US stock 5 times of circuit breaker set a history, chemical giants have reduced their spending, China's chemical industry may usher in opportunities!

U.S stocks fell on Tuesday, with the S & P 500 index down more than 7% and trading on hold for another 15 minutes This is also the fourth time in two weeks After another trading, the three major stock indexes continued to explore, and the S & P 500 index fell nearly 10% at one time, erasing all the gains since trump took office The US stock market affects global finance After the U.S stock market plummeted, the stock markets of Brazil, Australia, Thailand and other countries have plummeted, and even triggered a fuse! Brazil 's IBOVESPA index fell 12.5% at the beginning of trading, triggering a circuit breaker; Israel' s Tel Aviv benchmark index fell 8%, trading was suspended for 30 minutes; the Toronto stock exchange triggered the circuit breaker mechanism of the primary market; Australia 's stock market fell 9.7%, the biggest drop since June 1992; the stock markets of the Philippines, India, Thailand and other countries fell more than 5%, and South Korea fell more than 3%; Japan fell 2.5% and India's Sensex index expanded to 7% Europe, which has a large number of chemical giants, faces the risk of economic recession In addition to the U.S stock crash, the three major stock markets in the European market all fell sharply The FTSE 100 index in the UK fell 4.01%, the CAC40 index in France fell 5.75%, and the DAX index in Frankfurt, Germany fell 5.31% In response, European Central Bank President Christine Lagarde said: the new crown epidemic will trigger a European economic downturn similar to the 2008 financial crisis With the number of confirmed cases increasing, Europe has become the center of the global epidemic Italy's industrial center and economic center were affected by the epidemic, the whole region was blocked and shut down, which had an impact on Italy's production and manufacturing, and also caused the supply fault of some industries The Italian industrial zone is just the tip of the iceberg in Europe In Europe, there are chemical giants and famous chemical enterprises in Switzerland, such as Amance chemical (polyamide material), Sika (chemical building material product), Clariant (catalyst, pigment), ekon (Global silicon material) in Norway The sales of the whole EU in 2018 accounted for 16% of the world's total, only second to China, and it is one of the important production bases in the global chemical industry It is reported that 29% of the EU's chemical exports are external, and the main market for exports is Asia If the spread of the epidemic leads to large-scale production stoppage in Europe, it will affect the global chemical industry chain and cause industry chain fault DuPont: it is expected to cut costs by more than $90 million Despite the surge in demand for DuPont protective clothing due to the new epidemic, DuPont still lowered its sales guidance target for the first quarter of 2020 and the whole year DuPont said at the JPMorgan industrial conference that sales in the first quarter are expected to be $5 billion to $5.1 billion, compared with the previous guidance target of $5.1 billion to $5.2 billion According to the impact of the new crown epidemic in the first quarter, the annual sales volume in 2020 is expected to be 21.3 billion to 21.8 billion US dollars, compared with the previous forecast of 21.5 billion to 22 billion US dollars DuPont said it was unable to quantify the impact of the new crown outbreak beyond the first quarter At the same time, DuPont is looking for more ways to cut costs than previously estimated at $90 million In China, 12 of DuPont's 13 plants are in operation, and only Wuhan is still shut down Nine of the operated Chinese plants are at full capacity and the rest have recovered more than 70% DuPont said logistics in China is improving and the company will continue to monitor supply DuPont's plants in Japan and South Korea are also at full capacity, while those in Italy are declining Exxon Mobil: plans to slash spending Exxon Mobil said it hopes to slash spending due to the market impact of the new crown epidemic and the fall in commodity prices "Based on this unprecedented environment, we are evaluating all appropriate measures to significantly reduce capital and operating expenses in the near future," said Darren woods, ExxonMobil chairman and CEO When the plan is finalized, we will outline it " The novel coronavirus epidemic situation is being closely monitored by Exxon Mobil Corp, and the work arrangements are adjusted to ensure a healthy working environment and support the communities in which they operate Solvay: it plans to cut costs by 350 million euros Solvay, the Belgian chemical group, said that the new crown epidemic, Boeing 737 Max shutdown and weak economic outlook will have a negative impact on its core earnings Solvay forecast EBITDA of 0-3% this year and said it would fall by a high single digit in the first quarter alone The company said it expects 25 million euros to be affected by the new crown outbreak in the first quarter of this year, adding that it will update its outlook as the situation develops further In 2019, Solvay's EBITDA was EUR 2.32 billion In addition, Solvay also provides composite materials for Boeing 737 Max aircraft Now, due to the shutdown of Boeing 737 Max aircraft, Solvay is expected to lose 30 million to 40 million euros in 2020 Boeing produced 737 Max aircraft in 2019, after Solvay predicted that Boeing would produce 200 737 Max aircraft Solvay said it is still confident of achieving a median annual growth in basic EBITDA between 2020 and 2024 Solway also said plans to restructure the materials, chemicals and solutions business last year would raise the medium-term cost reduction target by at least 350 million euros, compared with the previous target of 300 million to 350 million euros LG Chem: postpone the battery business split plan LG Chem, a Korean Chemical Company and battery manufacturer, is considering delaying the separation of its key battery sector as the number of new coronavirus infections continues to rise in South Korea and other major economies, the company said on Monday "LG Chem decided to suspend the spin off of the company's battery business, given the growing obstacles and uncertainties facing the company," said an official familiar with the matter While coronavirus is affecting all aspects of its business, the company's long-term growth opportunities remain LG Chem's battery business is considered to be a very promising future growth engine for the entire group LG Chem supplies batteries for General Motors plug-in hybrid electric vehicles such as the volt It is also one of Tesla's top battery suppliers Given its strong growth and market potential, LG Chem plans to create a comprehensive division of cell phones and electric vehicle batteries to keep its new business alive LG Chem is also said to have an initial public offering at the time of the spin off as a large-scale financing activity to maintain the battery business However, LG Chem still relies on its petrochemical products, and the chemical industry is not booming in many aspects The coronavirus is having an impact on the U.S auto industry, which could disrupt parts supply or model production China's chemical industry or usher in opportunities?!
But fortunately, China's powerful anti epidemic measures and means make China a country that returns to work in an orderly manner With various subsidy support policies, China's market is recovering, which also gives hope to the major international chemical giants Europe has been occupied, Japan and South Korea have been occupied for a long time, and the U.S shares have been fused five times Under the heavy pressure of the epidemic, only China can become the hope of major chemical giants! Bob Patel, chief executive of lyondelba sell industries, said: "in China, our composite equipment has returned to full capacity We know from our employees in Asia that business is starting to return to normal " Howard Ungerleider, Dow's chief financial officer, said he saw signs of a return to economic activity in China "The vast majority of our plants in China are operating, and some are operating continuously to balance demand and logistics constraints, although capacity has not been fully restored." Anglaide estimates that the company's first quarter revenue in China will be affected by $400 million, profits will be affected by $100 million He added that a slowdown in the rest of the world could have an additional $100 million impact on profits In an interview with CNBC television, Jim fittering, CEO of Dow, said that in the past two weeks, China's demand for the company's products has rebounded and increased, the Chinese market has sent out positive signals, and the United States should also be confident in economic recovery It can be seen that in the next period of time, China's chemical industry may face opportunities We hope that major chemical enterprises will seize the opportunities, develop and grow, and do a good job in epidemic prevention at the same time!