According to the statistics of the China Petroleum and Chemical Industry Association, most of the output of China's petrochemical industry will continue to grow in the second half of this year, but the growth rate has declined somewhat from the previous months. The price increase tends to be flat. Except that the price of synthetic resin still rises significantly, the prices of most kinds of products rise and fall, and the prices of chemical fertilizers and rubber auxiliaries generally decline.
According to Feng Shiliang, deputy secretary-general of the China Petroleum and Chemical Industry Association, due to the successive production of new production capacity, the growth rate of urea, tires, two alkalis, calcium carbide, coatings, and synthetic materials is still relatively fast. According to statistics, 65 types of major petroleum and chemical products that were tracked in August have produced 54 kinds of products, which accounted for 83.1% of the total, and 11 types of products, which accounted for 16.9% of the total, and 33 of them have increased by more than 10%. It accounts for 50.8%.
First of all, oil and gas production is stable. From the statistics of August, the slight increase in crude oil processing and the decrease in the output of major petroleum products were mainly due to the decline in refinery production of CNPC which resulted in a decline in refined oil production.
Second, the fertilizer market is light. The prices of nitrogen fertilizers, phosphate fertilizers, and compound fertilizers have all declined. Enterprises have to adjust production, and total fertilizer production continues to decrease. The production of urea increased rapidly, with an increase of 11.9%, which was mainly due to new production or new load increase of new expansion facilities of some companies. The production of pesticides grew at a rapid rate. The output in August was 94,000 tons, which was a year-on-year increase of 33%.
Third, the production of concentrated nitric acid and hydrochloric acid increased steadily and rapidly. Due to the sluggish market, the output and growth rate of sulfuric acid decreased. As the downstream demand has steadily increased, the market conditions have increased and the production of two alkalis has continued to grow rapidly. In August, the output of caustic soda production was 1.254 million tons, an increase of 18.1% year-on-year. Although the calcium carbide industry has been subject to macroeconomic controls, its rapid growth has not been contained.
Fourth, the growth rate of ethylene and pure benzene slowed down. In August, the output was 725,000 tons and 274,000 tons, respectively, an increase of 6.4% and 6.1% respectively. Refined methanol and acetic acid also maintained stable and rapid growth.
Fifth, the production of the three major synthetic materials continued to grow rapidly. In August, the national output of synthetic resins was 2.119 million tons, a record high in a single month, a year-on-year increase of 12.2%. Of which 695,000 tons of PVC, set a record monthly output of the highest, an increase of 19.4%; polyethylene, polypropylene production was 498,000 tons and 477,000 tons, an increase of 4.4% and 8.5% respectively. The output of synthetic rubber was 159,000 tons, a year-on-year increase of 15.1%, of which 35,000 tons of butadiene rubber, a year-on-year increase of 18.4%. Synthetic fiber production was 1.568 million tons, an increase of 9.9% year-on-year. The production of tires and rubber shoes continues to grow rapidly.
The price increase slows down According to statistics, the price hike of petrochemical products has slowed down in the second half of the year. Looking at the 155 chemical products that were tracked in August, there are 68 kinds of prices rising, accounting for 43.9%, and 63 kinds falling, accounting for 40.6%, which is slightly higher than the fall. Compared with the same period of last year, the rise and fall accounted for 47.7% and 37.4%, respectively, and the rising trend was relatively obvious, mainly reflected in organic chemical raw materials and synthetic resins.
The market for inorganic chemical products is not very optimistic. The impact of electricity price increases has been gradually absorbed by the market. Inadequate effective downstream demand has caused prices to stagnate. Of the 29 products that were tracked in key areas, the proportion of increase and decrease was basically the same whether it was a month-on-month or a year-on-year increase. The sour acid products fell a bit, and inorganic alkali prices rose slightly. In August, the market price of liquid chlorine drastically dropped by 10.3% month-on-month, mainly due to the contradiction between large supply and low downstream demand.
Affected by the deterioration of the liquid chlorine market, some manufacturers began to increase the operating rate of hydrochloric acid, with a view to relieving the sales pressure of liquid chlorine. However, the downstream consumption of hydrochloric acid was still at a relatively low level, causing the shipment of hydrochloric acid to be hindered, and the price was slightly lower. The market price of hydrochloric acid in August was closed It decreased by 2.1%, which was a decrease of 28.7% from the same period of last year.
Due to the low price of liquid chlorine, chlor-alkali enterprises have a negative attitude towards sales of liquid chlorine, and have pushed up the price of caustic soda to make up for the loss of liquid chlorine. In addition, due to the drought in the southwest, many companies have raised the price of caustic soda significantly. The cost of calcium carbide was boosted by the increase in cost and the increase in PVC production by the calcium carbide process. The price rose sharply and reached 2,530 yuan/ton in August, the highest level this year.
Organic chemical products have mixed prices due to wide fluctuations in oil prices. Of the 73 organic products that were tracked, the rising prices still accounted for the majority, and prices of important products such as propylene, butadiene, and xylene all increased. PTA prices rose significantly, mainly driven by rising prices of raw materials PX and downstream polyester. Ethylene glycol rose first and then suppressed, and the whole was relatively stable. Butanol due to the decline in the operating rate of domestic equipment, prices rose sharply, the chain rose 11.6%.
In August, due to the sluggish domestic fertilizer market, prices of fertilizers generally declined, and nitrogen fertilizers, phosphate fertilizers, and compound fertilizers all declined to different degrees. Synthetic resin prices continued to rise, and the five general-purpose resins rose overall. Natural rubber prices continued to fall slightly, with prices falling by 4.3% month-on-month. The synthetic rubber market witnessed fluctuations. SBR increased by 26.3% year-on-year and rose by 3.6% from the previous period; nitrile rubber decreased by 18.7% year-on-year, a slight increase of 0.5% from the previous month.

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