In September, the price of Sinochem Xinwang.com touched a high of 12,000 yuan/ton, but now it has dropped to 9,000 to 9100 yuan/ton. *** The market, like the current weather, is a bit cold.
The growth of production capacity far exceeding the growth rate of consumption is the main reason for the sharp decline in prices. The process is simple, and the market is good. Everyone will go all the way. This makes the capacity of this year's *** expand from 150,000 tons to 320,000 tons, which has more than doubled. With the import of 100,000 tons, the market supply far exceeds the digestion capacity of 280,000 tons of demand.
In 2011, there were 6 production lines in China, including Jiande Jianye Organic Chemicals 30,000 tons, Texas Detian Chemicals 10,000 tons, Zhejiang Xinhua Chemicals 60,000 tons, and Jiangsu Yancheng Subao 60,000 tons. The market consumption has only increased by about 8%. In addition to imported products, the proportion of oversupply in China’s products in 2011 was as high as 50%, of which imported products accounted for 35.7% of the domestic consumer market, which seriously impacted the domestic market.
Excessive production capacity caused vicious competition. This year, *** production enterprises generally underemployed, in a loss state, the original leader of the oil Jinzhou Petrochemical *** operating rate of less than half this year. And in the short term, the situation in which China's *** market is brutally fighting will not change. Jinzhou Petrochemical, which has the largest production capacity in China, is only 10 tons. The annual production capacity of Shell Chemicals in foreign companies is 480,000 tons. The annual production capacity of ExxonMobil Chemical Company in the US is 380,000 tons. The annual production capacity of the Dow Chemical Company is 280,000 tons. The annual production capacity of Sasol Olefin and Surfactants is 230,000 tons. Due to the fact that most of the new projects in China are too small, they do not have economies of scale and are unable to withstand such fierce competition. Once prices rise, *** companies will be more difficult.
From the trend of the next year, the domestic market is not optimistic. First, foreign large companies such as Shell, Dow Chemical, Exxon Mobil, LG, and Japan's new petrochemical companies are eyeing the Chinese market. Second, Taiwan products that are more competitive than the mainland have entered the mainland and are exempt from taxes; Capacity continues to expand rapidly. For example, Zhejiang Xinhua Chemical Co., Ltd. plans to open a new plant with an annual capacity of 60,000 tons in Yancheng, and Supor plans to cooperate with Sinochem International to expand its production capacity to 120,000 tons. The domestic consumer market is unlikely to change significantly in the short term. With several factors superimposed, next year and a few days later, the price war in the Chinese market will be inevitable, and the winter period may not be too short.
To successfully weather the cold winter, we must solve the problem of excess production capacity, open up new application areas, and expand consumer demand. This should be the only way out. Compared with developed countries, the application of *** in China has not been effectively developed in many fields. For example, *** has a strong bactericidal capacity, the scope of disinfection is the same as that of ethanol, the bactericidal power is better than that of ethanol, and it is used in skin and medical care. Disinfection of the device can also be used for the disinfection of prostheses. In some countries, *** is the most widely used disinfectant in beauty salons, but it is rarely used in our country. Only pay attention to the application development of ***, in particular to strengthen the application research in the fields of electronics industry, surface coating solvents, deoiling solvents for lubricants, cleaning agents for electronic industries, disinfectants for public places, daily chemical products, and resin production. To promote work and promote consumption growth, the spring of the *** will come soon.
The growth of production capacity far exceeding the growth rate of consumption is the main reason for the sharp decline in prices. The process is simple, and the market is good. Everyone will go all the way. This makes the capacity of this year's *** expand from 150,000 tons to 320,000 tons, which has more than doubled. With the import of 100,000 tons, the market supply far exceeds the digestion capacity of 280,000 tons of demand.
In 2011, there were 6 production lines in China, including Jiande Jianye Organic Chemicals 30,000 tons, Texas Detian Chemicals 10,000 tons, Zhejiang Xinhua Chemicals 60,000 tons, and Jiangsu Yancheng Subao 60,000 tons. The market consumption has only increased by about 8%. In addition to imported products, the proportion of oversupply in China’s products in 2011 was as high as 50%, of which imported products accounted for 35.7% of the domestic consumer market, which seriously impacted the domestic market.
Excessive production capacity caused vicious competition. This year, *** production enterprises generally underemployed, in a loss state, the original leader of the oil Jinzhou Petrochemical *** operating rate of less than half this year. And in the short term, the situation in which China's *** market is brutally fighting will not change. Jinzhou Petrochemical, which has the largest production capacity in China, is only 10 tons. The annual production capacity of Shell Chemicals in foreign companies is 480,000 tons. The annual production capacity of ExxonMobil Chemical Company in the US is 380,000 tons. The annual production capacity of the Dow Chemical Company is 280,000 tons. The annual production capacity of Sasol Olefin and Surfactants is 230,000 tons. Due to the fact that most of the new projects in China are too small, they do not have economies of scale and are unable to withstand such fierce competition. Once prices rise, *** companies will be more difficult.
From the trend of the next year, the domestic market is not optimistic. First, foreign large companies such as Shell, Dow Chemical, Exxon Mobil, LG, and Japan's new petrochemical companies are eyeing the Chinese market. Second, Taiwan products that are more competitive than the mainland have entered the mainland and are exempt from taxes; Capacity continues to expand rapidly. For example, Zhejiang Xinhua Chemical Co., Ltd. plans to open a new plant with an annual capacity of 60,000 tons in Yancheng, and Supor plans to cooperate with Sinochem International to expand its production capacity to 120,000 tons. The domestic consumer market is unlikely to change significantly in the short term. With several factors superimposed, next year and a few days later, the price war in the Chinese market will be inevitable, and the winter period may not be too short.
To successfully weather the cold winter, we must solve the problem of excess production capacity, open up new application areas, and expand consumer demand. This should be the only way out. Compared with developed countries, the application of *** in China has not been effectively developed in many fields. For example, *** has a strong bactericidal capacity, the scope of disinfection is the same as that of ethanol, the bactericidal power is better than that of ethanol, and it is used in skin and medical care. Disinfection of the device can also be used for the disinfection of prostheses. In some countries, *** is the most widely used disinfectant in beauty salons, but it is rarely used in our country. Only pay attention to the application development of ***, in particular to strengthen the application research in the fields of electronics industry, surface coating solvents, deoiling solvents for lubricants, cleaning agents for electronic industries, disinfectants for public places, daily chemical products, and resin production. To promote work and promote consumption growth, the spring of the *** will come soon.
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