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Bright prospects ahead for petrochemical firms
By Wan Zhihong (China Daily)
Updated: 2010-01-29 08:07
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The country's petrochemical industry may see a 13 to 15 percent year-on-year growth in turnover this year, thanks to the economic recovery, an industry association said yesterday.
Full-year profit for the sector will rise 8 to 10 percent, according to China Petroleum & Chemical Industry Association (CPCIA).
"The solid rebound in the petrochemical industry is mainly due to the economic recovery," said Feng Shiliang, deputy secretary of CPCIA. With forecasts indicating a robust industrial recovery, the petrochemical industry is all set to achieve the target, he said.
The crude oil price, which has a decisive impact on the industry, is expected to be around $80 per barrel this year, according to the National Development and Reform Commission. The reasonable crude prices would also have a positive impact on the sector.
An executive with China's largest refiner Sinopec said yesterday that the company would record its best business performance when oil prices are around $80 per barrel.
The petrochemical industry has experienced V-shaped growth since July 2008. Turnover in the sector touched a record high of 683.74 billion yuan last month, said Feng.
However, there still exist some problems constraining the development of the industry, including overcapacity, oversupply, and the impact from imported products, he said.
"Restructuring of the industry and technology upgrades would be the main focus for the sector in the long term," said Feng.
Total investment in the petrochemical industry is expected to grow by 15 percent this year, he said.
China's petrochemical industry including oil and gas extraction, oil refining, chemicals production and equipment manufacturing, posted a turnover of 6.63 trillion yuan in 2009, up 0.3 percent from a year earlier, according to statistics from CPCIA.
