China’s petrochemical industry revenue reaches RMB 5.1 trln
The total revenue of China’s petrochemical industry reached 5.1 trillion in 2007, 22.5% higher than 2006, according to the annual report published by China Petroleum and Chemical Industry Association.
In 2007, the domestic crude oil output reached 187 million tons, up 1.6% over the previous year. The oil imports and exports were 163.1 million and 3.85 million tons respectively. The nation’s dependence on crude oil imports was 47.1%, higher than that of 45% in 2006.
In addition, the industrial output value and the profits of the petrochemical industry reached RMB 5.2 trillion and RMB 530 billion respectively, up 21.8% and 21.0% from a year earlier. The report also warned that it will be an overall price rise for all the consumables if the refined oil price continues surging in the future.
Last year, the fixed investment of petrochemical industry reached RMB 635 billion, up 34% over 2006. This is the fifth year since 2003 during which the investment kept annual growth of over 30%. It brought great pressure to the energy, resource and environment conditions, while there were excess capacities in some industrial sectors.
Meanwhile, the rising oil price will increase the production cost of the downstream chemical products, especially for the three major synthetic materials, namely synthetic resin, synthetic fiber and synthetic rubber. China has cancelled the export tax rebates for several petrochemical products in 2007, thus the price pressure of synthetic material has been eased due to the slowdown in demand.
Tags: import, oil, output, Petroleum