The domestic petrochemical industry in China sustained its high speed growth in the first half. Stimulated by record high oil and feedstock prices in the global markets, prices for domestic petrochemical products also witnessed a remarkable rise coupled with a trade deficit that continued to rise on account of short supply. So though the rate of production maintained a steady and speedy growth in H1, profit growth slackened. The total output value in current price of the industry in H1 reached 3.07 trillion yuan, up 30.2% yoy and sales saw an increase of 30.6% to 3.02 trillion yuan.
Profits of the industry shrunk to 279 bln yuan, up only 2.5% yoy as against double digit growth recorded in the past five years.
Refineries incurred great losses in H1 for sharp increase of costs caused by high oil price. Also, long term investments in the petrochemical industry began to see slower growth. Trade deficit of the industry increased to US$70.3 bln in the first five months, up 57.1% yoy.
23-Jul-08 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}