With the Middle East a number of large petrochemical plant in full production this year, very low local costs will be large-scale petrochemical products into China. Vice Secretary-General Feng Shiliang Sinopec, told reporters that not only a threat to small and medium sized domestic petrochemical enterprises, and even a threat to several major domestic oil giant's operations.
 Feng Shiliang online in China Chemical Industry Week's "third market and the development of Shandong in refining summit" clearance above an interview and make a stand.
"In PE (polyethylene), PP (polypropylene), for example, the Middle East, production of such products will account for the next 5 years 20% of the world and 13% shipped to China, even with shipping costs and customs duties, costs, or one third lower than similar products, both the level of competition is not a class. "Feng Shiliang said.
 He disclosed that the petrochemical association has been actively studying this response, possibly through cooperation with other ways to "resource for market." At the same time, he suggested that domestic petrochemical enterprises should be and the Middle East "differential production", to avoid some of the other petrochemical products on the dominant face confrontation, but to take buy the other product for further processing of raw materials and ways to avoid risks.
 The Chinese general manager of Sinopec Qilu Petrochemical Company Zhen Yong Chang also deeply worried. He said that the Europe and the United States, South Korea and Japan and other traditional market has developed relatively mature, the incremental demand for petrochemical products is small, high grade of products, while China's large surplus Middle Eastern countries will be the main target market for petrochemical products.
 It is reported that the Middle East now is the world's largest concentration of ethylene in the area of industrial investment. Data, 2008 to 2013, the Middle East ethylene capacity of an average increase of nearly 400 million tons by 2013 will add 16 million tons of ethylene capacity / year, accounting for 47% of the world's new capacity of ethylene, when the world is about 90 % of ethylene derivatives and propylene derivatives, 70% of net exports from the Middle East, including GCC exports to the Middle East accounted for more than 80%.
 "In fact, the Middle East petrochemical products in China cheap sell the signs started to emerge from last year." Chang Chun-yong said, "2009 China polyethylene, polypropylene and ethylene glycol, the import has increased by 49%, 102% and 47%, prices are generally lower than current market price. "
 According to the relevant department projects that by 2015, the Middle East, polyethylene, ethylene glycol, polypropylene, PTA and other petrochemical products to China's total exports may reach 16.82 million tons, up 3.5 times higher than in 2008.
 "The Middle East Petrochemical products cost less than a third of China's cash." Sinopec Group chief expert Shu Zhaoxia Economic Research Institute pointed out that the Middle East, the development of ethylene mainly cheap and abundant local natural gas and light hydrocarbons as raw materials, coupled with multinational joint venture, generally a larger plant size, skill levels are high, with significant competitive advantage.
 A measure of domestic research shows that in 2015 the domestic ethylene plant capacity utilization to drop to 54%, 46% of domestic ethylene capacity will be idle, and may lead to its refining capacity to provide raw materials supporting about 150 million tons / year can not normal production.
 Analysts believe that as China's largest ethylene producer, Sinopec is expected to be affected by the impact of chemical plate, but the main industry, the refining segment into the black last year, its overall performance is not a beating. Another major ethylene producer PetroChina's profits come from crude oil, a small proportion of the chemical business is expected to hit is also less. And 2 to PP-based industry companies - real Mao of China, Yueyang Xingchang is expected to be in the Middle East petrochemical products into the Chinese a major impact after the encounter.
 Feng Shiliang online in China Chemical Industry Week's "third market and the development of Shandong in refining summit" clearance above an interview and make a stand.
"In PE (polyethylene), PP (polypropylene), for example, the Middle East, production of such products will account for the next 5 years 20% of the world and 13% shipped to China, even with shipping costs and customs duties, costs, or one third lower than similar products, both the level of competition is not a class. "Feng Shiliang said.
 He disclosed that the petrochemical association has been actively studying this response, possibly through cooperation with other ways to "resource for market." At the same time, he suggested that domestic petrochemical enterprises should be and the Middle East "differential production", to avoid some of the other petrochemical products on the dominant face confrontation, but to take buy the other product for further processing of raw materials and ways to avoid risks.
 The Chinese general manager of Sinopec Qilu Petrochemical Company Zhen Yong Chang also deeply worried. He said that the Europe and the United States, South Korea and Japan and other traditional market has developed relatively mature, the incremental demand for petrochemical products is small, high grade of products, while China's large surplus Middle Eastern countries will be the main target market for petrochemical products.
 It is reported that the Middle East now is the world's largest concentration of ethylene in the area of industrial investment. Data, 2008 to 2013, the Middle East ethylene capacity of an average increase of nearly 400 million tons by 2013 will add 16 million tons of ethylene capacity / year, accounting for 47% of the world's new capacity of ethylene, when the world is about 90 % of ethylene derivatives and propylene derivatives, 70% of net exports from the Middle East, including GCC exports to the Middle East accounted for more than 80%.
 "In fact, the Middle East petrochemical products in China cheap sell the signs started to emerge from last year." Chang Chun-yong said, "2009 China polyethylene, polypropylene and ethylene glycol, the import has increased by 49%, 102% and 47%, prices are generally lower than current market price. "
 According to the relevant department projects that by 2015, the Middle East, polyethylene, ethylene glycol, polypropylene, PTA and other petrochemical products to China's total exports may reach 16.82 million tons, up 3.5 times higher than in 2008.
 "The Middle East Petrochemical products cost less than a third of China's cash." Sinopec Group chief expert Shu Zhaoxia Economic Research Institute pointed out that the Middle East, the development of ethylene mainly cheap and abundant local natural gas and light hydrocarbons as raw materials, coupled with multinational joint venture, generally a larger plant size, skill levels are high, with significant competitive advantage.
 A measure of domestic research shows that in 2015 the domestic ethylene plant capacity utilization to drop to 54%, 46% of domestic ethylene capacity will be idle, and may lead to its refining capacity to provide raw materials supporting about 150 million tons / year can not normal production.
 Analysts believe that as China's largest ethylene producer, Sinopec is expected to be affected by the impact of chemical plate, but the main industry, the refining segment into the black last year, its overall performance is not a beating. Another major ethylene producer PetroChina's profits come from crude oil, a small proportion of the chemical business is expected to hit is also less. And 2 to PP-based industry companies - real Mao of China, Yueyang Xingchang is expected to be in the Middle East petrochemical products into the Chinese a major impact after the encounter.
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