A 330% drop! Some chemical enterprises are losing hundreds of millions of yuan

In the context of the global economic recession, the decline in production and sales of chemical products combined with the decline in price, enterprises have difficulties, a number of losses. Not just at home, but also overseas giants such as Dow, Trinseo and Eastman.

Trinseo: first-quarter sales totaled $996 million, down 28% year-over-year, due to continued customer destocking and weak demand; The total loss in the first quarter was $49m, down from a profit of $17m in the same period last year, as sales volumes and margins fell.

Eastman: The company reported financial results for the first quarter of 2023, with lower volume/mix of plasticizers and olefins due to continued weak demand in end-markets, including building and construction, consumer durables, and industrial products. The company said chemical intermediates sales revenue declined 18%, mainly due to a 12% decline in volume/mix and a 5% decline in selling prices.

Dow: Dow reported a net loss of $73 million for the first quarter. Dow said group-wide sales were down 11 per cent from a year earlier, with Europe, the Middle East, Africa and India down 15 per cent but up 2 per cent from a year earlier. Dow said net sales at the largest U.S. chemical company fell 22% to $11.851 billion, reflecting declines in all of its operating segments due to slowing macroeconomic activity.

Domestic chemical companies lost hundreds of millions of yuan

Bohai Chemical: It is expected that the net profit attributable to the first half of 2022 will be about -170 million yuan to -180 million yuan, which will show a loss compared with the same period last year.

Shanghai Petrochemical: The net profit attributable to the shareholders of the parent company is expected to be -498 million yuan to -358 million yuan in the first half of the year, which is expected to show a loss compared with the same period of 2021;

Kangda New Materials: The net profit loss for the half year of 2022 is expected to be 9.71 million yuan to 16.65 million yuan, compared with a profit of 27.75 million yuan in the same period last year.

Jilin Chemical Fiber: It is expected that the net profit loss attributable to the shareholders of listed companies in the first half of 2022 will be 80 million to 95 million yuan, down 296.23% to 333.02% year-on-year.

Sanjiang Chemical: Its net loss attributable to equity holders for the six months ended June 30, 2022 is expected to be between RMB70 million and RMB90 million, a decrease of more than 120% year-on-year.

Shenyang Chemical: It is expected that the net profit loss attributable to the shareholders of listed companies in the first half of 2022 will be 150 million to 18 million yuan, and the profit in the same period last year will be 37,6.33 million yuan, which will turn from profit to loss.

Price war more than four enterprises to escape bad luck

Since the first quarter, the overall chemical market is difficult to see the improvement, enterprise orders decline, the ensuing price war is becoming more and more fierce.

According to industry statistics, the east China region manufacturers reaction orders decline mostly concentrated in about 10%; In the south China market, orders of downstream processing enterprises fell more than in the east China region. Can not support the enterprise, chose bankruptcy liquidation. According to combing, this year the chemical industry bankruptcy is not uncommon. According to enterprise inspection statistics, there are 1889 chemical enterprises that will be bankrupt and restructured and cancelled in 2023.