2011 aniline market will go from here

The turmoil in the economic situation at home and abroad in 2010, the debt crisis in Europe, inflation, and the continued domestic interest rate hike expectations all brought shocks to the chemical market. The aniline market entered a relatively high profile in 2010 after experiencing a severe setback in 2008 and a recovery in 2009. Almost all of the profit for the year remained high, and after May, the profit remained basically above 200 yuan. However, with the gradual production of new production capacity, the existing overcapacity situation in the aniline industry has become more prominent. At the same time, the downstream industry is also developing. Therefore, the development trend of the aniline market in 2011 has attracted more attention from related industries.

The latest report from the Business Club shows that since 2007, the excess rate of aniline industry has been on an overall increasing trend, and by 2010, the excess rate of the aniline industry will be close to 50%. Aniline production technology is not high, and the difficulty is relatively small, not high value-added products. At the same time, profits of the aniline industry have increased in recent years, and more and more manufacturers have been induced to join in the production of aniline. The aniline industry seems to be in hot pursuit. In 2008, the industry utilization rate of aniline production enterprises in China was 37%. In 2009, it was 65%. In 2010, it was 75%. The operating rate of enterprises has risen sharply. However, as downstream markets, the demand for aniline in the market for MDI industry has been further reduced, and it is huge. Excessive production capacity is nowhere to be released, resulting in a short-term sluggish market. The aniline market is fiercely competitive and some companies will gradually be eliminated from the market. Therefore, the shrinking of high profits is an inevitable trend.

At present, the focus of the future development of aniline should be accurately positioned: in the face of a substantial increase in the subsequent supply, seeking to export is a positive road. At the same time, we must earnestly inspect investment in new projects to avoid blindly putting into production devices due to short-term high profits. Develop supporting downstream, actively explore the market, stabilize the development of the aniline market, and avoid vicious competition.

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