13-09-2014, 09:22 PM
(13-09-2014, 03:46 PM)budgetier Wrote: I bought some Sunsine shares a few months back when the prices of rubber accelerators were much lower than they are now. Am wondering whether the current prices have already reached all-time high with the prospects of no significant increases in the near future or can we expect further spikes to come. Wld appreciate the views of members. Thank you.
2Q 14 accelerator ASP of RMB 20,400/tonne is still lower than the level (RMB 21,200) before the price cut in 4Q 2011:
2Q 11…..21,300
3Q 11……21,200
4Q 11...19,600 (Price cut)
1Q 12……18,800
2Q 12……18,900
………………………..
4Q 13……18,200
1Q 14……19,300
2Q 14…...20,400
Price of aniline, the major raw material of accelerators, was lower in 2011 (around RMB 10,000 per tonne). If aniline price then were at 2014 level (of around RMB 11,000) and pollution controls were strictly enforced, 2011 ASP would have been much higher than RMB 21,200.
2Q 14 ASP of RMB 20,400 is not high, and profit upside is possible in the coming quarters.