Chemical industry to curb excessive growth

According to the analysis report of the China Petroleum and Chemical Industry Association, in the first two months of this year, China's petroleum and chemical industries have performed well and the production growth rate has dropped, showing a trend of “decrease in value”; the effect of the national macro-control policies has further manifested itself. The industry’s excessive growth momentum has been initially contained.
In the first two months of this year, the growth of crude oil slowed down significantly, natural gas growth accelerated, and the production of refined oil (gasoline, kerosene, and diesel) continued to grow steadily and rapidly. Affected by disaster weather and demand, the growth rate of fertilizer production slowed down significantly, and pesticide production continued to maintain a relatively rapid growth, but the growth rate slowed down. Due to factors such as product structure adjustment, rising production costs, and slow domestic and international demand, the growth rate of major bulk chemical products fell sharply across the board. Statistics show that the growth rate of ethylene production fell by 23.3% year-on-year, the growth rate of pure benzene production dropped by 46% year-on-year, the growth rate of methanol fell by 29%, the increase of synthetic resin output decreased by 26.6 percentage points year-on-year, and the increase of synthetic fiber output decreased by about 10% year-on-year. percentage point.
During the same period, the growth of key "two high and one capital" products continued to slow. The growth rate of sulfuric acid production decreased by approximately 8 percentage points year-on-year, that of caustic soda production decreased by 8.4 percentage points year-on-year, that of calcium carbide fell sharply by 27.1 percentage points year-on-year, and that of synthetic ammonia production was 8.189 million tons, which represented a year-on-year decrease of 1.3%.
In February, the overall demand for oil and chemical markets was strong, and production and sales were well connected. The price rise of major basic inorganic chemical raw materials remained strong, the prices of organic chemical products generally showed a downward trend, and the increase in fertilizer prices accelerated. Of the 174 chemical products that were tracked, there were 118 kinds of increase in the year-on-year rate, accounting for 67.82%; there were 3 types, which accounted for 1.72% of the year-on-year prices, and 53 types, which accounted for 30.46%, of the year-on-year prices.
At present, the pressure and resistance of the chemical industry are increasing. On the one hand, the rigid rise in energy and raw material prices has exerted pressure on prices of chemical products. On the other hand, the digestion capacity of downstream companies is limited, and the chemical industry is facing a grim situation in which cost pressures are increasing sharply and downward transfer costs are huge.
According to industry insiders, the current situation facing the chemical industry is an inevitable trend of the development of the national macro-control policy, and it is also an inevitable result of industrial industrial restructuring. Enterprises should have a clear understanding of this, should focus on internal, through structural adjustment, technological progress, management innovation, efforts to reduce raw materials, power consumption, reduce production costs and improve their own competitiveness.

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