First quarter petrochemical economic operation stabilized slowed down

China Drying Net China Petroleum and Chemical Industry Federation's latest quarterly report on the economic performance of the entire industry shows that in the first quarter, the economy of the whole industry was generally stable, basically in line with expectations, and the growth rate of industrial added value and main income slowed down. At the same time, the China Chemical News reporter learned from several provinces that most of the petrochemical industries around the world exhibited stable economic performance and slower growth.

According to reports from the Petrochemical Federation, in the first quarter, the main business revenue of the industry was 3.19 trillion yuan, a year-on-year increase of 6.6%, a year-on-year slowdown of 2.9 percentage points; and the industrial added value increased by 8.6% year-on-year, down 0.4 percentage points year-on-year. The rapid growth of investment has continued to play an important role in the stable growth of the entire industry. In the first quarter, the industry’s investment in fixed assets was 312.78 billion yuan, a year-on-year increase of 18.6%, which was faster than the same period of last year and the first two months of this year.

The report pointed out that the current economic operation of the industry is facing prominent problems in three aspects: continuous price declines, further intensification of overcapacity in some industries, and accelerating growth in operating costs. Among them, the total price level of the oil and chemical industry has dropped for 16 consecutive months, and the price in the chemical industry has fallen for 23 consecutive months; currently, the capacity expansion of the industries such as phosphate fertilizer, urea, chlor-alkali, methanol, and oil refining continues to varying degrees. The surplus situation has not been effectively alleviated, and the utilization rate of the equipment has continued to decline; in the first quarter, the chemical industry's revenue cost per hundred yuan reached 87.78 yuan, 2.22 yuan higher than the national-scale industry of the same period, and the industry's main revenue profit margin was only 4.24%.

China Chemical News reporter learned that the development of the petrochemical industry around the various levels subject to the above three issues. The stable operation and slower growth of the petrochemical economy have been confirmed in the first quarter of the petrochemical economy of many provinces across the country.

For example, in the first quarter, all major economic indicators of the crude oil extraction industry in Shandong Province decreased year-on-year, which had a significant deceleration effect on the increase in various indicators of the industry. At the same time, due to the overcapacity, the production and operation of certain industries such as fertilizers were difficult. The total output value and export delivery value of the petrochemical industry in Zhejiang Province only increased by 2.2% and 1.8% respectively year-on-year, and the total industry profit fell by 3% from January to February. The refining sector in Gansu Province has suffered losses. The chemical industry has been affected by rising raw material prices, and chemical product prices have continued to slump. The economic performance of the industry is difficult to pick up. The prices of most petrochemical products in Liaoning Province have fallen, the production and sales ratio has declined, and the irrational industrial structure has still been highlighted. The total industrial output value of petrochemical enterprises above designated size in Xinjiang only increased by 2.2% year-on-year, and the industrial added value increased by 6.5%, of which the rubber products industry even decreased by 7.8%. As one of the eight pillar industries in Shaanxi Province, the value added of energy and chemical industry increased by 9.2% in the first quarter, which was significantly lower than the same period of last year.

According to the analysis, the current market demand is flat, the overall price level continues to fall, and the overcapacity situation in some industries is further aggravated. The increase in the operating cost of enterprises is accelerating and the downward pressure on the economy remains high. The Petrochemical Federation expects that the overall oil and chemical market in the second quarter will still be a weak operation, but it will be slightly better than the first quarter.

Shandong: a good start, some industries difficult

The Shandong Petrochemical Industry Association recently disclosed that in the first quarter, the petrochemical industry in the province overcame the adverse effects brought by factors such as overcapacity, and the economic operation was generally stable and a good start was achieved. At the same time, in some industries such as chemical fertilizers, the unprecedented production, main income, and benefits have been falling for many years. The growth rate of the chemical industry's exports has slowed down sharply, and it needs to attract the attention of the industry and actively resolve them.

