Wind power industry
GWEC Releases the 2020 Global Offshore Wind Report
The Global Wind Energy Council (GWEC) recently released the "2020 Global Offshore Wind Energy Report," predicting that global offshore wind power capacity will surge from 29.1 GW at the end of 2019 to over 234 GW by 2030, driven by exponential growth in the Asia-Pacific region and continued strong growth in Europe. By then, China is expected to surpass the UK to become the country with the largest cumulative installed capacity of offshore wind power in the world (58.8 GW).
The report found that 2019 was the best year ever for the offshore wind power industry. Thanks to technological advancements and supportive policies, global new offshore wind power installations reached 6.1 GW, bringing the global cumulative installed capacity to 29.1 GW. For the second consecutive year, China's new installations ranked first globally, reaching a record 2.4 GW, followed by the UK (1.8 GW) and Germany (1.1 GW). In terms of cumulative installed capacity in 2019, the UK still maintained the highest level (9.7 GW), followed by Germany (7.5 GW), China (6.8 GW, excluding data from Taiwan), and Denmark (1.7 GW).
Since 2013, the global offshore wind power market has grown by an average of 24% annually. As of the end of 2019, Europe remained the largest offshore wind power market, accounting for 75% of the global total installed capacity. The region remains a focal point for global offshore wind power industry growth, aiming to achieve an ambitious 450 GW installation target by 2050, led by countries such as the UK, Netherlands, France, Germany, Denmark, and Poland.
The Asia-Pacific and US markets are accelerating and will be significant growth areas over the next 10 years. Calculations indicate that China and the Asia-Pacific region will be key drivers of growth over the next decade.
The report shows that over the next 10 years, the offshore wind power industry will create 900,000 jobs if offshore wind power is included in economic recovery development strategies. In addition, 1 GW of offshore wind power can reduce 3.5 tons of carbon dioxide emissions, making it the most effective large-scale power generation technology for emission reduction and replacing fossil fuels in many regions.
The report suggests that despite the impact of the COVID-19 pandemic on international markets, offshore wind power development is positive, and new installations in 2020 are expected to be on par with 2019. Offshore wind power is seen by governments worldwide as a major driver of post-pandemic economic recovery.
China's new offshore wind power installations increased by 208% in the second quarter of this year.
In the second quarter of this year, with the continuous advancement of resumption of work and production, the growth rate of China's wind power and photovoltaic installations increased by 61.2 and 36.9 percentage points respectively compared to the previous quarter, and the newly grid-connected scale of offshore wind power increased by 208% year-on-year.
In the second quarter of this year, the growth rate of China's wind power and photovoltaic installations rebounded significantly. Among them, new wind power installations increased by 12.3% year-on-year, and new capacity increased by 12.5% year-on-year in the first half of the year. As of the end of June, the cumulative grid-connected capacity of offshore wind power nationwide increased by 63.4% year-on-year; photovoltaic new installations increased by 12.9% year-on-year, distributed photovoltaics increased by 9.2 percentage points year-on-year, the cumulative proportion increased by 0.2 percentage points quarter-on-quarter and 1.5 percentage points year-on-year, maintaining a steady growth trend.
In the first half of the year, the cumulative power generation of wind power and solar energy increased by 13.7% year-on-year, and the cumulative power generation ratio increased by 1.5 percentage points year-on-year to 11.0%, the power generation ratio steadily increased, and the role of new energy green electricity substitution continued to strengthen. In the second quarter of this year, the growth rate of electricity consumption across the country turned positive, which helped to steadily increase the proportion of new energy power generation. Among them, the utilization rate of wind power and photovoltaic power generation increased by 2.0 and 0.7 percentage points year-on-year to 96.8% and 98.6% respectively, and the amount of abandoned wind and solar power decreased by 36.2% and 24.3% year-on-year respectively, and the consumption situation continued to improve.
The development and layout of wind power and photovoltaics continue to be optimized. In the second quarter, new wind power grid connections in central and eastern China and southern China accounted for 55.4% of the national total. At the same time, the cumulative proportion of wind power installations in central and eastern China and southern China reached 30.8% of the national total, an increase of 1.7 percentage points year-on-year; as of the end of June, the cumulative proportion of distributed photovoltaics nationwide increased by 0.2 percentage points compared with the previous quarter and 1.5 percentage points year-on-year, maintaining steady growth.
