Two Sessions Hot Spot: Petrochemical Industry Usher In New Spring

The revitalization plan has attracted the attention of Representatives and members of the two sessions in Beijing.

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The representatives and members of the system believe that this plan is one of the measures for macro regulation and control according to the changes in the domestic and external situations, and is also a "direction instrument" for the sustained and healthy development of the petrochemical industry. It is aimed at resolving the impact of the current international financial crisis on the petrochemical industry, and focusing on the structural adjustment and industrial upgrading of the petrochemical industry, with a view to enhancing competitiveness and viability.

There are more primary chemical raw materials with high energy consumption and low added value and over reliance on exports.

Especially the international market that has not yet bottomed out.

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Industry has caused tremendous impact, product prices have fallen severely, and the number of loss making enterprises is increasing.

As of November 2008, China's petrochemical industry lost 14.9% of its total industry.

Under the background of the spread, refining and processing and export environment has also undergone significant changes.

Some countries continue to set up trade barriers, the export threshold for products has been continuously improved, and the demand for external market has decreased, and many chemical raw materials are unsalable.

In addition, due to the increase in labor costs, some chemical downstream processing bases may face adjustment, and market development is facing new problems.

Moreover, the petrochemical industry is widely involved, and the development of other related industries has also been significantly affected.

The prices of raw materials such as coal and coal have dropped, and the cost of production costs has been reduced, but it is still difficult to offset the impact of shrinking market demand, low oil prices and declining sales.

Yang Jigang, NPC deputy and general manager of Daqing Petrochemical Co, revealed in an interview with reporters.

Faced with the continuation of the financial crisis, the challenges faced by the petrochemical industry are still continuing.

The representatives and members of the petroleum system generally believe that the abrupt change of internal and external situation has both challenges and opportunities for the petrochemical industry.

Under the joint action of favorable policies and other factors, enterprises can adjust market strategy in time according to the changing situation, prepare for the rainy day, temper the muscles and bones, and accumulate thick and thin hair.

Petrochemical products, especially bulk petrochemical raw materials, are priced globally. The sharp fluctuations in international oil prices cause the petrochemical market to oscillate sharply.

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The economic weakness is still continuing, and oversupply may continue for a certain period of time.

Moreover, in the coming years, with the large scale international and domestic large-scale chemical plants being put into operation, the products will be relatively concentrated. Although domestic demand will grow in the medium to long term, the growth rate may slow down, which will lead to intensified market competition.

Some representatives and members believed that petrochemical enterprises could clearly see their outstanding problems under the "crisis", thus providing "pressure" for strengthening basic management and promoting low cost strategy.

Enterprise vision must be outbound, through the benchmarking analysis with the advanced level at home and abroad, to identify its own gap, to determine the rectification goal, and to keep the enterprise's vision in the direction, and to deepen the analysis of business activities and grasp the main contradictions, so as to solve the deep-seated and prominent problems affecting development.

Nowadays, China's petrochemical enterprises are developing more or less new projects.

These projects will form large capacity in the next few years and will greatly enhance the total increment of China's petrochemical products.

Under the premise of guaranteeing the quality of the project, enterprises should further adhere to strict investment control in engineering design and technology introduction, and rationally and scientifically reduce the cost of the project so as to make today's investment a benefit for tomorrow rather than a burden.