2022 annual production capacity warning report of key petrochemical products released

At the 2022 Petrochemical Industry Development Conference held on June 28, Sun Weishan, vice president of the China Petroleum and Chemical Industry Federation, released the "2022 Key Petrochemical Product Capacity Early Warning Report"
.

The "Report" pointed out that in 2021, the economic performance of China's petrochemical industry exceeded expectations, and major economic indicators increased significantly
.
Among the 28 major petrochemical products monitored by the Petrochemical Federation, the capacity utilization rate of 21 products such as ethylene glycol and caustic soda increased, and the capacity utilization rate of 7 products such as ethylene and paraxylene showed a downward trend.
The main reason for the decline was Most of the newly constructed units will be put into operation in the second half of the year
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The "Report" predicts that China's oil refining capacity will reach 910 million tons per year in 2022, making it the world's largest oil refining country
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However, with the promotion and application of new energy vehicles in China, the refined oil market will further oversupply
.
Basic petrochemical raw materials such as ethylene, propylene, ethylene glycol, and p-xylene are still in the peak production period, and the supply gap of some products has narrowed
.
The capacity utilization rate of some basic chemical raw materials whose capacity growth is strictly controlled, such as caustic soda, soda ash, methanol, calcium carbide, 1,4 butanediol, and titanium dioxide, has been increased
.
In addition, the prosperity of the chemical fertilizer industry has rebounded, the supply and demand of the nitrogen fertilizer market has been balanced, and the overcapacity of phosphate fertilizer has been improved
.
Synthetic resins such as polyolefin and polycarbon are at the peak of capacity expansion, while PVC still has excess capacity
.
The structural overcapacity of synthetic rubber is serious
.
The international competitiveness of polyurethane has been enhanced, and the increase in exports has kept the operating rate of the plant at a high level
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Sun Weishan emphasized that propylene, p-xylene, ethylene glycol, polycarbonate, titanium dioxide, BDO and degradable materials, lithium iron phosphate and other products may be put into production with the completion of new projects, causing overcapacity problems
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Under the downward pressure of the economy, petrochemical construction projects in various places tend to be launched faster, and investment tends to be overheated.
It is necessary to be alert to a new round of overcapacity that may be triggered
.

At the same time, the industry must also attach great importance to the safety and environmental protection issues of industry operation, establish a "red line awareness", and resolutely prevent the recurrence of major accidents
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It is also necessary to adhere to green, sustainable and high-quality development, promote technological innovation and industrial structure upgrading, and promote the construction of a carbon circular economy system
.