According to the prediction of the National New Energy Consumption Monitoring and Early Warning Center, in the second half of this year, new wind power installations will continue to maintain steady growth in the third quarter, and photovoltaic installations are expected to accelerate in the third quarter due to the construction cycle of subsidized projects; the wind speed and total horizontal plane radiation in most parts of the country show a decreasing trend with the month; the new energy consumption situation in the "three northern" regions is expected to further improve; central and eastern and southern regions need to pay close attention to the contradiction between water, wind, and light consumption during the flood season.
 

Steel
July Steel PMI Shows: Steel Market Operating Steadily, Future Outlook Relatively Positive
The steel PMI in July was 49.2%, down 0.1 percentage points from the previous month, indicating relative stability in the steel industry. The sub-indexes show a slowdown in steel production growth, relatively tight market demand, a continued upward trend in raw material prices, and a decline in corporate procurement activities. However, businesses have a positive outlook for the future. It is expected that in August, market demand may be released, steel mills will maintain an upward trend in production, and steel prices may fluctuate upward. Overall, in July, the downward trend in market demand eased, but it remained tight overall. Steel mill production maintained an upward trend, with a slowdown in growth. Prices of both raw materials and finished products rose. However, steel mills and society are optimistic about the future.
Stainless Steel Crude Steel Output Down 2.74% Year-on-Year in First Half of Year
In the first half of 2020, the national output of stainless steel crude steel decreased by 393,100 tons year-on-year, down 2.74%. Among them, the output of Cr-Ni stainless steel decreased by 165,800 tons year-on-year, down 2.35%, and its share increased by 0.20 percentage points year-on-year to 49.42%; the output of Cr-Mn stainless steel (including some products that do not meet international standards) decreased by 297,100 tons year-on-year, down 6.35%, and its share decreased by 1.21 percentage points to 31.39%; the output of Cr stainless steel increased by 71,900 tons year-on-year, up 2.86%, and its share increased by 1.01 percentage points to 18.54%; the output of duplex stainless steel decreased by 2,102 tons year-on-year, down 2.25%.
In terms of import and export, in the first half of 2020, the national import of stainless steel decreased by 43,600 tons year-on-year, down 6.41%; the export of stainless steel decreased by 85,100 tons year-on-year, down 5.01%.
In terms of apparent consumption, in the first half of 2020, the national apparent consumption of stainless steel decreased by 270,500 tons year-on-year, down 2.27%.
 

Composite Materials
In-depth Analysis of the Fiberglass Industry: Cherishing the Present, Planning for the Future
Industry entry barriers exist, and the growth rate of new production capacity is slowing down
The fiberglass industry has a high entry barrier and high industry concentration, with the top five global companies accounting for 64% of production capacity and the top six Chinese companies accounting for 80%. 2018 was a year of concentrated production capacity investment in fiberglass. From 2018 to 2019, domestic fiberglass production increased by 15%/13%, leading to oversupply. The growth rate of fiberglass production capacity will decline in the future, with an estimated growth rate of 7.5%/3.3% in 2020-2021.
High export proportion, awaiting demand recovery after the improvement of the overseas epidemic
Fiberglass has a wide range of applications, mainly concentrated in the construction and transportation industries, and is greatly affected by the macroeconomic environment. The global fiberglass demand growth rate is approximately 1.6 times the GDP growth rate. In 2020, affected by the overseas epidemic, domestic fiberglass exports were hindered. The global fiberglass demand growth rate is expected to be -8.3%/6.7% in 2020-2021, and the Chinese fiberglass demand growth rate is 1.6%/11%. Fiberglass demand is expected to improve in 2021.
Weak supply elasticity, prices have fallen to near cost
After the fiberglass production line is put into operation, it needs to be continuously produced for 8-10 years, and it is difficult to reduce the load and adjust the output in the middle, so the supply elasticity of fiberglass is weak. When demand improves, due to the rigidity of supply, the price elasticity is large upwards; when demand declines, the kiln cannot be shut down, leading to increased inventory. When the inventory increases to a certain extent, price reduction and inventory reduction will occur. Currently, the price of coarse sand has fallen to the cost line of some enterprises, and further price declines will lead to the shutdown of production capacity by some enterprises, achieving supply contraction.
Prices are at the bottom of the cycle, laying out the release of elasticity after demand improves
Due to the ongoing overseas epidemic and some new production lines will be put into operation in the third and fourth quarters of 2020, the industry's supply and demand situation is unlikely to improve significantly, and the price of coarse yarn will remain at the bottom. It is expected that in 2021, the domestic fiberglass industry's supply growth rate will be 3.3%, and the demand growth rate will be 11%, and the industry's fundamentals are expected to improve, and there is a possibility of a price increase for fiberglass.
