China’s first quarter loss of 23.924 billion yuan refining industry, petrochemical industry since 2001, the first decline in profits

The chemical commerce is a bigger percentage of the supply market in China, China Petroleum (601857) (601857.sh) and Sinopec (600028) (600028.sh) is a large-scale heavyweight. First quarter of this year, the chemical commerce in the petrochemical and chemical commerce founded on two sub-sectors due to the extending increase in worldwide oil charges initiated by the influence of slower growth. China Petroleum and Chemical Industry Association’s facts and numbers display that China’s oil perfecting commerce in the first quarter decrease of 23.924 billion yuan, the petrochemical commerce since 2001, the first down turn in profits. At the identical time, crude oil charges regardless of the advancement of chemical goods founded on cost, but still reached but the appearance of down-cycle. Rising charges of crude oil is the “culprit”

The chemical industry is highly cyclical, in the past few years, China’s rapid economic development, rapid growth rate of fixed investment, so the expansion of the chemical industry and the growth rate of profit is very gratifying. However, environmental protection, as well as putting pressure on raw materials rose gradually, together with the global impact of China’s macro-economic slowdown. Thus, the expansion brought about by increased spending, the increase in financing costs, product gross margin decline and slowdown in sales and other factors may lead to expansion of the chemical industry started to enter a cyclical downward trend.

Orient Securities oil and chemical commerce, said Wang Jing, head analyst in the long run, the petrochemical commerce into a recession will not be so soon. Because, regardless of high oil charges, but the smaller comes to of the commerce demand for oil contrasted wang. “China is the world’s third-largest oil trading homeland, and apprehend up with Japan’s tendency of second place. The extending increase in worldwide crude oil charges, the charges for imported crude oil expanded, oil perfecting enterprise deficiency, producing in industry-wide earnings decline. ”

GF Securities chemical industry researcher Wei-Dong Li said that the refining industry a huge loss, but the agricultural chemical and inorganic chemical in the soda ash industry is thriving. This year, in international product prices of raw materials prices and prices of agricultural products and other factors, agricultural product prices continue to rise. In addition, due to the lower reaches of the demand growth rate faster than productivity, resulting in soda ash prices.

Sinopec came arduous shrinking yield

The chemical industry’s leading companies are the two heavyweight China Petroleum and Sinopec. “From these two levels of the company’s business, its upstream and downstream industry chain is fairly complete, but the emphasis on the upper reaches of the China National Petroleum oil and gas exploitation, and the emphasis on the lower reaches of China’s petrochemical refining industry. Therefore, the difference from a business point of view China’s Sinopec by high international oil prices, as well as the domestic refined oil price controls a greater impact. ” Jing said.

As a result of the continued deterioration of the current inflationary pressures, China’s refined oil prices and international prices of the phenomenon of inversion will be continued. Sinopec quarterly published this year showed that the larger the affected its performance, its basic earnings per share 0.077 yuan, net assets yield 2.13 percent, 332 billion yuan of business revenue. Judging from the net profit, 6.7 billion the first quarter of 65.78 percent year-on-year. And in fact as high as 7.4 billion in government subsidies, the company lost 700 million yuan.

Recently, the Ministry of Finance handed out supportive principles, encompassing grants for trades of crude oil processed and perfected oil trades of value-added levy refund policy. Jing said that Sinopec is China’s biggest oil perfecting enterprise, about 70% of the buy of crude oil from the worldwide community. Subsidies and the function of levy rebates is very restricted, confined to command fluctuations in their presentation, and any try to halt the down high ground trend.

Agricultural chemistry and chemical-based soda ash best features

In the rudimentary chemical commerce, said Wei Dong Li, as the ethylene cracker expansion of the finances founded on degree of petrochemical goods in the relentless down turn in disperses extend to narrow.

And downstream chemical businesses, tdi, mdi (both for the output of polyurethane raw materials) and the organic silicon commerce has went into a time span of fast expansion, the cost is steady at present, not numerous brilliant spots. However, the general chemical commerce founded on the case of a glossy, Dong Li-wei and soda that the ranchers will become the cornerstone for a bigger room for the development of chemical commerce this year, the two sub-sectors. “Agriculture and the charges of soda ash will be more considerable boost in these two sub-industry profitability.”

