Three stages of the overall development of chemical industry in China: Disorderly Development, Tend to be the leading companies, and Scaling up

The overall development of China's chemical industry from 2011 to the present is divided into the following 3 stages:

Disorderly Development, Tend to be the leading companies, and Scaling up

1. Disorderly expansion

During 2011-2015, the number of chemical companies continued to increase due to the rapid growth of bank credit scale as well as the relatively low entry barrier of the chemical industry.

2. Tend to be the leading companies

From 2016 to the present, the number of chemical companies has been decreasing due to the gradual elimination of backward production capacity in the chemical industry under relevant policies in China, while environmental protection and safety policies, investment scale have raised the barriers to industry entry.

Based on the high standard of environmental protection and safety capability, perfect integrated industrial chain and continuous promotion of industrial upgrading, the profitability of leading companies has significantly improved, and the leading chemical companies have become the mainstream of the industry in China since 2016.

3. Further expansion of the scale of leading companies

According to corporate news, major chemical companies in China have large-scale expansion plans in the next three years. We expect these companies to accelerate their growth and promote industrial transformation and upgrading, with some high-quality leading companies expected to become global chemical majors.