Under the pressure of environmental protection, how is the prospect of the chemical industry?

Environmental supervision, safety accidents, chemical market, industry policies, mergers and acquisitions and other issues are the key issues for industry development in 2017. In 2017, the chemical industry will show an overall upward trend, but the rate of increase will slow down.

The “2017 China (Zibo) International Chemical Products and Technology Equipment Exhibition” jointly sponsored by the China International Chamber of Commerce, Zibo Chamber of Commerce, Zibo City Convention and Exhibition Industry Association and Zibo Machinery Industry Association was successfully held at Zibo International Convention and Exhibition Center.

Environmental supervision, safety accidents, chemical market, industry policies, mergers and acquisitions and other issues are the key issues for industry development in 2017. With the theme of “Efficient, Safe, Environmentally Friendly and Energy-Saving”, this exhibition provides an opportunity to accelerate the promotion of intelligent manufacturing in the chemical industry, improve the comprehensive scientific and technological level of China's chemical equipment manufacturing industry, and build a professional and high-end international platform.

Environmental supervision work brings vibration to the chemical industry

2017 is definitely a crucial year for the chemical industry. The central environmental protection inspector was fully launched on April 24, and seven central environmental protection inspectors conducted environmental protection inspections in seven provinces (cities) including Tianjin, Shanxi, Liaoning, Anhui, Fujian, Hunan, and Guizhou. For chemical companies with backward production processes and technical equipment and failing to meet safety and environmental protection requirements, they face the threat of being rectified and eliminated.

According to the "Regulations on the Administration of Industrial Product Production Licenses of the People's Republic of China", the AQSIQ has cancelled more than 400 chemical products of industrial enterprises due to the renewal of provincial certificates, the expiration of the validity period of production licenses, and the overall closure of enterprises in accordance with the law. Production License.

Safety work is still the top priority of the chemical industry

The General Office of the State Council has successively promulgated the "13th Five-Year Plan for Safe Production" and the "Notice on Printing and Distributing Comprehensive Safety Management Measures for Hazardous Chemicals", requiring all localities to accelerate the safe relocation of production and storage sites for hazardous chemicals and chemical enterprises in densely populated areas. In 2020, all the hazardous chemical production enterprises located in densely populated areas of cities and towns will start relocation and transformation, and accelerate the process of “retreating into the city”. At present, the “relocation” across the country is in full swing.

The chemical market is stable and rising

With the coming of the environmental storm and the integration of the country's supply chain, in 2017, there will be more chemical companies with backward technology and less environmental protection requirements to withdraw from the market, which will benefit the entire chemical market. Secondly, due to changes in the trading environment, some The import cost of chemical products with lower self-sufficiency will increase further and prices will continue to rise. Third, with the bottoming out of the economic environment, the terminal market is gradually stable, and the sharp decline in demand in the chemical market in 2017 is difficult to reproduce.

According to data released by the National Development and Reform Commission website, in the first quarter, the added value of the chemical industry increased by 5.5% year-on-year, and the growth rate dropped by 3.3 percentage points year-on-year. Among the main products, ethylene production was 4.63 million tons, down 5.1%. The output of plastics in the primary form was 21.39 million tons, an increase of 5.1%; the output of synthetic rubber was 1.34 million tons, an increase of 11.8%; the output of synthetic fibers was 10.77 million tons, an increase of 6.4%. The output of caustic soda was 8.73 million tons, an increase of 8.4%; the output of soda ash was 6.66 million tons, an increase of 8%. The output of rubber tires was 225.55 million, an increase of 12.2%. The output of calcium carbide was 6.54 million tons, an increase of 5.5%.

“One Belt, One Road” brings opportunities for overseas investment in the chemical industry

On May 10th, the report “Global Opportunities in China's Chemical Industry” was released. As China's “One Belt, One Road” construction continued to advance, the pace of “going out” of chemical companies was further accelerated, becoming an important force for Chinese enterprises to “go global”.

At present, global chemical companies are actively pursuing the continuous integration of strategic product portfolio streamlining and segmentation products, which will bring a large number of M&A opportunities. The report disclosed that China's foreign investment is mainly through overseas mergers and acquisitions, rather than new factory investment. In 2016, the record of China's chemical companies' M&A transaction level innovation was equivalent to twice that of 2015, accounting for 24% of global chemical companies' M&A transactions. As China's chemical companies pay more attention to overseas growth opportunities and advanced technologies, China's influence on the global chemical industry M&A market will further increase.

Summarizing the chemical industry, it is expected that the overall upward trend will appear in 2017, but the rate of increase will slow down. The country is undergoing rectification, and chemical companies should continue to innovate. Every aspect of modern society is inseparable from chemical products, but chemical products should be "single-edged swords" and should not be "double-edged swords". The improvement of material should not be at the expense of environmental damage. In the process of continuous reform, the chemical industry should follow national policies, adhere to environmental governance, and seek sustainable development.

Angel Halo

Angel Halo