China Xiamen Juguangli Import & Export Co., Ltd Company News

Financial media news: Due to the tight supply, chips and core raw materials have also risen, and some of them can hardly get the goods even if the price increases. According to a Chinese customs official, the number of integrated circuits imported at Kunshan port alone exceeded 10 billion yuan from January to February this year. While the quantity was basically the same as last year, the amount of imports increased by 20%, and the price of chips remained unchanged. On the rise. Silicone products related to chips are also rising.

Last Friday, Eastern Time, Fed Chairman Powell published a column in the Wall Street Journal, continuing to speak out to stabilize the hearts of the people, promising that the Fed will "fully" support the economic recovery, as long as the economy needs it, the Fed will continue to provide support. Although Powell has noticed a substantial improvement in the economy, the Fed will maintain its accommodative policy because "the recovery is far from complete."   The Federal Reserve announced on Friday that the supplementary leverage ratio (SLR) relief measures will expire on March 31 and will not be extended. Federal Reserve officials are optimistic that they do not believe that commercial banks need to sell U.S. debt to meet reserve requirements. With the current reserves of approximately US$1 trillion, banks only need to make fine adjustments.   It is understood that Powell will continue to make public appearances this week to continue to appease market sentiment.

Recently, Wacker Chemie announced its 2020 financial data. In 2020, sales of 4.69 billion euros were achieved, a 5% decrease from the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 666.3 million euros, down 15% year-on-year, and the EBITDA margin was 14.2%. Earnings before interest and taxes (EBIT) was 262.8 million euros, and the EBIT margin was 5.6%. The full-year profit for 2020 is 202.3 million euros.

According to monitoring data, in 2020, the global organic silicon production capacity will exceed 3 million tons/year (in terms of siloxane, the same below), an increase of 155,000 tons/year year-on-year, and all new production capacity in 2020 will be concentrated in China.   China's organic silicon production capacity expansion plans are very aggressive in the future. If all the new projects are successfully completed and put into operation, the global silicone production capacity will increase by more than 60% to 4.915 million tons/year, while China's silicone production capacity will increase by nearly 130% to 3.399 million tons/year. By then, China's organic silicon production capacity will increase from 50% increased to nearly 70%. However, there is a big uncertainty as to whether the newly planned projects can be completed and put into production. According to industry professionals, the capacity of the above-mentioned projects that can be completed and put into production is about 650,000 tons/year. It is estimated that in 2023, the global organic silicon production capacity will reach 3.651 million tons/year, and China's organic silicon production capacity will reach 2.289 million tons/year.   Silicone is widely used in almost all industrial fields and high-tech fields such as construction, textiles, electronics, transportation, aerospace, new energy, medical, daily chemicals and personal care. It is an indispensable material in modern industry and daily life , Therefore, the growth of organic silicon demand and GDP growth (economic growth) are highly correlated. According to historical data analysis, the growth rate of global organic silicon demand is generally 2% to 3% higher than the GDP growth rate over the same period.   It is expected that the global organic silicon demand will continue to grow rapidly in the future, and the main driving factors include: global economic recovery. With the expansion of the scope of new crown vaccination, the impact of the epidemic on the world will gradually fade in the future, and a greater recovery of the global economy will be a high probability event, which will drive the growth of silicone demand.

Global Silicone Network News: On March 10, 2021, Specialty Chemicals Group LANXESS announced that it is raising the price of its engineering plastics immediately or subject to the contract. The adjustment affects Europe, the Middle East and Africa. Regarding the reasons for the price adjustment, LANXESS stated that the cost of raw materials, logistics and energy has risen sharply again, and most of them have exceeded the level before the outbreak of the Covid 19 pandemic. This increase is inevitable.

Global Silicone Network News: In the first two months of 2021, China’s total import and export value was 5.44 trillion yuan, an increase of 32.2% over the same period last year (the same below), of which the total value in February was 2.42 trillion yuan, an increase of 57%. The first foreign trade report card of this year issued by the General Administration of Customs on March 7 achieved a "good start". It not only showed a strong recovery trend of "off-season but not weak", but also opened up a new situation in my country's foreign trade development with a series of new bright spots. These new highlights have become the confidence and power point for stabilizing foreign trade this year. The author has noticed that orders from thousands of export-oriented silicone manufacturers have continued to grow steadily.

From March 1, 2020 to February 28, 2021, China exported approximately 43.85 billion masks, 17,585 ventilators, approximately 1.19 billion pairs of surgical gloves, approximately 950 million sets of protective clothing, and approximately 54.03 million pairs of goggles to the United States. Among them, the export of silicone anti-epidemic products increased significantly.

Dow signed a memorandum with the Management Committee of Zhanjiang Economic and Technological Development Zone, planning to establish a South China specialty chemicals manufacturing base for Dow to provide customers with high value-added products and innovative technologies produced locally by Dow.   According to the memorandum, Dow will invest about 250 million U.S. dollars to build special polyurethane and special surfactant devices, with a total production capacity of about 250,000 tons. The planned South China manufacturing base will effectively improve Dow's local production capacity, further improve supply reliability, accelerate market demand response, and strengthen customized innovation to help customers in automotive, pharmaceutical, cleaning, clothing, lubricants, and adhesives Wait for the market to succeed. The base also reserves space for future growth and development.

According to the Ministry of Industry and Information Technology: In 2020, my country's industrial added value will reach 31.31 trillion yuan, ranking it as the world's largest manufacturing country for 11 consecutive years. In 2020, the growth rate of new energy vehicles reached 10.9%, and showed a continuous growth trend; production and sales volume ranked first in the world for 6 consecutive years, with a cumulative sales of 5.5 million vehicles.   By the end of 2020, my country had opened a total of 718,000 5G base stations, and the number of 5G mobile phone terminal connections exceeded 200 million. These have driven the rapid development of the silicone industry chain.

The recent financial report released by the German pharmaceutical and agrochemical giant Bayer shows that, mainly due to legal litigation and other factors, Bayer has a net loss of approximately 10.5 billion euros in 2020, a record loss. In June 2020, Bayer reached a series of settlement agreements with the US plaintiff in a civil lawsuit involving the herbicide produced by its subsidiary Monsanto that may cause cancer and damage crops. Bayer also compensated Monsanto's involvement in environmental lawsuits in the United States for the toxic chemical PCBs produced by Monsanto. The compensation paid to Bayer caused losses in excess of US$10 billion. The financial report shows that Bayer's sales revenue of 41.4 billion euros in 2020, a year-on-year decrease of 4.9%. Bayer CEO Werner Bowman pointed out that Bayer reached more than 20 mergers and acquisitions or cooperation agreements in the pharmaceutical business last year. In the future, it will continue to promote corporate transformation, broaden product pipelines, and invest in new technologies. Bayer, headquartered in Leverkusen, Germany, has 750 production plants in 200 locations on six continents; it has 120,000 employees and 350 branches, almost all over the world. Polymer, medicine and health care, chemical industry and agriculture are the company's four pillar industries. The company's product categories exceed 10,000. On June 7, 2018, Bayer announced the completion of the acquisition of the American biotechnology company Monsanto, and Monsanto shareholders received a compensation of $128 per share.