In the first quarter, the output of most key petrochemical products in Shandong Province increased year-on-year. Among the 18 kinds of key dispatch products, the output of 10 products increased. Among them, acetic acid, synthetic rubber, methanol, tires, caustic soda, soda ash production of six kinds of products increased significantly year on year, were 32.1%, 19.5%, 18.1%, 17.8%, 12.6% and 11.1%. At the same time, the industry’s main revenue and profits have maintained year-on-year growth. In the first quarter, the province's petrochemical industry achieved a total revenue of 645.5 billion yuan, a year-on-year increase of 10.8%, and a profit of 40.5 billion yuan, an increase of 8.2%. Among them, the chemical industry achieved a total revenue of 589.4 billion yuan, an increase of 11.9%. Basic chemical materials, tires, and specialty chemicals contributed a lot, with main business revenues increasing by 18.5%, 14.4%, and 12.7% year-on-year respectively. In terms of profits, the chemical industry achieved a profit of 31.3 billion yuan, a year-on-year increase of 15.9%. Among them, basic chemical raw materials, oil refining, and tires had a larger increase, with profits up by 44.3%, 39.3%, and 20.7% year-on-year respectively.

Although the industry as a whole maintained a steady growth, due to the drop in international crude oil prices, the major economic indicators of the Shandong crude oil extraction industry fell in the first quarter of the year, including a 7.3% decline in main revenue and an 18% drop in profits. At the same time, due to the influence of overcapacity, production and operation in some industries are difficult, especially in the chemical fertilizer industry. The main revenues and benefits have all declined in different degrees. This is not the case for many years. Affected by the decline in the export growth rate of the tire industry, the growth rate of the chemical industry's exports has slowed down significantly. (Li Wenfeng)

Gansu: The year will be the trend of "low before and after high"

Recently, the reporter learned from the Gansu Provincial Industry and Information Technology Committee that the oil and chemical industries in the province resisted the downward pressure on the economy in the first quarter and basically maintained a stable operation trend. However, due to tight crude oil resources, insufficient crude oil processing, higher raw material prices, and lower product prices. With the increase in production costs and other factors, economic efficiency has declined.

In the first quarter, the cumulative production of crude oil in the Yumen and Changqing oilfields was 1,808,300 tons, an increase of 12.81% over the same period of last year. The province's crude oil processing volume was 3,799,300 tons, an increase of 1.64% year-on-year. Among them, 2,229,400 tons of Lanzhou Petrochemical, an increase of 1.88%; 87,560 tons of Qingyang Petrochemical, an increase of 3.6%; 49,430 tons of Yumen Oilfield, down 2.67%. In the first quarter, Lanzhou Petrochemical produced 164,000 tons of ethylene, a year-on-year decrease of 0.73%; Yinguang produced 24,100 tons of DNT, an increase of 8.64%; TDI was 37,100 tons, an increase of 32.21%; Northwest Yongxin Company produced 3,357 tons of coatings. 8.43%; The province's cumulative production of synthetic ammonia was 170,400 tons, an increase of 37.64%.

The chemical market was weak, raw material prices continued to climb, and prices of chemical products continued to slump, mainly falling. In the first quarter, the average price of synthetic rubber was 11,110 yuan/ton, a year-on-year decrease of 22.94%; urea 1,700 yuan/ton, a decrease of 13.53%; and TDI 16,305 yuan/ton, a decrease of 12.98%. Inadequate start-up of some industries and the forced shutdown of some enterprises still exist, among which high energy-carrying companies such as calcium carbide and silicon carbide are more prominent.

The Gansu Provincial Commission of Industry and Information Technology predicts that from the second quarter onwards, investment and consumption will continue to grow steadily and rapidly with the arrival of the peak period of project construction. A number of major infrastructure projects and the people's livelihood project will start construction in succession, which will drive the chemical industry. Industry and other related industries. The first quarter will be the low point of the province's chemical industry, and the annual economic operation will show a trend of “low before and after high”. (Chou Guoxian)

Zhejiang: Overall sluggish, partial highlights appear

An analysis report of the province’s first quarter industrial economic situation released by the Zhejiang Economic and Information Commission showed that the growth rate of above-scale industries in Zhejiang Province was lower than expected, and the downward pressure was greater. The overall performance of the petrochemical industry as a pillar industry is low, but there are also some bright spots.

