China's petrochemical industry is facing five major policy changes this year

According to reports, in 2007 China's oil and chemical industry will face five aspects of policy changes, which will make the industry develop a certain number of variables. First, the crude oil and refined oil wholesale markets are open to the outside world. In the long run, the opening up of oil products is expected to accelerate the process of marketization in China's oil circulation, cultivate diversified market players, and gradually create a market competition pattern in which oil sources and business entities are diversified and brands and services are differentiated. The second is the reform of the refined oil pricing mechanism. On March 26, 2006, while the National Development and Reform Commission announced the increase in refined oil prices, it also communicated to the local government the comprehensive oil reform plan. However, there has been no clear-cut answer as to how the domestic refined oil pricing mechanism actually changed. The National Development and Reform Commission is expected to continue this reform in 2007. If the reform is implemented, the overall loss of the refining industry is expected to change completely.

Third, natural gas prices will continue to rise. Compared with the international market, the domestic natural gas price is seriously low, resulting in irrational Chinese natural gas consumption structure. At present, China's natural gas consumption grows at an average annual growth rate of 25%, but civil gas accounts for less than 27% of the natural gas consumption structure. At present, relevant departments have reached a consensus on the increase in domestic natural gas prices. In the future, it is expected that gas prices will gradually increase by 5% to 8% each year until they are roughly in line with international price levels. The fourth is the reform of the fertilizer policy. In 2007, China will further promote the reform of the fertilizer industry, liberalize the fertilizer distribution market, liberalize fertilizer prices, gradually phase out preferential policies for fertilizer production and circulation, and finally achieve full marketization of the fertilizer industry. The distribution market for fertilizers is liberalized, the reshuffling within the industry is inevitable, and competition will be even fiercer. Fifth, the pace of industrial restructuring will accelerate. At the end of November last year, China officially issued the “Eleventh Five-Year Plan for the Development of Science and Technology for Chemical Industry”. The implementation of this plan will help China speed up the elimination of outdated technologies and technologies with high consumption and high energy consumption, and promote the upgrading of industrial technology and industrial restructuring. It is believed that those enterprises that have high technical barriers, pay attention to the continuous improvement of technological processes, and promote energy conservation and consumption reduction and circular economy will continue to grow in the structural adjustment of China's chemical industry.

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