China Drying Network News recently, the Henan Provincial Government, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Petrochemical Industry Association have separately conducted research and discussed the industries in multiple meetings to carefully analyze the causes of commonalities and personalities. It is believed that in the overall situation, the products are extremely poor. Weaknesses, while others rise in a high profile, profits are mixed. The person in charge of the petrochemical enterprises in the province generally reflected that the industry as a whole is out of the difficulties, and both the internal and external forces must be mobilized at the same time. The government has increased macroeconomic control and policy support, and enterprises have adjusted their structure, changed their methods, and practiced internal strength.
Since 2012, the chemical industry in Henan Province has experienced a slowdown in market demand. The prices of major products have been low, while the costs have remained high. The growth rate of output value has slowed down significantly, the growth rate of investment in fixed assets in the industry has dropped, and the overall economic efficiency has declined. Although the current decline in overall profits tends to narrow, the efficiency of the petrochemical industry in the province is still falling.
According to Su Dong, secretary-general of the Henan Petrochemical Association, in the first half of the year, the overall situation of the Henan petrochemical industry has three salient features. First, the total output value and the growth rate of production of major products continued to slow down. There were 1289 petrochemical enterprises above designated size in Henan, and the cumulative output value in the first five months was 171.442 billion yuan, an increase of 15.2% year-on-year, but the growth rate was down 16.1 percentage points from the same period of last year. From January to May, the overall output of major petrochemical products in the province increased steadily, but the increase also declined. Of the 66 (class) products tracked, there were 39 kinds of year-on-year increase in output, and there were 25 kinds of declines. Second, although the rate of decline in economic benefits has shown a slowing trend, the decline rate of profits is still relatively large, and the losses of loss-making enterprises have kept a large increase. From January to May, profits of enterprises above designated size decreased by 10.6% year-on-year, and loss-making enterprises increased losses by 112.7% year-on-year, indicating that the overall economic benefits have not been fundamentally improved. Third, the growth rate of investment in fixed assets in the industry continued to decline. In the first five months, the actual investment of the Henan petrochemical industry was 33.675 billion yuan, an increase of 18.8% over the previous year, and the growth rate dropped by 32.7 percentage points. The project investment has slowed down significantly, indicating that the company holds cautious judgments on the market outlook.
Although the overall situation is slowing down and downturn, the different areas of the Henan petrochemical industry are different, and there are some bright spots in some areas. As in the first half of the year, the fertiliser industry in the province has a tremendous performance and the overall benefits are considerable. The urea market has a strong trend, production and sales are booming, and prices have risen sharply, setting a record high since 2009.
In the three major segments of the Henan petrochemical industry, the profits of the chemical industry fell by 6.2% year-on-year in the first five months; oil and gas production dropped by 36.2% year-on-year; the refining segment continued to lose money. However, the profits of five sub-sectors maintained year-on-year growth. The highest increase was in the rubber industry, with a profit of 1.483 billion yuan, a year-on-year increase of 24%; followed by the pesticide industry, with a profit of 272 million yuan, an increase of 22.3%; and a profit of 570 million yuan for the fertilizer industry. Yuan, an increase of 19.4%.
Analysis of the reasons for the formation of the current situation, both the impact of the adverse environmental factors, there are certain industries themselves need to be improved. According to chlor-alkali, coal chemical and other key enterprise executives, from the external factors, the high cost, and chemical product prices down, is the main reason for the decline in the efficiency of some industries, including electricity prices rose most prominent in Henan. The price of Henan caustic soda enterprises rose by 20% year-on-year at the end of May, and the price of electricity for fertilizer companies rose by 15.94%. On the other hand, due to the lack of market demand for some products, sales prices did not increase or even decline, resulting in a substantial decline in the efficiency of oil refining, soda ash, chlor-alkali industries. According to the feedback from the chlor-alkali business forum held by the provincial petrochemical association, caustic soda achieved profitability in the first half of the year, but the loss of polyvinyl chloride was greater. In the first five months, 7 backbone chlor-alkali production enterprises completed a total industrial output value of 4.555 billion yuan, a year-on-year decrease. 8.18%; Total profit was 1.51 million yuan, a decrease of 98.66%.
From the internal factors, the urgency of adjusting the structure and changing the mode is becoming more and more intense, which is mainly reflected in the three aspects of coal chemical industry upgrading, industrial chain extension of the chlor-alkali industry, and breakthrough in fine chemical technology. Faced with the grim situation, the chief executives of Henan coal chemical companies gradually realized that coal chemical industry should speed up the expansion of the expansion of the circle, take the connotation of the road to development, in the development of methanol downstream products on the technical breakthrough. The pressure on chlor-alkali chemicals is also very high. Sun Zhenfeng, general manager of Haohua Aerospace, stated: “The road to differentiate the consumption of chlorine products is imminent, and we need to reform the concept and go out to achieve a strong combination with the enterprises in the three provinces of Su, Henan and Shandong to achieve Cross-development.†The person in charge of the Henan Coal Chemical Coking Coal Company said: “We must work hard to build a chlor-alkali industry cluster, and coking coal companies focus on the chlor-alkali and polysilicon industries to develop the downstream new material industry and realize project linkages.â€
GuangDong DuBa New Material Technology Co.,LTD , https://www.dubachem.com