EN

On Echemi
2021 Chemical Industry Research Report
    

Stage One

2011-2015 : Rapidly & Disorderly Development

The number of chemical production enterprises increased significantly during 2011-2015, and the rapid growth of fixed asset investment in the industry led to rapid expansion of chemical production capacity. According to the National Bureau of Statistics of China, the growth rate of fixed investment in chemical raw materials and chemicals in China from 2012-2015 was 31%, 17%, 11% and 3%, respectively. At the end of 2015, the number of chemical raw materials and chemicals manufacturing enterprises in China was nearly 25,000, an increase of 16.5% (+2,342) from the beginning of 2011.
ENTER
{specialTemplate.blobInfo_h.original_blob_name}
Due to the disorderly expansion of chemical industry capacity, the chemical price index showed a downward trend during 2011-2015, and the profit margin of chemical industry gradually declined to a low level.

Stage Two

China's chemical raw materials and products rubber and plastic products industry .jpg
2016-2011: Development tends to the leading companies
Constrained by various factors such as environmental protection policies and funding, the growth rate of fixed asset investment in the chemical industry has been at a low growth rate or even negative growth since 2016.
Companies capital expenditure growth rate
  • By Market Capitalization

  • ≥30 billion yuan

  • 10-30 billion yuan

  • 5-10 billion yuan

  • <5 billion yuan

MORE
We have compiled data on the capacity share of the top five companies in the Chinese market for 18 chemicals in 2016 and 2020, and the industry concentration of most chemicals such as DMF, silicones, adipic acid, spandex and viscose staple fiber will increase significantly in 2020.
  • Accelerated growth of leading chemical companies in China

  • Profitability of leading companies further enhanced

  • The production cost of the leading enterprises is relatively stable based on their high environmental protection and safety capability, engineering capability, the advantages of a well-integrated industrial chain, and better cost control capability.
    MORE
    Number share and capital expenditure share of chemical companies by market capitalization.jpg
  • The widening cost gap between the leading enterprises and small capacity chemical enterprises leads to a gradual steepening of the chemical production cost curve and further enhancement of the profitability of the leaders.
    MORE
    Relatively fast revenue growth of leading Chinese chemical companies after 2016.jpg

Stage 3: Becoming Global Majors

China's chemical industry ranks first in the world in terms of revenue and capital expenditure, and its market share continues to expand. According to the European Chemical Association, Chinese chemical companies spent €87.1 billion in capital expenditure in 2018, with global chemical sales of €3.35 trillion in 2018, of which China's chemical sales accounted for €1.2 trillion, or chemical sales of 35.8%, making it the world's largest chemical market, and BASF expects China's share of the global chemical market to expand to nearly 50% by 2030.

Major Chinese chemical companies have plans for large-scale capital expenditures in the next 3 years, and we expect leading companies to accelerate growth and promote industrial transformation & upgrading.

Strong Core Competitive Advantages

Strong Core Competitive Advantages.jpg
Chinese chemical companies have a high historical return on investment..jpg

Chinese chemical companies have a high historical return on investment.

Based on product advantages, industry chain integration and engineering capabilities under the cost advantage, scale advantage, etc., polyurethane, coal chemical, titanium dioxide, pesticides, dyestuff, food and feed additives and other chemical industry segments of China's leading companies with stronger earnings. 2016-2019 ROE and ROIC and other indicators ahead of the average level of listed chemical companies, some companies' earnings indicators far exceed the average level of listed companies .

Understanding the Chinese Chemical Market through Market Price Trends & Analysis Reports
Know China's chemical market from Market Price & Insight on Echemi. The world's leading China chemical market data and analysis platform.

Based on the years of chemical experience and rich suppliers' resources, Echemi provides Market Price & Insight Service to global customers. This service include market prices, operation status of Chinese suppliers, price changes, etc. Moreover, semi-annual report, annual report and customized reports can be provided. This service can help global buyers know the Chinese chemical market well and seize the best opportunity to make purchasing.

