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Fu Xiangsheng believes that the current chemical industry is at a low point of cyclical adjustment. From January to July, the fixed asset investment in the petrochemical industry was 515 billion yuan, a year-on-year increase of 13.5%. On the whole, the foundation for the stable recovery of the industry is not very stable. The situation of insufficient demand is still very serious. The prices of most products are low and the export situation is very serious. Judging from the overcapacity in the chemical industry, the problems are also more prominent. From 2004 to 2007, at the time of the peak period of the industrial economic cycle, the chemical industry developed rapidly. The annual growth in sales income was also very large, and the profit growth was also great. The market space was felt by everyone in the market space to be huge, so the industry Investment has developed rapidly. The production capacity of many domestic products is excessive, especially after the outbreak of the financial crisis, this issue should be said to be more prominent.
Fu Xiangsheng said that in 2009, the history of urea production capacity is a serious surplus. From the perspective of capacity, about 63 million tons, the output is expected to be 53 million tons, the actual demand is 45 million tons. There are also coke, dimethanol and other products, excess production capacity is more prominent.
China's chemical industry faces three challenges
At the "2009 Global Entrepreneur Summit" on October 24, Fu Xiangsheng, deputy general manager of China National Chemical Industry Group, said that the chemical industry is facing threefold challenges. In the face of such a challenging situation, there are also opportunities for foreign mergers and acquisitions by our company. One is the impact of the global financial crisis. The second is the cyclical adjustment and influence of the industry. The third is the impact of excess capacity. These three major impacts provide us with an opportunity for restructuring in order to accelerate the globalization of our business during the financial crisis.