fell by 46.
0% to 154 million euros.
The polyurethane business segment fell 15.
0% to 898 million euros.
Due to the decline in sales prices, EBITDA for the polycarbonate segment fell by 46.
0% to 154 million euros.
　　Polyurethane and polycarbonate are both big players in the new automotive materials.
Under the influence of the lightweight trend of automobiles over the years, chemical giants have put great effort into the application and promotion of these two materials in the automotive field.
　　The amount of polyurethane used in automobiles is one of the important indicators to measure the quality of automobiles.
The application of polyurethane materials in automobiles, from interior to exterior, from soft to hard, from foamed to non-foamed, and from lightweight to dense, is involved.
According to statistics, in the North American automotive plastics market, polypropylene materials occupy a dominant position, accounting for 35% of the automotive plastics market, followed by polyurethane (PU) materials, accounting for 17%.
At the same time, polyurethane coatings also play a pivotal role in automobiles.
　　The automotive sector is one of the main downstream markets for polycarbonate, which is widely used in automotive lighting systems and automotive interior and exterior trim, and its application in new energy vehicles also highlights its advantages.
China's polycarbonate application in the automotive field accounts for about 16%, while from a global perspective, this data is 18%.
China's polycarbonate application in the automotive field accounts for about 16%, while from a global perspective, this data is 18%.
　　PPG pointed out that due to the impact of the decline in global automobile production, as well as the significant decline in automobile demand in China and Europe, the net sales of OEM coatings fell by high single digits compared with the same period of the previous year .
Industrial coatings in multiple subdivided business areas Business sales volume decreased compared with the same period last year. 　　PPG's automotive coatings business is second to none in the world, and is the business unit that accounts for the largest proportion of PPG's overall business services.
As an OEM partner, PPG can provide all the coatings required by the paint shop, such as electrophoretic paint, intermediate coat, primer, color paint and varnish contained in automotive paint coatings.
It also includes glue products.
The impact of declining car sales on PPG's business can be imagined.
The net sales of OEM coatings showed a high single-digit decline over the same period last year. 　　Eastman pointed out that due to the impact of trade issues on non-essential consumer goods markets such as transportation and consumer durables, the current global economic growth slowdown has led to special materials, chemical The demand for intermediate products decreases.
Evonik pointed out that the slowdown in the development of the coatings industry in the automotive and transportation coatings industry has caused its resource efficiency business segment sales to fall by 2% to 1.
4 billion euros.
Adjusted EBITDA fell 9% to 325 million euros.
Huge auto chemical family Huge auto chemical family 　　1.
New materials　　At present, auto parts and interior and exterior trim parts have adopted a large number of new chemical materials.
The materials involved in the automotive interior industry chain are shown in the following figure: 　　2.
Automotive lubricants,
　　automotive lubricants Divided into several categories such as mineral lubricating oil, synthetic lubricating oil, semi-synthetic lubricating oil.
Generally speaking, lubricating oil contains PAO (Poly Alpha Olefin, poly a olefin), which is called synthetic engine oil.
Fully synthetic motor oil is formulated with 100% PAO (PolyAlpha Olefin poly-α-olefin) as base oil and additives.

　　High-carbon α-olefins such as 1-decene are raw materials for high-grade lubricating oil base oils.
At present, the middle and low-grade lubricants and most of the high-grade lubricants produced by cracking products under the wax oil (characteristic of my country's crude oil: high wax content) are eliminated.
　　3.
Car tires　　The main component of most automobile tire materials is natural rubber or synthetic rubber, and the most widely used are natural rubber, butadiene rubber, styrene butadiene rubber, butyl rubber, etc.
The overall performance of natural rubber is superior to that of synthetic rubber, so high-grade tires use natural rubber.
In order to make the rubber have the performance required for the manufacture of tires, it is necessary to infiltrate various chemical materials, namely chemical additives, into the rubber.
One of the most important additives added is carbon black, because carbon has special adsorptivity, and the bonding between carbon particles and rubber molecules is very good, making the rubber enhanced hardness, strength and wear resistance.
Since carbon black is basically equal to rubber, the main material of automobile tires is actually a composite material of rubber and carbon black.
　　4.
Automotive Coatings 　　According to BCC Research data, in 2018, the global automotive coatings market coatings market is expected to be around $ 22.
8 billion, and kept rising channel.
Is expected to 2023, global automotive coatings market coatings market will reach $ 27.
3 billion, the annual compound growth rate of 3.
6%.
　　On the whole, the automotive coatings market is mainly divided into two parts, the new automotive coatings market and the repair coatings market.
The subdivisions can be divided into original paints, refinish paints, parts coatings and other coatings.
The proportions of each subdivision of automotive coatings are 44%, 26%, 18%, and 12%, respectively.
Among them, automobile original paint still occupies a large proportion.