>>Experience it now! 200+ Chemicals for You
On March 31 2021, China approved the restructuring of Sinochem and ChemChina.jpg

On March 31, 2021, China approved the restructuring of Sinochem and ChemChina

“Although China has become the world’s biggest manufacturer and consumer of chemicals, it has not developed a multinational chemical giant like BASF or Dow. Sinochem would like to play that role.”
The total combined assets are valued at $245 billion. The merged company's leading business will be chemicals.

In chemical industries such as MDI, TDI and PTA, large enterprises dominate due to high technological threshold, or few enterprises in the industry and large market share of leading enterprises, which directly affects their production and price to the market situation. These include some Chinese leading enterprises.

Global New MDI Capacity Concentrated to Wanhua.jpg

Global New MDI Capacity Concentrated to Wanhua

Wanhua Chemical completed the technical reform and capacity expansion in Yantai Park at low cost, and the leading position of MDI is further stabilized, and the focus of new production capacity in the next three years is still Wanhua. 2021 Wanhua announced the completion of the technical reform and capacity expansion of MDI plant in Yantai Chemical Park on February 25, 2021, from the original 600,000 tons/year to 1.1 million tons/year, and the low-cost expansion further enhances the cost advantage and stabilizes the leftmost end of the cost curve. After the technical reform, Wanhua's global production capacity will total 2.6 million tons, with a market share of 27.3%. In the next three years, except for Covestro Caojing, which will have a new capacity of 50,000 tons/year in 2021 to break the bottleneck, there is no other expansion plan for overseas enterprises before 2024; while Wanhua Ningbo Park's 300,000 tons/year technical reform capacity and Fujian Park's 400,000 tons/year new capacity are expected to reach production around 2023/2024 and will be put into operation depending on market demand.In 2021, China's TDI design capacity will be 1.39 million tons, and in 2020, China's TDI output will be 1.0813 million tons, an increase of 553,000 tons or 104.79% compared with 2011, with an average annual growth rate of 22.75%.

Titanium Dioxide

Global and Chinese titanium dioxide production capacity from 2010 to 2019.jpg
Tronox, Chemours, Lomon Billions, Venator, KRO account for 58% of total capacity
The total production capacity of titanium dioxide in the world is about 8.685 million tons/year. The global titanium dioxide enterprises are mainly concentrated in the hands of five enterprises, namely Tronox (16.82%), Chemours (14.5%), Lomon Billions (11.02%), Venator (9.28%) and KRO (6.38%), with a total share of 58% of the global production capacity.

Since 2010, the main new global titanium dioxide production capacity is concentrated in China, and the new global titanium dioxide production capacity is concentrated to the leading Chinese enterprises.

Lomon Billions is the only enterprise in China that has mastered the large boiling chloride titanium dioxide production technology, and currently has a capacity of 1.01 million tons of titanium dioxide / year, we expect the company's Jiaozuo Phase II Line 3 100,000 tons / year titanium dioxide chloride production capacity is expected to be put into operation at the end of 2021, Yunnan base 200,000 tons / year titanium dioxide production capacity is expected to be put into operation at the end of 2022, the company plans to 14 Five-Year Plan period CNNC mainly focuses on sulfuric acid production capacity, and currently has 330,000 tons/year of crude titanium dioxide production capacity and 400,000 tons/year of finished titanium dioxide production capacity, and the company plans to continue to expand its crude and finished titanium dioxide production capacity.

China is the world's largest chemical market, but in 2019, only 6 Chinese companies are among the top 50 chemical companies in global chemical sales. This is a shortcoming but also an opportunity for the development of China's chemical industry. We believe that with China's huge chemical market volume, there will be a group of excellent Chinese chemical companies rising to become the leading global chemical companies in the future.

Suggestions
Email:
Message:
Send Message