Petrochemical industry trends Report for the next decade

Guan Yang, head of Deloitte's China chemical industry, believes that Chinese companies should resolutely shut down some hopeless and uncompetitive capacity, while the industry must also consider whether it should continue to add new capacity. The report mentions a phenomenon that the petrochemical industry has historically grown faster than GDP in both developed and developing countries. China's petrochemical industry grew by 8.3% in 2012 and 9.4% in 2013, while GDP grew by 7.8% and 7.7% in the same period. Nevertheless, due to the heavy investment in the past few years, and the varying acceptance and penetration of new technologies in various markets, the growth rate of different segments of the global petrochemical industry will vary. Li Jiaming, director of Deloitte China Enterprise Management Consulting, suggested that Chinese chemical companies should pay more attention to the increasing global trade flow and its impact on the supply and demand balance between different regions of the world. In terms of chemical raw materials, the report believes that advanced coal chemicals and biomass have potential, but also face challenges posed by various internal and external factors. Guan Yang explained: "Take coal chemical industry as an example, in the past, oil prices continued to rise, prompting enterprises to enter the field, China's coal chemical industry has been a considerable development. However, companies need to be aware of uncertainties such as fluctuating crude oil prices, environmental costs, logistics and transportation costs, and market paths."

2024/06/10 MetInfo