Many sub-sectors of the chemical industry, the big trend is very obvious. The entire industry boom peaked in 2009 years ago, and since then, had to decline. In the first half of this year, chemical sub-industry boom of the signs of accelerating decline. However, the rubber industry there have been signs of stabilization.
The whole chemical industry overall net profit rate reached a peak of 6% in mid-2009, stable at about 4% in the next two years. The second half of 2011, the industry boom rapidly declining, and the first half of this year, the industry's net profit margin fell to 2%, the decline was very obvious.
The chemical industry covers many sub-sectors of the chemical raw materials, chemical products, petrochemicals, plastics, rubber, and overall demand is closely related to the national economic boom, while the level of the upstream costs also affect the profits of most chemical companies. In short, the main cause of the decline of the chemical industry profits are either rising costs, either a drop in demand.
ST Sichuan-based production of urea, for example, its performance downturn is mainly limited by the upstream resources. The company said that due to the natural gas supply situation has not been alleviated, and its main production unit to be produced in the first quarter of this year for a long time in the state, and March 13, began to supply gradually restored, but still at a very low load operation state, leading to company production and operation of an extremely severe situation.
Many chemical sub-sectors of the rubber industry, especially the profitability of the tire industry, there are signs of recovery. The statistics show that in the rubber industry gross margin reached 17.5% of the high points in the mid-2009 to mid-2010 and mid-2011, hovering around 12%, the first half of this year, the gross profit margin of the rubber industry has rebounded to 14.57%. The net profit margin of the industry trend is similar.
To Luntai, for example, after the peak in 2009, the gross profit margin of the company since 2010, began to stabilize in the first half of this year, gross profit margin to recover from last year's 12.7% to 15%. Luntai staff said, the recent decline in product cost, demand is relatively stable, "the second half of the year, we estimate the macroeconomic situation would be better, the companies boom of the industry and macroeconomic closely related."
In addition, U.S. President Barack Obama announced on September 11, 2009 China tire special safeguard measures will expire in September of this year. Analysis of the industry, which is a positive for the second half of the domestic rubber tire industry.
