On July 15, the Economic Operation Department of the Zhejiang Provincial Economic and Trade Commission learned that the petrochemical industry, which supports Zhejiang, the major economic province, is facing three major pressures: lack of resources, abundance of downstream products, and environmental deterioration, and its growth rate may slow down.
Zhejiang is a large domestic economy and a major petrochemical province. In the first half of this year, under the background of the province's first negative growth since 1998, the province’s petrochemical industry still achieved a total profit and tax of 9.3 billion yuan, a year-on-year increase of 12%. However, the industry has seen far-sighted concerns. Zhejiang is a small province of resources. Phosphate rock, coal chemical and other basic raw materials rely heavily on purchases from other provinces. Once the supply of raw materials is tight, Zhejiang enterprises can easily become passive. This weakness has become more prominent in recent years. Zhejiang is the province with the most severe shortage of electricity. After entering the summer this year, the “electricity shortage†occurred again in Zhejiang. Large areas of electricity restriction, pressure loads, and even some enterprises in the region had to “stop for three to four†and “stop for four to threeâ€, resulting in the production of chemical companies requiring continuous production. Great loss.
In addition, most of the Zhejiang petrochemical industry is located downstream of the industrial chain, and the upstream disturbance will cause great fluctuations in the downstream. In particular, while the rise in oil prices has led to a significant increase in costs, its products have been difficult to increase simultaneously due to fierce market competition. At the same time, textile anti-dumping in Europe and the United States has indirectly affected the dye and pigment industries. Analysis of the industry, contrary to the above restrictions, the growth rate of Zhejiang Petrochemical Industry may slow down in the second half.
Due to the increasingly prominent environmental issues, Zhejiang Petrochemical companies bear the brunt of the tremendous pressure. The pesticide industry in Zhejiang ranks second in the country and it is the strength of the province's chemical industry. However, due to environmental reasons, the pesticide giants such as Hangzhou Qingfeng Agrochemical Co., Ltd. Nanyang Branch Plant and Dongyang Dongnong Chemical Co., Ltd. ceased production; Ningbo Sinochem Chemical Co., Ltd. was relocated from the edge of the Minjiang River to a new plant in Crabpu, due to local The common people oppose it. It has not yet been put into operation; some other pesticide companies have also faced the pressure to relocate their factories. In particular, pesticide companies in Wenzhou are not subject to development due to land, and they are planning to relocate the factory to other provinces. Industry insiders estimate that Zhejiang Chemical Industry will lose several billion yuan in environmental protection issues.
It is understood that since the reform and opening up, Zhejiang Province has been among the best in several rounds of economic development. However, some traditional weaknesses will force the province to take the lead in the cyclical economy.
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