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Low oil price aggravates overcapacity chemical industry needs transformation and upgrading

wallpapers News 2020-11-18
The advent of

era of low oil price has made petrochemical industry obtain cheaper raw materials, but it has aggravated the embarrassment of overcapacity of low-end chemical industry in China. Experts believe that China's chemical enterprises need to promote technological innovation seek transformation development. The

of Hebei Petroleum Industry Chamber of Commerce have fallen sharply since the second half of last year. Compared with last year's high, the oil price has dropped to the "waist cut" level. The impact of low oil price on the chemical industry is different: the price of raw materials in the petrochemical industry is falling, but the chemical industry of coal chemical industry, biomass chemical industry other raw materials is facing impact. This paper is from

of Hebei Petroleum Industry Chamber of Commerce. Taking coal chemical industry as an example, Li Jiaming, director of enterprise management consulting of Deloitte, said that there was a view that coal to olefin project would be profitable as long as the international oil price was no less than us $50 per barrel. In fact, considering various cost factors, coal chemical projects usually make money when the international oil price is higher than $80 per barrel. At present, the international oil price has dropped to around $40-50 per barrel. In the long run, low oil prices will be a new normal, which has brought a huge impact on the coal chemical industry. The follow-up investment in coal chemical industry should be carefully considered.

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for the traditional petrochemical industry, although low oil price reduces the cost of raw materials, the embarrassment of overcapacity in China's petrochemical industry is becoming more more serious. The content is from

of Hebei Petroleum Industry Chamber of Commerce. In the past ten years, China's economy has been growing rapidly, there is a huge dem for basic chemicals. A large number of large petrochemical projects have been put into construction. According to the data of National Bureau of statistics, from 2003 to 2013, China's chemical industry investment increased by 113 times, with an average annual growth rate of 28.5%. However, with the slowdown of domestic economic growth, the overcapacity of basic chemical industry, the sudden drop of product prices, the low unit operating rate the poor business efficiency of enterprises. Li Runsheng, vice president of China Petroleum Chemical Industry Federation, said that domestic economic growth slowed down, economic downward pressure continued, dem for petrochemical products weakened. In this context, the contradiction of structural overcapacity in China's petrochemical industry is highlighted, the traditional industry has entered the era of low profit, so the task of transformation upgrading structural adjustment is very arduous.

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in spite of this, in the view of experts, although the low-end chemical products have overcapacity, China is still an eye-catching chemical consumer market in the world. With the steady development of economy rapid urbanization, China still has a huge dem for medium high-end petrochemical products.

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Li Jiaming said that China's chemical industry started late, coupled with the large gap of early basic chemical products, attracting a large amount of capital into the production of low-end products. With the transformation development of economic structure, the problem of resource allocation dislocation in China's chemical industry is becoming more more prominent, with low-end products flooding, while high-end products rely heavily on imports.

"at present, the biggest challenge facing China's petrochemical industry is the lack of innovative technology supply." Guan Yang, the managing partner of Deloitte China chemical industry, believes that the transformation upgrading of China's petrochemical industry must rely on technological innovation, promote adapt to the trend of diversification of raw materials, develop apply advanced applicable technologies, then optimize adjust the traditional petrochemical industry.

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Guan Yang said that at present, Japanese enterprises have begun to take the initiative to reduce low-end production capacity reposition to focus on the production of high-end products. Chinese enterprises should shut down some uncompetitive production capacity increase new capacity cautiously. In addition to production technology innovation, in today's digital era, enterprises can use digital technology to enhance marketing responsibility care, promote business model innovation innovation. In addition, to guide the rationalization of investment in chemical industry realize the efficient allocation of funds is also an effective way to promote the transformation upgrading of the industry.


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