The latest report issued by the China Petroleum and Chemical Industry Association recently pointed out that the recovery of the current economic performance of the petrochemical industry has become increasingly evident, but it still faces more challenges and difficulties. The momentum of recovery is still unstable, unconsolidated, and unbalanced.
Industry is still in the doldrums
The report mentioned that in August, the pace of economic recovery in the oil and chemical industries has accelerated markedly as the domestic macro economy has been improving. Product output increased in an all-round manner, and the decline in output value further narrowed; demand for some major bulk products continued to rise, prices remained stable, and investment in the chemical industry maintained rapid growth. However, in some industries, the utilization rate of production capacity is low, the petrochemical market continues to be sluggish, exports are blocked, and some industries with overcapacity have excessive investment growth are still plaguing the industry.
The report said that despite the overall increase in production of major petrochemical products in August, demand continued to rise, and prices of some products continued to rise, but the overall downturn in the petrochemical market did not change significantly, the overall price decline continued to expand, the market demand is still effective Relatively insufficient. The total price index of more than 1,000 major petrochemical products announced by the National Bureau of Statistics for the month was 81.33, a decrease of 1.2 percentage points from the previous month. The chemical product price index was 83.5, 0.7 percentage points higher than the previous month, and continued to explore.
The utilization rate of some industries is still low and idle. Although the output of some industries is increasing, the inventory also increases. For example, as of the end of July, the nitrogenous fertilizer industry's production enterprises' urea inventories amounted to 1.837 million tons, an increase of 143.8% year-on-year; the inventory of diammonium phosphates in the phosphate fertilizer industry reached a record high, reaching 1.81 million tons, an increase of 116.8% year-on-year; The inventory of other products is also high.
Some industries with excess capacity have grown too fast. In the first 8 months, the investment in phosphate fertilizer and compound fertilizer industry increased by 85.4% and 65% respectively year-on-year; the investment in the paint industry rose by 39%; the pesticide industry increased by 30.1%; the rubber product industry increased by 31.2%. In addition, the pace of energy expansion in the coal chemical, soda ash, chlor-alkali and other industries is still accelerating. The report believes that the above situation will undoubtedly bring serious pressure on the industrial restructuring of the industry and will also slow the recovery of the industry.
Before August trade friction last year
In addition, the recent international trade friction against China's chemical products tends to expand frequently, making the already severe export situation worse. As of August this year, China's chemical industry encountered a total of 14 cases of trade frictions, which exceeded the number of cases last year. Among them, 5 new anti-dumping investigations were initiated, 3 were anti-dumping investigations, 1 was anti-subsidy case, and 5 were safeguard measures (including 3 special safeguards and 2 general safeguards).
Statistics show that from January to August, the export delivery value of the whole industry fell by 22% year-on-year. Among them, the basic chemical raw material manufacturing industry decreased by 29.7%; the fertilizer industry decreased by 26.5%; pesticides decreased by 39.3%; and the synthetic material manufacturing industry decreased by 35.7%. According to the analysis, the export situation of the whole industry will not be greatly improved during the year.
The report pointed out that at present, oil and chemical industry companies should seize the favorable opportunity to speed up industrial and product structure adjustments, increase the elimination of backward production capacity, and step up efforts to increase core competitiveness.
Industry is still in the doldrums
The report mentioned that in August, the pace of economic recovery in the oil and chemical industries has accelerated markedly as the domestic macro economy has been improving. Product output increased in an all-round manner, and the decline in output value further narrowed; demand for some major bulk products continued to rise, prices remained stable, and investment in the chemical industry maintained rapid growth. However, in some industries, the utilization rate of production capacity is low, the petrochemical market continues to be sluggish, exports are blocked, and some industries with overcapacity have excessive investment growth are still plaguing the industry.
The report said that despite the overall increase in production of major petrochemical products in August, demand continued to rise, and prices of some products continued to rise, but the overall downturn in the petrochemical market did not change significantly, the overall price decline continued to expand, the market demand is still effective Relatively insufficient. The total price index of more than 1,000 major petrochemical products announced by the National Bureau of Statistics for the month was 81.33, a decrease of 1.2 percentage points from the previous month. The chemical product price index was 83.5, 0.7 percentage points higher than the previous month, and continued to explore.
The utilization rate of some industries is still low and idle. Although the output of some industries is increasing, the inventory also increases. For example, as of the end of July, the nitrogenous fertilizer industry's production enterprises' urea inventories amounted to 1.837 million tons, an increase of 143.8% year-on-year; the inventory of diammonium phosphates in the phosphate fertilizer industry reached a record high, reaching 1.81 million tons, an increase of 116.8% year-on-year; The inventory of other products is also high.
Some industries with excess capacity have grown too fast. In the first 8 months, the investment in phosphate fertilizer and compound fertilizer industry increased by 85.4% and 65% respectively year-on-year; the investment in the paint industry rose by 39%; the pesticide industry increased by 30.1%; the rubber product industry increased by 31.2%. In addition, the pace of energy expansion in the coal chemical, soda ash, chlor-alkali and other industries is still accelerating. The report believes that the above situation will undoubtedly bring serious pressure on the industrial restructuring of the industry and will also slow the recovery of the industry.
Before August trade friction last year
In addition, the recent international trade friction against China's chemical products tends to expand frequently, making the already severe export situation worse. As of August this year, China's chemical industry encountered a total of 14 cases of trade frictions, which exceeded the number of cases last year. Among them, 5 new anti-dumping investigations were initiated, 3 were anti-dumping investigations, 1 was anti-subsidy case, and 5 were safeguard measures (including 3 special safeguards and 2 general safeguards).
Statistics show that from January to August, the export delivery value of the whole industry fell by 22% year-on-year. Among them, the basic chemical raw material manufacturing industry decreased by 29.7%; the fertilizer industry decreased by 26.5%; pesticides decreased by 39.3%; and the synthetic material manufacturing industry decreased by 35.7%. According to the analysis, the export situation of the whole industry will not be greatly improved during the year.
The report pointed out that at present, oil and chemical industry companies should seize the favorable opportunity to speed up industrial and product structure adjustments, increase the elimination of backward production capacity, and step up efforts to increase core competitiveness.
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