In the past one or two years, the prices of China's petroleum and chemical products can basically be described by the word “strongâ€. It can be said that most companies benefit greatly from strong prices. However, recent prices have shown a weak trend. Statistics show that throughout the first half of the year, the price fluctuations of major petrochemical products have intensified, and the downward trend has become more apparent. The 146 kinds of products that the China Petroleum and Chemical Industry Association focused on tracked showed that the prices in May fell by more than half from April to 78. At the same time, the prices of energy and raw materials such as coal and electricity have been rising, which has greatly increased the pressure on production costs in the entire chemical industry. Chemical companies are ready to deal with this price change?
After the rise in the past two years, the prices of chemical products have reached historical highs. Without appropriate corrections, there is a risk that investment in the whole industry will be overheated and prices will fall. As the chemical product market has been heating up in the past two years, investment has increased significantly and the characteristics of over-investment have been demonstrated. Taking methanol as an example, in response to waves of methanol booms set up around the country, relevant experts reminded that by 2010 China's total methanol demand was only 12.5 million tons. Faced with this situation, companies that are preparing to invest in methanol must now think clearly.
The potential surplus of methanol is a typical example. Although other chemical products are not so serious, investment overheating is almost reflected in various products, but only to varying degrees. The price of chemical products will decline in the second half of this year, but due to inertia, the decline will not be too great, and the days of the industry will be better. What is really dangerous is next year. If the results of macro-control can't reach the expected target and the regulation will continue, the days of the chemical industry will be more difficult.
From the perspective of the international and domestic environment, the economy is in a booming cycle in the past two years and the economic growth rate is relatively fast, which makes the demand for chemical products more prosperous. After the global economy and the momentum of China’s economic growth have begun to slow down, it can be said that the economic cycle of chemical products has come down.
When the business climate is high, the ratio between the enterprises is the size of the output and the size of the production load. When the business climate declines, the ratio between enterprises is endurance, which is the ability to control costs. We should be prepared for the latter.
After the rise in the past two years, the prices of chemical products have reached historical highs. Without appropriate corrections, there is a risk that investment in the whole industry will be overheated and prices will fall. As the chemical product market has been heating up in the past two years, investment has increased significantly and the characteristics of over-investment have been demonstrated. Taking methanol as an example, in response to waves of methanol booms set up around the country, relevant experts reminded that by 2010 China's total methanol demand was only 12.5 million tons. Faced with this situation, companies that are preparing to invest in methanol must now think clearly.
The potential surplus of methanol is a typical example. Although other chemical products are not so serious, investment overheating is almost reflected in various products, but only to varying degrees. The price of chemical products will decline in the second half of this year, but due to inertia, the decline will not be too great, and the days of the industry will be better. What is really dangerous is next year. If the results of macro-control can't reach the expected target and the regulation will continue, the days of the chemical industry will be more difficult.
From the perspective of the international and domestic environment, the economy is in a booming cycle in the past two years and the economic growth rate is relatively fast, which makes the demand for chemical products more prosperous. After the global economy and the momentum of China’s economic growth have begun to slow down, it can be said that the economic cycle of chemical products has come down.
When the business climate is high, the ratio between the enterprises is the size of the output and the size of the production load. When the business climate declines, the ratio between enterprises is endurance, which is the ability to control costs. We should be prepared for the latter.
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