Mdi yield as a effect of advancing the foundation in order that unwavering expansion recital, Dong Li-wei recommended Yantai Wanhua worry (600309) (600309.sh). The attainment of the company’s 2007 profits 7.804 billion yuan, an advance of 55.77%, mesh yield of 1.481 billion yuan, up 71.56 per share yield of 0.89 yuan, with higher growth. Its sales arrived at 40.39 out of 100 total margin than the 2006 rate of 35.75% certain to increase. Mdi in the household costs as a effect of noteworthy growth, mdi Product total margin there has been a noteworthy pick-up, so to inhabit the in the household mdi sales 1 / 3 market share in Yantai Wanhua, its yield margins will be a quite large advance imagination.

According to Xinhua news April 18, the China Banking Regulatory Commission Chairman Liu Mingkang on the 18th in the 2009 Boao Forum for Asia annual meeting said that China’s banking sector withstand the financial crisis, has maintained a steady growth.

Liu held at the association, “the seek for economic discovery, openness and balanced regulation,” sub-forum, said non-performing borrowings of China’s banking part has been a very good balance of command, capital adequacy ratio on the increase, banks a good rate of come back, the development of the banking part is healthy.

He said that in 2008 industry-wide earnings of China’s banking part come to 583.4 billion yuan, setting a world record for the largest earnings development overhead 30%, but furthermore the world’s first. Industry-wide come back on capital come to 17.1 percent.

The participants are afraid about the subject of non-performing advances of China’s banking subdivision, Liu said that the first quarter of this year, China’s banking subdivision non-performing advance rate was only 2.04 out of 100, a diminish of the end of last year more than 0.38 percentage points. Balance of non-performing advances, exemplifying a diminish of 10.77 billion yuan last year. In his scenery, this effects in a extensive advance in advances made under the contributing elements, and not not hard to draw close by.

Recently, the world’s most famous summit of one of the technology industry – 2009 Spring Intel Developer Forum (Intel Developer Forum, IDF) in Beijing. Intel’s senior vice president Anand in the IDF statement, the theme that the market is still growing the future notebooks, Intel will continue to increase investment in this area.

Anand said that China is the world’s biggest wireless telephone market, a capacity of more than 600 million is the Department, at the identical time it is the world’s biggest market of Internet users, about 275 million users, while the PC market is 2 million. With the Internet development in this market, as well as smartphones, MID wireless Internet apparatus, for example promise development space, Anand said that the Chinese market to sustain self-assurance in the firm.

In outlook of the wireless Internet market, the fast development of Intel Corporation in 2007 and the whole open source community Moblin designs to launch, pursued by a large number of Intelreg; Atom Intel reg; Ling Dynamic processor at the centre of the Internet (NETBOOK) and Mobile Internet Device (MID ) have arrive out in succession. Moblin designs for these apparatus presents a mighty expertise stage to support the functioning scheme in order that data and electrical devices goods become one of the major forces of the market. From the Moblin v1 to v2, Anand said in the keynote talk, Moblin v2 client know-how will be founded on the Moblin v1 be substantially improved. Moblin v2 present ecosystem extends to elaborate, there are more than 100 programs providers in support of the Moblin ecosystems, the number of development continues. It is not a static number, there will be a growing number of vendors to support the Moblin. Moblin is actually hosted in the Linux Foundation, which will encourage the Linux open source cipher and the discovery and growth.

Intel’s Moblin v2 is based on the reg; Ling Dynamic Optimization processor platform and the core Linux operating system software stack. This platform will enable mobile devices to graphics performance and battery life increases capacity. The platform can be used not only in the MID and NETBOOK, but also can be extended to the automotive infotainment platforms and embedded devices. Therefore, Moblin v2 than the previous version of the core stack to make a more substantial improvement. Moblin v2 to the core operating system has made major improvements, an increase of MID and NETBOOK needed to optimize power management to extend battery capacity. For the MID, NETBOOK vehicle information and entertainment needs of network equipment to China Unicom to expand performance, and even supports the latest 3G technology. Furthermore, the increase in a variety of mobile devices need drivers. Moblin v2 core stack Another major change is to give up the use of the previous version of the Hildon Application Framework, which enables to improve the main screen of the Moblin v2 application design and graphical interface design with greater flexibility. Moblin v2 for the design of the main screen and graphical interface has the following four options: Flash Interface: The Adobe AIR platform as the foundation for the browser from the operating system running Flash, developers can use Flash as the program interface design colorful graphical interface dynamic graphical interface. Html Interface: Html files directly to the main screen as the operating system or application graphical interface, developers can design a variety of Internet access graphical interface. Clutter interface: Clutter is OpenGL-based 3D animation graphics library to provide easy-to-use object-oriented interface. The library will be applied to the 3D animation of the procedure based on the 2D layout of the interface access to a wealth of 3D effects and better performance. GTK Interface: GTK is the mainstream Linux system interface graphical interface, a rich interface, good performance and fast development.

