Policies support consumption and the chemical industry is gradually on track

As of June, a series of economic data has been released one after another: First, the Caixin Service Industry PMI rose above 55, a record high in the past 10 years, showing a strong driving force driven by consumption.

Production index rises
At the same time, the Caixin Manufacturing PMI stood at 50.7 in May and returned to the expansion range. Although foreign demand remained sluggish, foreign trade exports continued to decline from January to May, but under the situation of domestic taxation policy dividends to vigorously promote the resumption of business and production Confidence is gradually recovering. As business operations gradually return to normal, manufacturing production rebounded for three consecutive months, and the May production index recorded its highest level since February 2011.

Production resumed significantly faster than demand, dragged down by weak external demand, although the new order index rebounded slightly from last month, it was still in a contraction range. In order to stop the spread of the epidemic, many countries have implemented strict measures, including suspension of production and business operations. Although the new export order index has rebounded, it has been in a contraction range for five consecutive months.

From the perspective of the inventory cycle, the purchasing inventory continued to decline in May. Due to the need to deliver orders and the sluggish demand, efforts were made to reduce inventory, and the enterprise finished product inventory index fell. However, after the improvement of the epidemic situation is expected, the global economic situation will become stronger. The Chinese manufacturing industry has confidence in the coming year, and optimism is rising in the expansion range.

Therefore, it is expected that after June, the raw material inventory index will continue to rise, and under the support of market confidence and production enthusiasm, the enterprise production index will continue to rise.

Macro policy support
In terms of macro-policy, the emphasis on “six stability” and “six guarantees” has been given to support small and medium-sized enterprises with more precise monetary policies, focusing on stimulating and stimulating the leading power of the overall economic recovery of consumption. In view of the hot situation, the recovery progress of market players continues to accelerate.

The comprehensive recovery of consumption power has given more support to the expansion of the overall demand for domestic chemical products. Under the harsh external environment, the overall production and sales rate of the chemical industry has continued to increase, and the overall production and sales rate of organic chemical products has recovered to more than 70%. The industry even outperforms the direct enlargement of product demand in the consumer sector and the strong support of medical protection products. The overall production and sales of the production enterprises and the income are even higher than the normal levels in previous years.

In the second half of the year, the domestic macroeconomic recovery is expected to continue to accelerate and rebound, and the recovery of the consumer market is expected to continue. It is expected that in the third quarter of today's peak season for traditional chemical products, the overall market activity will reach a new height. It is expected that the favorable policies received by the downstream of basic chemicals and terminal enterprises will be significantly released, such as automobiles and building materials.

Clothing, food, housing, transportation, and other aspects of consumption growth will be further released, so that the domestic demand level will promote more effective development momentum. It is expected that the second half of the second half of the year, including the expected recovery of the external market, will not continue. The domestic basic chemical downstream, terminal internal and external demand will continue to recover Sexual recovery, and the overall market prosperity of chemical products in the upper and middle reaches will be further improved.