Petrochemical Association reminds companies to be wary of excess capacity hidden in the industry's recovery

Although all the data released so far show that China's petrochemical industry is picking up under the influence of a series of national support policies, it is expected that the economic performance of the industry will achieve double-digit growth in the second half of the year. Recently, the petrochemical association stated that the contradiction between overcapacity in some industries is still present. In June, the operating rate of equipment for soda ash, caustic soda, calcium carbide, polyvinyl chloride, methanol, and phosphate fertilizers was approximately 83%, 83.4%, 78.4%, and 51.1%, respectively. 44%, 56%, the current local traditional production capacity relative surplus and the lack of new technology, new product innovation, the contradiction is still relatively prominent, the new project has concentrated areas, technology and products tend to equal issues. These problems have not caused sufficient vigilance by local governments and relevant departments. In the “Plant Industry Adjustment and Revitalization Plan” of more than a dozen provinces that have been announced, some places have planned the production of methanol, urea, polyvinyl chloride, and soda ash. If these plans are implemented, the issue of overcapacity will not only be solved, but may also be intensified.
Industry sources said that overcapacity will directly lead to a serious shortage of operating rate of enterprises. Therefore, at present, China's petrochemical enterprises must make up their minds to eliminate backward production capacity, resolutely control blind and redundant construction, actively promote scientific and technological progress, speed up the transformation of growth patterns, and improve the competitiveness of enterprises. Sustainable development capacity.

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