Moblin v2 gives a full suite of development implements employed in all characteristics of portable development in. The principle elements for Mobile Image Creator 2 (MIC2). MIC2 and NETBOOK can bring ahead multiple MID podium photograph Moblin v2. Developers can run through the simulated surroundings Moblin v2. Operating procedures and to deduce their own applications. MI2C in USB drives and other inventions to bring ahead a type of pursuits in the photograph and fit photograph, in order that self-developed running procedure or requests for paid job running on portable devices.

Moblin v2. Is a version of mobile Linux community. Generally speaking, it is to improve the Linux kernel, adding a revolutionary desktop clutter 3D framework, integration, etc. A large number of mobile application software. Moblin v2 and Midinux relationship can be used Fedora community version and enterprise version of RHEL to analog. In other words, software vendors and developers can develop their own based on the Moblin v2 release of the operating system, all the release agreement must comply with the GPL open source, and software vendors through customized services and generate a profit, this model is the open source software model. At present, well-known enterprises such as the Linux software, Novell, Canonical, WinRiver, Linpus, such as Moblin have joined the scheme. Moblin v2 developers in China is a historical opportunity of enormous benefit, currently at the forefront of this field is China’s national software enterprises successful software and Red Flag. Moblin is a new generation development platform for mobile Internet terminal. With the next generation of 3G and the rapid development of Internet technology, wireless broadband technology will be widely used in various fields. By the Moblin open-source advocate, represents the characteristics of mobile software development.

Vietnamese Prime Minister Nguyen Tan Dung and component of the Political Bureau of the CPC Central Committee, assistant of Guangdong Provincial Party Committee Wang Yang joined the “Vietnam – China (Guangdong) Business Forum.” Forum, the pertinent sections of Guangdong Province and Vietnam noted some memorandum of cooperation.

Nguyen Tan Dung said in his speech in 2008, Vietnam and the Guangdong import and export trade in the international financial crisis under the impact of rising trend, 37 percent growth, but the results achieved with the economic and trade cooperation is still not commensurate with the potential.

He in addition said that Viet Nam is looked frontwards to GDP expansion this year from 5 to 5.5%, Vietnam is self-assured that depart past the annoyances after probable to uphold the development and consignment to investors in China to give better financial endeavour environment.

Guangdong Governor Huang Huahua met with a banquet in honor of Nguyen Tan Dung and his entourage. Huang Huahua, raised hopes in a meeting with the Vietnamese in the energy resources, investment and key projects to strengthen cooperation in three areas. Nguyen Tan Dung made for Huang Huahua agreed with the direction of cooperation and said that in Guangdong this year, Vietnam will export 20 million tons of coal, the Vietnamese Government would not coal mining in the country and export restrictions. Nguyen Tan Dung also said that it hoped to establish cooperation with the Guangdong Provincial Co-ordinating Committee.

Since the financial crisis, global oil demand has been flagging. From the beginning of this year, including the International Energy Agency, the U.S. Energy Information Administration and OPEC forecast, including the three major organizations are the latest oil supply and demand report, world oil demand this year is expected to fall again, fall record low.

Since the financial crisis, global oil demand has been flagging. From the beginning of this year, including the International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and OPEC forecast, including the three major organizations are the latest oil supply and demand report, world oil demand this year is expected to fall again, fall record low.

The three bureaus let down oil demand

Energy Agency is commonly founded on international GDP development outlook for oil demand, and not too long before, the International Monetary Fund (IMF) considerably decreased the outlook of international GDP, said the international finances to shrink this year, up to 1% for the first time since World War II contradictory development, last modified development outlook of 0.5%.

A note, the world’s foremost power forecasting bureaus have let down this year’s international oil demand forecast.

Published in the newest IEA monthly report that international oil demand outlook down to 83.4 million barrels / day, for 29 years to fall the large-scale, the number is the smallest 5-year values. Among them, the evolved nations, demand for oil this year, dropped 4.9 per hundred last year, evolving nations may be the first time since 1994 emerge down turn in demand for crude oil.

In January this year to April, IEA for 2009 worldwide oil demand is looked frontwards to to progressively descent, descent of 430,000 barrels / day, down 1 million barrels / day, down 1.2 million barrels / day, as well as the descent in the freshly liberated 240 million barrels / day. “At present, the step of worldwide monetary recession comparable to the early 80s of last century.” IEA said in its report.

