The Petrochemical industry, a significant part of the chemistry industry, includes not a few production departments ranging from the pesticide industry, the chemical fertilizer industry, the rubber chemical industry and the synthetic material industry, etc. As one of the pillar industries of China, the petrochemical industry plays an important role in the development of China's national economy.
In 2005, a profit of RMB 370.79 billion was achieved in China's petroleum industry and chemical industry when offset the profits and losses, increasing by 32.3% compared to 2004. Among this, the loss of the petroleum processing industry and the petroleum products manufacturing industry were RMB 18.9 billion while the total profit was RMB 20.8 billion in 2004 mainly because of the rising oil price. Also a common loss in China's petrochemical industry still exists in H1 2006.
The total profits of the pesticide manufacturing industry were RMB 3.3 billion in 2005, increasing by 46.8% compared with RMB 2.3 billion in 2004, keeping a rapid advancement in the industry in H1 2006.
China's chemical fertilizer manufacturing realized a total profit of RMB 17.7 billion in 2005, much higher than RMB 10.8 billion in 2004.
In 2005, China's synthetic material manufacturing made a profit of RMB 17.8 billion; however, lower than RMB 20.2 billion in 2004 and developed less fast compared to 2004.
Market Statistics and Demand Forecast in China's Synthetic Rubber, 2005&2010
Generally speaking, the year 2004 was the peak in the development of global petrochemical industry. Yet when it came into 2005, gross profit of global petrochemical industry sharply declined compared to the previous year. The year 2004 seems to have reached the peak of the thriving period. As the new equipments are gradually put into production and the output capacity of petrochemical products is massively released, the petrochemical industry will enter a steady development stage by 2007 and 2008.
Challenges and opportunities coexist in China's petrochemical industry. The whole industry is developing towards maturity and it will maintain its pillar position in China's national economy for fairly a long time thanks to the huge realistic and potential market demand for petrochemical products. In a word, China's petrochemical industry still has a bright future.