The China’s petrochemical industry is predicted to gradually rebound and see stable development in 2020, with necessity to carry on supply-side reforms amid external challenges, according to the China Petroleum and Chemical Industry Federation (CPCIF) on Tuesday.
Statistics show that the sector’s operating income totaled 12.27 trillion yuan, up 1.3 per cent year on year, while the profit decreased to 14.9 per cent to 668.37 billion yuan, the profit declined mainly in fertilizers, basic chemicals and oil refining areas, according to Fu Xiangsheng, vice president of CPCIF.
CPCIF predicts that the total petrochemical industry revenue for 2020 will increase five per cent year on year, with the revenue of chemical industry surging seven per cent and the profit will increase eight per cent.
In 2020, the apparent consumption of crude oil and natural gas are predicted to increase by 5.5 per cent and seven per cent year on year, respectively and that of refined oil products to grow about three per cent, the apparent consumption of chemical fertilizers will be at the same level of or slightly lower than the previous year.
Fu mentioned that the industry should pay high attention to the problem of overcapacity, especially for PX, ethylene and polyethylene products, of which the production capacity has increased significantly in recent years, and it’s expected to reach saturation globally in future.
He said facing that, approvals of new and expanded oil refining projects and new PX and ethylene projects will be strictly controlled starting from this year, except for national key bases and projects planned.
Fu also mentioned that CPCIF would be completed by the end of this year, also serve as guideline for the industry’s development during the 2021-2025 period.