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Shu Zhaoxia said that during the “11th Five-Year Plan†period, the new coal chemical demonstration project was basically successful, and Shenhua Group’s coal-to-oil, coal-to-olefins projects have all been operating smoothly and with good returns. At present, new coal chemical projects that have been put into operation or under construction in China have formed 1.68 million tons/year of coal-based oil, 1.58 million tons/year of coal-to-olefins, 15.1 billion cubic meters/year of coal-made natural gas and 200,000 tons of coal per year. The scale of ethylene glycol. If a large number of planned coal chemical projects are completed and put into production, more than 20 million tons/year of production capacity will be formed, which will bring a huge impact on the existing petrochemical market structure.
China's central and western regions are still in the mid-industrial period. The national regional planning strategy has significantly greater support for the central and western regions than the coastal areas. The resource advantages possessed by the region will gradually emerge through industrialization. In the future, the growth rate of the western region will be higher than that of the coastal regions. The pace of shifting market demand to the central and western regions will also accelerate, and the shift of demand for chemical products to the west will also be inevitable. In this way, the pressure on a large amount of petrochemical production capacity already formed in the eastern developed regions may escalate.
At present, an important reason for the loss of some domestic polyolefin products is the influx of products such as low-priced polyethylene in the Middle East. Right now, the competition in the polyethylene and glycol fields under the impact of Middle Eastern products has become fierce. Recently, many of the projects announced by some countries in the Middle East with foreign companies involved propylene products. In the future, the Middle East will increase propylene production through olefin conversion, propane dehydrogenation, and other methods. The resulting product will be mainly used for the production of polypropylene. Due to the limited market in the Middle East, a large number of indigestible propylene series products must find a way out through exports. From the import and export data of ethylene series products, it can be seen that the major swords for export in the Middle East refer to China. It is expected that following the polyethylene and ethylene glycol, polypropylene will become the new market competition point.
The traditional pattern of the petrochemical market faces three major impacts
The new coal chemical project has been continuously put into production, domestic petrochemical demand has been rapidly transferred to the central and western regions, and more types of low-priced petrochemical products have flowed into the Middle East, which has changed the traditional pattern of the domestic petrochemical market. Shu Zhaoxia, chief expert of the Institute of Economics and Technology of China Petrochemical Corporation, said at the 7th China International Forum on the Development of the Plastics Industry held last week.