A summary of the economic operation of the petroleum and chemical industries in the first quarter

China Coatings Network
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the first quarter, in the face of complex and severe economic situation, the petroleum and chemical industries actively respond to the economic operation to achieve low-opening stability. Overall, there are bright spots and pain. The positive factors in the economic operation are increasing, and the industry has turned around, which has strengthened the confidence of the later recovery. In the first two months of the industry's economic operation of the rare low opening situation, the economic operation of the positive factors in March continued to strengthen. The growth rate of industry value added picked up. In the first quarter, the value added of the petroleum and chemical industries increased by 7.8% YoY, down 0.8 percentage points from the same period last year, but accelerated by 0.9 percentage points over the previous February and 1.4 percentage points higher than the increase in the value added of large-scale industries nationwide. In March, the industry's value-added rebound was strong, and the rebound momentum was evident. Production continues to grow normally. In the first quarter, china's crude oil production increased by 1.4% year-on-year, natural gas production increased by 4.5%, and production of major chemicals increased by about 6.4%. Among them, some bulk products still maintain a relatively fast growth rate. For example, fertilizer production increased by 5.8%, methanol production increased by 13.5% and synthetic resin production increased by 11.4%. Prices bottomed out and rebounded. In the first quarter, the overall level of prices in the oil and chemical industries fell significantly, but bottomed out in February and rebounded in March. Of the 127 basic chemical raw materials monitored in March, 76 increased month-on-month, an increase of 20 over the previous month, accounting for more than half of the total for the first time. The trend of deteriorating benefits has been mitigated. The latest monitoring shows that the industry's backbone of enterprise efficiency as a whole has improved. The decline in revenue narrowed, the downward trend slowed, and total profits reversed from a net loss in the previous two months to a profit. According to the current trend of economic operation of the industry, the above positive factors are expected to be further consolidated and strengthened in the future, with the gradual implementation of macro-policy measures to stabilize growth, the industry economy in the second quarter is expected to form a stable recovery of the positive situation. Revenue in the oil and chemical industries is expected to grow by about 2% year-on-year in the second quarter, significantly better than the negative growth in the first quarter. However, it should also be noted that the current industry economy is still under a lot of down-pressure. Economic growth remains low. Although the value added of the industry in the first quarter accelerated significantly from the previous February, it was still the slowest increase since the international financial crisis. Moreover, a sharp drop in industry-wide revenue and profits in the first quarter is a forethought, and the first half of the year will be difficult to reverse. The price drop is still large. Although the decline in the overall level of industry prices in the first quarter has slowed, it is still very large, second only to the early stages of the financial crisis. It is worth noting that the downward trend of upstream oil and gas exploration prices has not been effectively curbed, which has a significant impact on the whole industry. Investment growth remains slugged. In the first quarter, fixed asset investment across the sector grew by only 4.7%, a record low. The lack of investment partly reflects investors' concerns about the growth outlook, but also reflects the pain of restructuring the industry. - Large fluctuations in exports. Total industry-wide exports fell 2.3% year-on-year in the first quarter, compared with 4.2% in february and 6.8% in the same period last year, according to customs data. Increased export volatility indicates that the external demand market is unstable and that global economic growth remains under-motivated. The whole industry must correctly understand the situation, take active measures to do a good job in the second quarter of the industry economy, to ensure the full-year "steady growth" goal. First, actively expand market demand to prevent economic inertia from slipping. The biggest problem in the current economic operation of the industry is the shortage of demand and oversupply. We must find ways to open up markets and drive demand. On the one hand, we should increase the development of traditional market demands such as basic chemical raw materials, agrochemicals, rubber products and refined oil products, so as to maximize the potential of tapping mature markets. The second quarter into the busy season of spring farmers, we should focus on pesticide fertilizer, agricultural steam and diesel fuel to ensure the supply of work. On the other hand, we should grasp the trend of changing demand, strengthen the effective supply of machinery, textiles, light industry, real estate market and major capital projects, especially to increase the differentiation and functional products, green low-carbon products and other marketing efforts. Second, optimize the supply structure and actively cultivate new growth points. To improve product quality and grade, vigorously develop new products, leading to the creation of new market demand. We should seize the opportunities of a number of innovative and upgraded projects in agricultural modernization, new urbanization, new industrialization and information development promoted by national macroeconomic policies, and strive to open up new needs for the development of new energy, new materials, energy conservation and environmental protection, high-end equipment manufacturing, new energy vehicles and other strategic emerging industries, and cultivate high-end and differentiated markets such as engineering plastics, fluorosilicon materials, functional membrane materials, polyurethane materials, thermoplastic elastomers, special rubbers, new
coatings
, electronic chemicals, etc. Third, efforts to expand the international market, and actively explore export demand. China's petrochemical exports to bulk raw materials products, mainly rely on low-cost competition as a means, from time to time by foreign anti-dumping, countervailing. Therefore, we should strengthen the tracking of the development of the international market, do a good job in industrial safety early warning work, while accelerating the upgrading of export products. Fourth, strict cost, capital management, and strive to improve the economic benefits of the industry. Enterprises should further establish the concept of system cost management, pay close attention to reduce efficiency, enhance the profitability of enterprises. We should strengthen the management of funds, actively promote the centralized procurement of bulk raw materials and reasonable inventory, actively promote sales coordination, and improve the efficiency of the use of funds.