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    [Plastic] Too many chemical projects, overcapacity will appear

    • Last Update: 2022-01-18
    • Source: Internet
    • Author: User
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    According to forecasts, the output value of China's single country chemical industry will reach 50% of the global chemical output value around 2030 .

    Chemical industry

    At the 2020 China Petrochemical Industry ESG Summit Forum held on December 27, Huang Yinguo, Consulting CEO of China National Chemical Information Center, said that China is now the world’s largest chemical producer, with chemical output value accounting for approximately 36% of the world’s total, but ChemChina The industry still faces challenges such as resource competitiveness and overcapacity.

    Huang Yinguo said at the forum that although China ranks first in the world’s chemical output value by region, unlike other regions in the world, today’s upstream chemical production is still dominated by fossil energy.
    In addition, China’s Rich in coal, but in the case of low global oil prices, the conversion rate of coal is not competitive.

    Another big challenge comes from upstream resources.
    Huang Yinguo said that there are too many large chemical industries (projects).
    There will be a large amount of overcapacity around 2025, and overcapacity will lead to environmental protection and other problems.
    This requires the chemical industry to continue to encourage green development paths and put ESG (Environmental , Social society, Governance corporate governance) transformed into corporate competitiveness.

    Huang Yinguo reminded that the import and export balance of the chemical industry chain is worth noting.
    Take the
    plastic industry chain in the chemical industry as an example.
    About 50% of the plastic products in the plastic industry chain are exported.
    In the anti-globalization cycle, if the export of this part of the plastic is restricted, it means that 50% of the plastic products are It cannot be consumed in China.


    "It is predicted that China's single country chemical output value will reach 50% of the global chemical output value around 2030.
    How to achieve carbon neutrality under relatively high energy consumption conditions is a big challenge for China.
    " Huang Yinguo said , Transforming sustainable development into competitiveness may be an important support for the competition in the chemical industry in the next five years.

    According to Jie Yubin, director of the China National Chemical Information Center, “During the cleanup and rectification of chemical parks that began in 2016, the number of chemical parks in some provinces has gone from a few hundred to a dozen.
    It is also declining by a cliff.
    In the process of cleaning up, the most important part of the score is the current environment and safety status of the company and the ability to protect the future environment and safety.
    ” Therefore, the level and disclosure of ESG will become the process of survival of the fittest.
    The core factor of the petrochemical industry’s implementation of ESG is the need for its own development.

    According to Chang Jiwen, deputy director of the Resource and Environmental Policy Research Institute of the Development Research Center of the State Council, safe manufacturing, green manufacturing and intelligent manufacturing are the three main themes in the future industrial field, but green development is still the petrochemical industry, especially the fine chemical industry.
    One of the major shortcomings.

    Based on this, Chang Jiwen believes that in order to follow the path of green transformation with Chinese characteristics, the petrochemical industry must deeply participate in the industrial division and cooperation of the Belt and Road countries, especially the neighboring RECP countries, expand the attraction of green investment, and prevent the emergence of industrial product exports.
    Risks in turn affect the process of domestic green production transformation.
    During the "14th Five-Year Plan" period, the petrochemical industry should take urban agglomerations, large river basins and regions as the unit to propose optimization measures to realize resource sharing and complementary advantages, and prevent low-level repeated investment and disorderly competition.

    (Keywords: Chemical Plastics)

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