Rising oil prices push up prices of chemicals

A number of brokerages reported that the international oil price will also be one of the important factors affecting the trend of A-shares. Continuing rise in crude oil prices will boost the price of related chemicals.

Since the third quarter of last year, international oil prices have been on the rise. On February 23, the New York Mercantile Exchange's March crude oil futures rose by 2.6 U.S. dollars on Tuesday, up 2.5%, and closed at 105.84 U.S. dollars per barrel, which is the highest settlement price of the recent month’s contract since May 4th last year. . The closing price of the most active April contract even reached $106.25. Brent crude oil ** last Tuesday to 121.13 US dollars, reaching a nine-month high.

Citigroup predicts that oil prices will fluctuate within a narrow range this year, and Brent crude oil prices fluctuate between 100 and 120 US dollars. Goldman Sachs also predicts that crude oil prices will continue to rise in the latest research report, and will approach 120 US dollars this year.

If oil prices continue to rise, it will have a very significant impact on China’s macroeconomic and related sectors of A-shares. First of all, the continued rise in crude oil prices will push up the price of related chemicals. According to statistics, out of the 68 chemical products monitored, 18 products were rising in price last week, and ethylene, propylene, butadiene and PVC remained strong. . Last week, some companies in Shandong and Hebei raised the ex-factory price of urea, and Shijiazhuang Lianhua wet-grade ammonium chloride rose by 1.1% to 880 yuan/ton. Some of the phosphate ore companies have resumed their work and prices have risen. Phosphorus also rose under the lead of rising raw material phosphate rock.

In addition to the positive effects on prices of chemical products, the continued rise in international crude oil prices will also increase the price of domestic refined oil products, which will constitute a relatively large negative factor for the transportation, machinery manufacturing and logistics industries. The relevant energy-saving and emission-reduction sectors will get more attention from the market.