Composite materials have become popular 5G antenna cover materials
The massive growth of 5G base stations will simultaneously drive a significant increase in the application of components such as PCBs, antenna resonators, and antenna covers. With its unique performance advantages such as low dielectric constant, high thermal conductivity, and electromagnetic shielding, composite materials will gain development benefits in the 5G field.
Massive growth in PCBs, PTFE is highly regarded
In 5G base stations, printed circuit boards (PCBs) will be widely used as the most basic connecting devices. In the early stages of 5G construction, the increased demand for PCBs is directly reflected in wireless networks and transmission networks, with a greater demand for PCB backplanes, high-frequency boards, and high-speed multilayer boards.
Upstream raw materials for PCBs mainly include copper foil, fiberglass cloth, and other chemical materials including PTFE. Fiberglass cloth, as a reinforcing material, plays a role in insulation and increasing strength; special resins, as filling materials, play a role in bonding and improving the performance of the board.
For base station PCBs, the most important indicators are dielectric properties, signal transmission speed, and heat resistance. PTFE substrates have good performance in the first two aspects. It is the best dielectric material found so far, and its excellent dielectric properties are conducive to the fast and complete transmission of signals. From this perspective, PTFE is the preferred resin material for 5G base station PCB boards. Currently, the main manufacturers of PTFE include Chemours, Daikin Industries, Arkema, 3M, Deqing Kosa, Zhejiang Juhua Group, etc.
Composite materials are used for antenna covers and base station housings
For antenna covers, the material is required to have good electromagnetic wave penetration characteristics, strong mechanical properties to withstand harsh environments, and insulation, corrosion protection, and lightning protection.
Under the 5G trend, high-performance composite materials have become popular antenna cover materials. Composite materials can provide insulation, corrosion protection, lightning protection, anti-interference, and durability, and have very good wave penetration effects.
For base station housings, traditional 4G base stations are large tower-shaped, while 5G base stations are characterized by being small and lightweight, so composite materials can also be used for construction. Composite materials have the advantages of easy processing, strong performance, and light weight.
For example, Covestro has developed polycarbonate and its mixed materials suitable for 5G base station housings. According to Covestro, polycarbonate is strong, lightweight, has good frequency tuning permeability, and is suitable for injection molding.
Some specifications of the material also show good weather resistance or thermal conductivity, or are suitable for two-component injection molding and laser direct structuring (LDS).
 

Logistics
China's logistics industry prosperity index was 50.9% in July
In July, China's logistics industry prosperity index was 50.9%, down 4 percentage points from the previous month; China's warehousing index was 53.5%, up 2.8 percentage points from the previous month. In July, affected by seasonal factors, China's logistics industry prosperity index fell significantly from the previous month, but it is still in the expansion range, showing that logistics business activities continue to maintain steady growth.
Seven departments including the National Development and Reform Commission issued a document to further clean up and regulate charges at seaports
The National Development and Reform Commission, the Ministry of Finance, the Ministry of Transport, and seven other departments recently jointly issued the "Action Plan for Cleaning Up and Regulating Charges at Seaports." The Action Plan proposes that by 2022, a scientific, standardized, and transparent port charging mechanism will be basically formed, port service efficiency will be further improved, the business environment will be significantly improved, and the compliant costs of imports and exports will be significantly reduced.
The Action Plan points out: First, the policy of reducing the charging standards for cargo port dues and port facility security fees by 20% and extending it to December 31, 2020, will be implemented in the future. At the same time, port charging items will be further reduced and merged, and research will be conducted on merging port facility security fees into port operation package fees. Second, research will be conducted to promote the reform of cargo port dues. Encourage shipping companies to reasonably adjust the structure of sea freight charges, standardize and simplify charging items, cancel unreasonable surcharges, and strictly implement the freight rate filing system. Third, improve the system of charging catalogs and lists. Further strengthen the system of charging catalogs and lists, comprehensively sort out and standardize the existing lists, and dynamically adjust them to ensure that the lists match the actual situation and that there are no charges outside the lists. Explore the establishment of a national seaport charging and service information release platform based on the international trade "single window," to centrally publicize the charging and service information of each link at various seaports, making it easier for cargo owners to compare and choose and for social supervision.
 

Real Estate
Multiple indicators of the land market in 300 cities fell in July
The China Index Academy released the July national land market transaction intelligence for 300 cities. Overall, multiple indicators of the supply and demand sides of the land market fell month-on-month in July.
