Analysis of the global petrochemical industry market

China Suppliers


Experienced a crisis in 2009, chemical companies have great expectations for 2010.

For most chemical enterprises, as the global financial crisis spread to the real economy, companies have experienced in the last year, a series of challenges.

In early 2009, subject to two important end-market downturn on the construction and automotive industries, most of the demand for chemical products fell to the lowest level in 5 years. With the economy in recession, companies on the one hand rapid reduction in inventory, the other waiting for further decline in raw material prices. Product prices and sales dropped sharply at the same time a serious impact on corporate earnings. First quarter of 2009, all chemical companies have experienced financial difficulties, those in highly leveraged companies in the financial state of the College Entrance Examination or face death. micaceous iron oxide

With the stabilization of commodity prices, since the second quarter of 2009, phasing out large-scale enterprises to inventory operations, and began to appropriate additional inventory to stimulate demand recovered. The global economy has bottomed out in 2009, the agency reports and year-end projections that the global economy has shown signs of recovery, rebuilding stock trades will lead to growth in demand for chemicals in 2010. v2o5

The performance of different end-market demand ferric oxide

2010, the Middle East, Asia and other petrochemical production capacity growth will inevitably lead to global overcapacity. However, the chemical industry, not all chemicals by 2010 the demand will increase, because the performance of different end markets. In accordance with the economic recession in the different performance of related industries can be classified into four categories: first, not by the economic downturn affected industries such as pharmaceutical and food industries, these have been relatively strong market demand, thus serving two industry, production of pharmaceutical intermediates and food additives will continue to maintain the momentum of growth; Second, the industry standard, they earlier in the recession bottomed out and demand as companies rebuild inventories has been restored, such as semiconductors and petroleum products ; Third, the new normal trade, that is, from going through a big adjustment, after which the industry is expected to return to growth, such as car industry and construction; 4 is a Fusu potential industry, which has just recently bottomed out in 2010, when the demand for stock rebuilding will return to the industry, such as consumer durables, computers, electronic equipment and clothing industries. Which has the potential recovery of the fourth sector there is a big variable in 2010, they changed into standard or industry, or into a new industry norm.

Similarly, in 2010 the area of chemical demand conditions are also quite different. Over the past 10 years, China's market demand for ethylene annual growth rate of above 10%, while in developed regions, demand growth rate of less than 2%. Since 2009, emerging economies than developed countries, a greater impact on the crisis, which will enable the developed countries and emerging economies, further widening the difference in growth rate.

Global overcapacity

Despite the emerging economies to maintain a higher market growth rate, productivity growth because the growth rate far exceeds the demand, local competition between manufacturers will be inevitable. This competition will make 2010 the global petrochemical overcapacity situation is more serious, at the same time will accelerate the pace of restructuring of the chemical industry, and to promote changes in the global chemical industry pattern.

Who have no plans new plant construction and commissioning of the developed areas, the merchants have been produced in the region must Jin Xing Xin market pattern optimizes Zu He, Er Chixu the only Qiang Gai Bian Zi Chan restructuring of ownership relations device, but also make a number of Gongsijinru insolvency proceedings. 2010 European low-cost Middle East petrochemical products by the impact of imports of the most serious, because in North America for the low-cost imports have been set up trade barriers - high logistics costs and profitable natural gas condensate (NGL) sets Lee tool, which will produce in the region to provide more protection.

Can be expected in the future of Asia and the Middle East with the manufacturer's products in the global market share rising, their talent developed regions will be more attractive to the introduction of more advanced technology to consolidate the position in the world.

Promote the reorganization and integration crisis

Before the recession in the global petrochemical prices from rising sharply since the turn of the century, manufacturers of chemicals used to increase the company's business lines each year. Experienced the economic recession, industry performance is no longer a convergence of different areas will have a different trajectory, the growth rate in developed regions will be lower than in previous years, price fluctuations will become the norm, increasingly fierce global competition.

Competition likely to lead to industry consolidation, those less competitive faced with shutting down the old plant's fate. And other industries, the chemical industry has experienced unprecedented economic difficulties, and will continue to face challenges. Because the service area the terminal market and different chemicals will be the future demand conditions were mixed. In the process, some obvious advantages of chemical companies will win.