Not only that, regardless of 14 months EIA4 short-term power outlook issued as pessimistic IEA said, but pulled down by financial down turn, which will extend in 2009 on international oil demand approximates smaller than the March number 180,000 barrels per day.

OPEC furthermore in a couple of days before for the first 8 months of this year to slash its international oil demand forecast. OPEC said world oil demand in 2009 approximates will be a every day decrease of 430,000 barrels a day, decreased to 84.18 million barrels / day. Last month, OPEC forecast world oil demand this year will be decreased by 1.2%.

Is the principle source of the worldwide monetary downward spiral

Forecast for the identical three foremost organisations of international oil demand will be the major origin of down turn attributed to the economic urgent position conveyed about by the international financial downturn.

OPEC, in its monthly oil market that the international financial worsening proceeded to inhibit development in oil demand, particularly in inhibiting the United States, Japan and China’s oil demand growth. Industrialized nations, oil demand will down turn this year, while oil demand in evolving nations may be a minor increase.

IEA accepts as factual that the world’s biggest oil buyer the United States, power demand is considerably smaller demand for crude oil this year, the major cause, but has been glimpsed as motors of international power in China and other appearing markets, have furthermore started to display indications of decline.

Energy consumption as the world’s major powers, the United States in the fourth quarter of 2008 the economy will shrink by 6.3 percent, about the worst performance in 25 years. Economists expected the first 3 months are also the weak performance of the economy, some economists expect the economy contracted by 4 ~ 5%. President of the United States, notwithstanding the recent Obama and the issue of Federal Reserve Chairman Ben Bernanke on the U.S. economic outlook optimistic assessment warmer, but many economists have been questioned.

The IEA report predicts that China is likely to usher in 2009 for the first time in 19 years a drop in demand of crude oil, the rate will reach 1%. And other emerging economies, oil demand was reduced by 0.1%.

IEA said in the report, comprehensive in January and February written knowledge, the prevailing Chinese oil demand over the matching interval plunged 6.9%. In this view, some skilled population trust that: “January and February of the descent in oil demand, on the one hand, the consequence of monetary critical purpose, a general descent in the production vegetation running rate, slower expansion in the petrochemical industry. On the other hand, taking into account the goods produced element in the Spring Festival break from work plants . ”

In addition, the General Administration of Customs of China released data show that China’s March crude oil imports of 3.86 million daily barrels, more than the imports in February increased 33 percent. This is also China’s crude oil imports hit a high of over the past year, only in March last year, the highest point of the 17.3 million tons less 960,000 tons.

Recovery in demand as early as next year

Three forecasting administration in the report in addition when oil use is envisaged to change the tide.

In mid-March, New York oil costs in 50 U.S. dollars this year on the first return. IEA considers that the fresh rebound in crude oil is due to more elements, but the greatest determination element in oil costs is still deliver and demand, and the carrying on worldwide monetary fault in the short time span will not change on the worldwide oil demand is looked frontwards to pessimistic.

The EIA furthermore said that international oil provide as OPEC decreased oil output to decrease considerably counteract by the international financial recession initiated by down turn in oil demand effect. EIA professionals, the latest down turn in oil charges OPEC to constrain yield and to a unassuming rebound in prices. EIA furthermore advised that the influence of international financial worsening, the United States mean cost of crude oil this year is approximated to be 53 U.S. dollars a barrel, if the finances retrieve its up tendency in 2010, then oil charges will increase to round 63 U.S. dollars a barrel.

Low in the international oil utilisation, the OPEC constituents will obey firmly with the output designs have been announced. OPEC’s report displays that in March by the output quotas of the 11 OPEC constituents to decrease output in February more than 245,000 barrels a day, still higher than the aim of 720,000 barrels of high yield. OPEC acquiesced in March in the implementation rate of 83 per hundred, while the chronicled mean grade of about 60%. Market participants have said that “the implementation of the rate of 60 per hundred is much higher than the chronicled mean grade of OPEC may be the implementation of the design is the best performance.”

Moreover, OPEC’s point of view also in the event of changes, more and more people believe that oil prices rose to around 50 U.S. dollars a barrel has become a compromise price, producers can meet demand, they can fight hard with the economic recession of the consumer were acceptable. Therefore, it is generally considered the market, OPEC production agreement is unlikely to further improve the degree of implementation.

Published monthly IEA report also forecasts the global economy and demand for crude oil in 2010 will it be possible to recover, as the last century, the early 80’s for 4 years decline in demand for crude oil will not occur.