From the supply side, land supply in 300 cities shrank by nearly 20% month-on-month, with supply in cities of all tiers decreasing compared to the previous month, and residential land supply falling by nearly 30% month-on-month. In July, the 300 monitored cities saw a 24% month-on-month decrease and a 5% year-on-year increase; the area of land launched decreased by 16% month-on-month and increased by 14% year-on-year. Among them, residential land (including residential land and comprehensive land including residential land) decreased by 26% month-on-month and decreased by 1% year-on-year; the area of land launched decreased by 29% month-on-month and increased by 2% year-on-year.
From the transaction side, the total transaction volume decreased month-on-month, with the largest decrease in first-tier cities, and residential land transactions decreased by nearly 20% compared to the previous month. A total of 300 cities saw a 7% month-on-month decrease and a 12% year-on-year increase in land transactions; the area of land transacted decreased by 11% month-on-month and increased by 15% year-on-year. Among them, the number of residential land transactions decreased by 20% month-on-month, and the transaction area decreased by 22% month-on-month.
In terms of land transfer revenue, the total amount of land transfer funds in 300 cities decreased month-on-month and increased by nearly 10% year-on-year. Among them, Nanjing ranked first in terms of revenue. The total amount of land transfer funds in 300 cities decreased by 19% month-on-month and increased by 7% year-on-year. Among them, the total amount of residential land transfer funds decreased by 20% month-on-month and increased by 9% year-on-year.
From the perspective of land prices, the overall average price decreased both month-on-month and year-on-year. However, the average price of residential land increased slightly compared to the previous month, and the average price in first-tier cities increased by more than half month-on-month and year-on-year. The average floor price of land transactions in 300 cities decreased by 7% month-on-month and 3% year-on-year; among them, the average floor price of residential land transactions increased by 4% month-on-month and 8% year-on-year.
In terms of premium rate, the land premium rate in 300 cities remained high in July, with the average premium rate basically remaining flat month-on-month and increasing by 2 percentage points year-on-year. The average land premium rate in 300 cities was 15%, an increase of 0.3 percentage points compared to the previous month and an increase of 2 percentage points compared to the same period last year; among them, the average premium rate for residential land was 17%, a decrease of 0.4 percentage points compared to the previous month and an increase of 2 percentage points compared to the same period last year.
National Real Estate Development Investment and Sales Situation from January to July 2020
According to the "National Real Estate Development Investment and Sales Situation from January to July 2020" released by the National Bureau of Statistics, from January to July, national real estate development investment increased by 3.4% year-on-year, an increase of 1.5 percentage points compared to the period from January to June; the sales area of commercial housing decreased by 5.8% year-on-year, a decrease of 2.6 percentage points compared to the period from January to June; and the sales value of commercial housing decreased by 2.1% year-on-year, a decrease of 3.3 percentage points compared to the period from January to June.
National real estate development investment increased by 3.4% year-on-year
From January to July, national real estate development investment increased by 3.4% year-on-year, an increase of 1.5 percentage points compared to the period from January to June. Among them, residential investment increased by 4.1%, an increase of 1.5 percentage points.
From January to July, the area of land purchased by real estate development enterprises decreased by 1.0% year-on-year, an increase of 0.1 percentage points compared to the period from January to June; the amount of land transactions increased by 12.2%, an increase of 6.3 percentage points.
From January to July, the funds in place for real estate development enterprises increased by 0.8% year-on-year, compared to a decrease of 1.9% from January to June. Among them, domestic loans increased by 4.9%; foreign investment utilization increased by 29.9%; self-raised funds increased by 3.3%; deposits and advance payments decreased by 3.4%; and personal mortgage loans increased by 6.6%.
In July, the real estate development prosperity index was 100.09, an increase of 0.24 points compared to June.
The decline in commercial housing sales continued to narrow, with monthly sales falling by 30% month-on-month.
From January to July, the sales area of commercial housing decreased by 5.8% year-on-year, a decrease of 2.6 percentage points compared to the period from January to June. Among them, the sales area of residential housing decreased by 5.0%, the sales area of office buildings decreased by 21.8%, and the sales area of commercial business premises decreased by 18.8%. The sales value of commercial housing decreased by 2.1% year-on-year, a decrease of 3.3 percentage points compared to the period from January to June. Among them, the sales value of residential housing increased by 0.4%, the sales value of office buildings decreased by 22.2%, and the sales value of commercial business premises decreased by 22.3%.
At the end of July, the area of commercial housing for sale decreased by 3.9 million square meters compared to the end of June. Among them, the area of residential housing for sale decreased by 3.17 million square meters, the area of office buildings for sale decreased by 0.14 million square meters, and the area of commercial business premises for sale decreased by 0.18 million square meters.
