Market demand is not encouraging Many chemical companies are forced to cut production
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Chang Chizhi, a research fellow of China Investment Advisor Chemical Industry, pointed out that due to the unclear outlook of the European debt crisis and the weak global economic trends, the market is not optimistic about the development prospects of the global economy, and now the demand for chemical products such as olefin polymers is decreasing, which makes related chemical products Manufacturers have to reduce the operating rate of the relevant devices.
Among them, in the European chemicals market, due to the slowdown in global economic growth and worries about the debt crisis in the euro zone, people's willingness to purchase goods is not strong, and the demand for chemical products has dropped steeply. In recent years, Ineos stated that due to the reduction in demand, the company decided to substantially reduce its resin production in Europe by the end of 2011, and its operating rate of low-density polyethylene and linear low-density polyethylene resin plants will be reduced to around 50%.
Due to the adverse effects of global economic slowdown and flooding in Thailand, Japanese chemical companies such as Mitsui Chemicals, Mitsubishi Chemical, and Asahi Kasei are also facing large-scale production cuts. Among them, Mitsui Chemicals began to reduce production of phenol for high-intelligent resins from November, and its production cut reached 40%; Mitsubishi Chemical, Asahi Kasei and other ethylene producers also reduced their operating rates to around 85%.
In the Korean chemical market, some chemical production facilities also began to shut down. For example, South Korea's LG Chemical Co., Ltd. recently stated that due to weak demand for products, the company plans to lower the operating rate of polyethylene and polypropylene devices located in Dashan and Lishui in late November or early December; South Korea Jumeilai also said that due to profit To the extrusion, the current operating capacity of its polypropylene plant in Yeosu will also be maintained at around 90%.
In the chemicals market in Greater China, due to the limited growth in downstream demand, major petrochemical companies have reduced their production capacity, and the operating rate of their petrochemical crackers has not been high. For example, due to the lack of downstream demand, Shanghai Saicco's naphtha cracker has already reduced its load production; Sinopec also reduced the operating rate of ethylene cracker due to the weak demand for olefin polymer; Taiwan Formosa Petrochemical also has its three. The operating rate of the naphtha cracker was reduced to 80%.