Three major reasons for global slowdown in petrochemical industry

wallpapers Industry 2020-12-09

news from the business agency shows that at the global petrochemical conference held recently in Dusseldorf, Germany, senior executives of the petrochemical industry from different regions gave the same signal that the pace of global petrochemical capacity expansion is slowing down. According to Abdula from SABIC, a big petrochemical country in the Middle East, the 1.2 million tons of ethylene and 2 million tons of ethylene originally planned to be put into production in 2016 and 2018, including Saudi Arabia, have been put on hold, while the medium and long-term plans for new production capacity three years later are not available. President Ennes of the European Petrochemical Union revealed that due to the increasingly strict supervision of petrochemical projects in Europe In recent three years, due to various factors, nearly 20 units have been planned to shut down, involving a production capacity of 10 million tons. Liu Xintian, editor in chief of chinachem.com, also pointed out in the report of the conference that the focus of China's petrochemical industry is structural optimization and upgrading, and the expansion of production capacity is no longer the focus in the 13th five year plan. The most promising market may be new coal chemical industry, but the current situation is not clear.

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have slowed down the pace of global petrochemical capacity expansion. Liu Xintian believes that there are three main reasons: first, China's economy is slowing down, and global emerging markets are in short supply. At present, although the global demand for petrochemical products is still growing, the growth expectation has been greatly reduced compared with that before. The average profit level of the petrochemical industry is gradually declining, and the willingness of enterprises to put into production is naturally reduced. Second, the global petrochemical capacity has been relatively surplus. The rapid growth of China in the past decade has greatly stimulated petrochemical enterprises at home and abroad, not only in China, the Middle East, Europe and the United States, Japan and South Korea They have made full plans around the big cake of China, and these plans are basically designed independently. China's own planning has already considered self-sufficiency, and the global total planning is obviously surplus. Third, major events in the petrochemical industry in recent years, such as shale gas revolution, crude oil collapse crisis, Ukraine natural gas crisis, China's new coal chemical industry revolution, etc, To a great extent, it has "destroyed" the original ecology and pattern of the global petrochemical industry, and a new order and new environment are being established. Global petrochemical enterprises are becoming more and more rational and prudent. Before the end of revolution and crisis, enterprises tend to wait and see.


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