In the first quarter, the total output value of the petrochemical industry in Zhejiang Province was 231.26 billion yuan, and the export delivery value was 24.37 billion yuan, up by 2.2% and 1.8% respectively, of which the chemical production value was 131.4 billion yuan, an increase of 6%; the total industry profit from January to February was 5.3 billion yuan. Declined by 3%, of which chemical profit was 4.4 billion yuan, an increase of 1%. The prices of most products in the industry continued to fall, and the total price level in January and February decreased by 1.6%.

In the overall downturn of the industry, driven by factors such as stricter environmental protection, elimination of backwardness, and downstream demand, the concentration of dyes, spandex, and glyphosate in Zhejiang Province has increased, resulting in a significant increase in profitability.

According to the analysis of the relevant person in charge of the Operation Department of Zhejiang Economic and Information Commission, although the main indicators of the industrial economy have declined, but from the trend of relevant indicators and research situation, there have been many positive signs. First, industry-related indicators have improved. In the first quarter, the province's industrial electricity consumption was 52.6 billion kWh, an increase of 3.9%, 6.1 percentage points higher than the same period of last year. Second, the price index is expected to gradually narrow the decline. According to predictions from relevant international agencies, global commodity prices are expected to stop falling and rebound, or to push the Zhejiang PPI (Industrial Producer Price Ex-factory Index) to a narrower decline, or even negative. Third, a group of successful transition companies are gradually becoming the backbone of supporting industrial growth. A group of enterprises increased the intensity of innovation and integration, promoted the transformation of business models, and brought new vigor and vitality to the development of enterprises. (Weng Guojuan)

Liaoning: Difficulties, prospects can be expected

Due to the slowdown of domestic macroeconomic development, the lack of downstream demand, and overcapacity of some petrochemical products, the economic growth of the Liaoning petrochemical industry slowed down in the first quarter, the prices of most products declined, and the production and sales rate fell.

In the first quarter, Liaoning's petrochemical industry achieved a year-on-year increase in industrial added value of 6%, a decrease of 4.1 percentage points from the same period of last year. Among the 23 key petrochemical products, there are 14 types of production declines compared to the same period last year. In particular, affected by the oversupply in the domestic refined oil market and the blockage of refinery oil products, the processing volume of crude oil decreased by 6.2% year-on-year, gasoline by 4.4%, diesel oil by 5.8%, ethylene by 10.2%, plastic resin by 13.1%, and synthetic fibers. The monomer decreased by 42.3%. Seventy percent of key products have seen a drop in prices, among which urea, polyethylene, polypropylene, and polyvinyl chloride paste resins have decreased significantly.

According to the analysis, the main cause of the current development of Liaoning's petrochemical industry is in the industrial structure. The local central enterprises are mostly based on raw materials or fuels. The industry chain is short and the added value of products is low. Local enterprises' product structure is refined, high-end, high level of technology and profitability are high.

Zhang Yaojun, president of the Liaoning Petrochemical Industry Association, believes that the current industry development is difficult, but later with Fushun Petrochemical, Huajin Group's ethylene, Dalian Fujia PX, Yi Sheng and Hengli's PTA, Panjin and transport butyl rubber, etc. The key projects have been put into operation one after another. The structure of the petrochemical industry in the province will undergo great changes. In particular, Shenyang, Dalian, Fushun, Yingkou, Panjin and other petrochemical parks have become the main platforms for the development of the industry. It is expected that a petrochemical industry of the present scale will be remanufactured in the next three to five years. Zhang Yaojun hopes that petrochemical enterprises will actively provide science and research public relations projects to scientific research institutes, and scientific research institutes will introduce their scientific research achievements to enterprises and accelerate the formation of industrial innovation strategic alliances.

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