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Ethylene is called “the mother of organic chemicalsâ€. There are a large number of downstream products, of which about 60% are used to produce polyethylene. Other important downstream products are ethylene glycol, polyvinyl chloride, styrene, and acetic acid. Under Sinopec and PetroChina's decompression strategy, the supply of downstream products in the relevant regions has experienced varying degrees of shortage or price increases. Taking Shandong as an example, Qilu raised the ex-factory price of styrene to 13,700 yuan/ton, and the increase rate was 500 yuan/ton.
Yin Xiaodong, a research fellow at CITIC Securities, believes that this limited production order does have some pressure on downstream products. Under the premise that the state guarantees the supply of refined oil, the production of naphtha will naturally be affected. For the production of products such as olefins and aromatics, it will also be subject to certain restrictions, among which products such as plastics, rubber, and chemical fiber are greatly affected.
Also holding the above viewpoint is Dengyong Haitong Securities researcher, he believes that the market is about to enter the peak of summer harvest oil, high oil shortage, Sinopec, PetroChina product structure adjustment is very natural. The pressure on the downstream products needs to see the length of the order.
For companies engaged in the production of plastic PET beverage bottles, preforms and other related products in China, Zhuhai Zhongfu (000659) and Zijiang Enterprise (600210), the reduction in the production of ethylene and aromatic hydrocarbons may be a test for the supply of raw materials.
“The impact on the company will naturally have, but it will not be very big.†A related person in Zhuhai Zhongfu Securities Affairs Office stated that on the one hand, the company has a special purchasing team, who will use the seasonal supply and demand relationship of materials to adjust the inventory in time. On the other hand, the risk of rising raw material prices can be reduced through the production of PET chips; at the same time, risks can be dispersed through the processing of incoming materials.
In the price increase last year, Zhuhai Zhongfu felt the pressure on its own. In mid-2007, Zhuhai Zhongfu PET raw material production gross margin was 5.75%, and by the end of 2007, the above data became 1.86%. "The increase in the cost of PET raw material business due to the increase in raw material prices at the upstream end will eventually reduce the operating profit margin," said Zhuhai Zhongfu.
Similarly, as the important raw material of Zijiang enterprise's polyester chips and other chemical raw materials, the large price fluctuations in 2007 caused a greater pressure on its product cost. In mid-2007, the gross profit rates of PET bottles and preforms and plastic anti-theft caps for Zijiang enterprises were 21.98% and 28.1%, respectively. By the end of 2007, the above figures were 21.86% and 27.62%, respectively.
"The white pollution of plastic bags and the inherent defects of glass bottles make PET beverage bottles have a competitive advantage in the market. Therefore, the pressure reduction of ethylene products and the current plastic limit will not affect the product structure adjustment of the company's customers." .
Heat Treated Steel Bar And Tube
Heat treated steel bar is produced by heating and cooling in different temperature based on the steel grades to improve the steel bar mechanical properties or machinability for various industrial applications. Heat treated steel bar includes annealed steel bars, Normalized Steel Bar, quenched and temper qt steel bar.
Annealed Steel Bar has better ductility and lower hardness, which can be easier to be machined. The annealing processing is usually widely used for steel grade with higher carbon content above 0.5%. However, some low carbon steel also requires to do annealing for special usage such as 20CrMnTi gear steel. For some special material such as 20CrMnTi gear steel and GCr15 such bearing steel, spheroidizing annealing is often required.
Normalized steel bar sometime is also one kind of annealing processing. It mainly changes the grain to remove the impurities in steel and improves the strength and hardness. For some hot rolled steel bars, to keep the basic mechanical properties, normalizing is often used.
Quenching and Tempering, abbreviated as Q&T is a king of processing that strengthen or harden steel bars by heating the materials and then cooling in water, oil or other liquid medium, that rapidly the change from austenite to perlite to get the proper properties for various usage. The quenched & tempered steel bar materials are usually with carbon from 0.30% - 0.60%, it is widely used as merchant bars in components of various machines.
Our advantages on producing heat treated steel bars:
1) Big stocks of hot rolled round bars or wire rods as raw materials
2) Wide range of Cold Drawn Steel Bar sizes: from 10mm to 150mm
3) Different cold drawing medias powder or oil to get different surface
4) Straightening machines to get better straightness up to 0.5mm/m
5) Grinding and polishing machines to get better roughness upto 0.4um
6) Heat treating furnaces to adjust the mechanical properties
7) Full sets of testing equipment to test the sizes, mechanical properties and microstructure.
8) Multiple packages to avoid broken packages and anti-rusty
Heat Treated Steel Bar And Tube
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