Under the "dual control" of energy consumption, how does the petrochemical industry play a good "first move"

The normalization of the “dual control” policy of energy consumption, coupled with the shortage of raw material supply, has caused severe shocks in the domestic chemical market recently

The market is volatile

As we all know, after a new round of environmental protection inspections in August triggered regional production shutdowns for rectification, the long-standing energy consumption "dual control" policy has had a short-term escalation effect in the near future, superimposed on coal shortages and electricity consumption.

Shi Xiaofang, ICIS information manager, believes that the petrochemical market volatility presents the characteristics of wide coverage, rapid rise and fall, many influencing factors, and large differences in the degree of influence of various sectors

Judging from the 32 petrochemical products tracked by the ICIS China Information Team, from September 1 to October 12, the prices of 27 products showed an upward trend

Liu Jing, Director of ICIS Asia Petrochemical Analysis, said at the meeting that the ICIS chemical composite index and the price changes of sub-products reflect the recent shocks in the petrochemical market, but for specific products, the reasons behind the price changes are different

The peak of capacity expansion is coming

"The global petrochemical market is at the peak of capacity expansion and will welcome a new cycle

From the perspective of the most representative product, ethylene, according to statistics, from 2020 to 2023, China's single-year expansion of ethylene capacity will exceed 8 million tons

Looking at polyethylene again, recently, Zhejiang Petrochemical and Shandong Shouguang Luqing Petrochemical have put into production a total of 750,000 tons/year of new polyethylene production capacity

ICIS believes that with the increase in supply, competition in the market for these products will become increasingly fierce and there is a risk of price corrections

Find a way to crack

Liu Jing said that from a macro perspective, the energy crisis and carbon neutrality targets have a profound impact on the global chemical market

In this regard, Liu Jing made the following three suggestions: First, from the perspective of the continuity of the energy consumption "dual control" policy and the long- and short-term focus, the risk of supply interruption will exist for a long time, and the factors of capacity under construction and planned capacity must be fully considered.