 

Intelligent Manufacturing
Analysis of Driving Factors for the Development of China's Unmanned Economy in 2020: Capital Synergy
Recently, 13 departments including the National Development and Reform Commission issued "Opinions on Supporting the Healthy Development of New Business Models and Activating the Consumer Market to Drive Employment Expansion", proposing to develop a "driverless economy" based on new technologies, promote cost reduction and efficiency improvement in production, circulation, and services, and push the driverless economy to the forefront. At present, driven by factors such as the gradual disappearance of labor cost advantages and continuous technological progress, China's driverless economy is developing rapidly.
Driving Factor 1: The rapid development of digital technology
The driverless economy uses artificial intelligence, big data, the Internet of Things, and the mobile Internet as a link to achieve all-round docking between people and things and things and things. The driving force behind it is the innovation of digital technology. It can be said that technology is one of the main driving forces behind the rise of the driverless economy.
At present, China has become a major digital economy country in the world. The domestic Internet of Things industry chain and industrial system have been initially formed, with a market size exceeding 1.3 trillion yuan.
Driving Factor 2: Rising labor costs and high wages
With economic development, China's demographic dividend advantage is rapidly disappearing, and the labor structure is gradually changing. The rise in labor costs has a greater impact on commercial activities with high labor costs. The unmanned business model complements the decline in the demographic dividend, which can maintain stable development to a certain extent and improve service capabilities and levels with the help of high technology.
Driving Factor 3: Consumption upgrade is a necessary condition for the development of the driverless economy
Since the reform and opening up, the supply and demand relationship in China's consumer market has been constantly changing, and three consumption upgrades have occurred since 1978. At present, the post-80s and post-90s generations are gradually becoming the main force in the consumer market, and the pursuit of speed, convenience, fashion, and individuality is a common characteristic of this generation of consumers. The rapid development of the driverless economy is a reflection of consumers' upgraded demand for convenience and diversity.
Driving Factor 4: Policy is a key factor in promoting the development of the driverless economy
Driven by technological innovation, new economic models are constantly developing. At present, the driverless economy is in its bonus period, with high market participation, and the state has successively introduced a series of policies to support the healthy development of the driverless economy.
Driving Factor 5: The capital market is an important force driving the development of the driverless economy
The development and implementation of technological innovation cannot be separated from the support of capital. The development of the driverless economy is the result of the interaction between policy and market, and capital penetration is an important driving force for the updating and iteration of the driverless economy. When driverless retail emerged, financing exceeded 4 billion yuan in just one year. In addition, driverless driving, robots, and drones are also areas with a large influx of capital.
Development Dynamics and Trends of China's Civil Unmanned Aerial Vehicles
Recently, the Civil Aviation Administration of China released the "2019 Report on the Development of China's Civil Unmanned Aerial Vehicles." The report shows that the development of China's civil UAV industry is strong, with significant growth in UAV products, enterprises, and scale. At the same time, application fields are constantly deepening, and the trend of industrial upgrading is accelerating.
According to the report, by the end of 2019, the market size of China's civil UAV market increased by more than 56% year-on-year. At the same time, industry enterprises and products increased by about 76% and 37% year-on-year respectively; and the total number of UAV pilot licenses increased by more than 50% year-on-year, with remarkable development achievements.
In addition, the application of UAVs in aerial photography, agricultural plant protection, industry inspection, police security, remote sensing mapping, logistics express delivery, emergency rescue, and personal entertainment is also steadily developing. In particular, the applications in aerial photography, agricultural plant protection, industry inspection, and land and resources surveying and mapping have become the main application areas of civil UAVs, making a huge contribution to the market.
Among them, aerial photography is currently the most widely used field. More than 43% of domestic manufacturers are engaged in the production of professional aerial photography UAVs, with DJI, ZeroTech, and Autel occupying the top three positions in terms of aerial photography UAV market shipments. Currently, the annual compound growth rate of the aerial photography UAV market has reached nearly 80%.
Agricultural plant protection is another favored application area. At the same time, land and resources surveying and mapping and industry inspection are also two major focuses of UAV applications. Currently, there are more than 300 surveying and mapping units nationwide with aerial photography qualifications, using more than 2,000 UAVs. As one of the main application areas of UAV industry inspection, the market size of power inspection is expected to reach nearly 3 billion yuan by 2020.
The report summarizes several major trends in the future development of civil UAVs: UAV logistics has become a key development area, industry-level UAVs continue to grow; UAV training is becoming increasingly popular; the development of UAV networking and heavy-duty UAVs, and the separation of R&D, production, and operation of UAVs.