Daily Overview of the Five Major Energy and Chemical Industry Chains | 2026.5.18

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🛢️ Petrochemicals | Oil prices fluctuating at high levels; shift toward more chemical production 📊 Capacity and prices: National refining capacity at 965 million tons per year (down 1.2% year-on-year), ethylene production at 35.2 million tons per year； Coastal areas account for 62.8%, with continuous phasing out of outdated facilities in the Bohai Sea region. On May 18, Brent was at $108.8 per barrel, while WTI was at $103.5 per barrel ； PX increased by 54.8% year-on-year, while styrene decreased by 1.5% month-on-month. Sichuan’s shale gas reserves increased by 235.7 billion cubic meters, enhancing the supply of raw materials for the gas chemical industry. 🏗️ Project updates: 17 high-end coastal projects with a total investment of 385 billion yuan ； Gulei ethylene plant will come online in August, with the construction of Huizhou Phase 3 at 42% progress. The upgrades at Maoming Petrochemical (30.5 billion) and Yueyang Ethylene (35.7 billion) are accelerating, with a focus on photovoltaic materials such as EVA and POE. 💰 M&A /🔬 Technology /📜 Policies: 12 M&A deals at the beginning of the year, worth 59 billion yuan, led by private enterprises ； Sinopec and AVIC Oil’s merger has been finalized. 68% domestic production of metallocene catalysts ； Energy consumption for green hydrogen refining – 25%; cost of CCUS is 235 yuan per ton. The Ministry of Industry and Information Technology ensures comprehensive energy-saving oversight; 8 million tons of outdated production capacity will be phased out along the riverside within this year. 🔭 Trend: By 2028, the degree of refinement is expected to reach 56%, with coordinated development in high-end industries along the coast, light hydrocarbons in the central and western regions, and gas-based chemical industries in Sichuan and Chongqing. 🔥 Coal Chemicals | Peak maintenance period and accelerated low-carbon transition 📊 Capacity and maintenance: 33 million tons per year for coal-based olefins, and 96.5 million tons per year for methanol; the Northwest accounts for 79%/83% of these capacities. Maintenance work in May and June reduced production by 1.356 million tons ； Ningmei’s 4 million tons/year coal-to-oil plant requires 40 days of maintenance starting from 5.26, while Lu’an’s 1 million tons/year coal-to-oil plant needs 20 days of maintenance starting from 5.20. 🏗️ Project progress: The 1 million tons/year coal-to-oil project in Yitai, Ili, Xinjiang (cost: 21 billion) is 77% complete, with commissioning scheduled for 2028. The construction of the 1 million tons/year olefins project by China National Coal Group Pingshuo (29.8 billion) and the 900,000 tons/year polyolefins project by Sinopec Dalu (21.9 billion) is underway. 💰 M&A /🔬 Technology /🔭 Trends: 3 M&A deals in May, worth 15 billion yuan; CR5 reaches 48%. DMTO-Ⅲ: 750 yuan savings on tonol ； The cost of hydrogen produced from coal is 8.3 yuan/kg. By 2030, coal-based new materials will account for 28%, with \"green hydrogen + CCUS\" becoming a standard configuration. ⛏️ Coal mining | Ensuring supply and stabilizing prices | Smart and clean technologies 📊 Capacity and prices: 4.2 billion tons of raw coal from Shanxi, Shaanxi, Inner Mongolia, Ningxia, and Xinjiang (accounting for 91%) ； 5,500 kcal at 848 yuan per ton, coking coal at 1,550 yuan per ton. In the first quarter, the coal mining and processing industry generated revenue of 637.7 billion yuan (+1.9%), with profits amounting to 85.69 billion yuan (+6.7%). 🏗️ Projects /💰 M&A /🔬 Technology: Annual investment of 135 billion yuan, intelligent mining efficiency of 78%. 4 M&A deals in May / 8.5 billion yuan, with CR10 reaching 68%. Ultra-supercritical coal consumption is 256 g/kWh, with large-scale operation without human intervention. 🔭 Trend: 42% local conversion by 2030, with enhanced dual properties of fuel and raw materials. 💨 Industrial gases | Domestic substitution for specialty gases | Tight supply balance 📊 Capacity /🏗️ Projects /💰 M&A: Market value of 290 billion yuan in 2026 (+8.5%) ； The self-sufficiency rate for bulk products is 98.5%, while that for electronic specialty gases is 63%. Eastern Electronic Special Gases: 14 units / 26 billion; Northwest Air Separation: 9 units / 38 billion. 3 M&A deals in May / 7.5 billion, with foreign investors accounting for 40%. 🔬 Technology /🔭 Trends: Electronic specialty gases reaching 6N level, suitable for 14nm processes ； Efforts to recover rare gases. By 2030, the self-sufficiency rate for electronic specialty gases will be 82%. 🧪 Energy Materials | Storage Boom | Domestic Substitution 📊 Production Capacity /🏗️ Projects /💰 M&A: Market value of 2.9 trillion yuan, with annual growth of 36% in storage materials ； The Northwest accounts for 48%, while the Yangtze River Delta accounts for 68% in terms of lithium battery materials. China Salt Chemical Investment will spend 25.3 billion yuan to build a facility capable of producing 5 million tons per year of natural soda, thereby creating green production capacity. 5 deals in May / 13 billion, with cross-sectoral capital accounting for 40%. 🔬 Technology /🔭 Trends: PNE electrolyte density + 45% ； 55% domestic production of coal-based carbon fibers. By 2030, the domestic substitution rate will be 88%. 🌍 Global Impact | Geopolitical Turmoil and Increased Energy Independence: Disruptions in the Middle East support oil prices; domestic refining products see price increases of 9%-13%, with export shares reaching 19%. Coal chemicals: Benefits from high oil prices drive rises of 6%-10% in methanol/olefins ； “The Belt and Road initiative saw a 28% increase, and the China-Kazakhstan Aktobe urea methanol project is progressing. Coal: Slight decline in global demand; domestic efforts to ensure supply and stabilize prices ； Coking coal has a premium of 220 yuan per ton. Energy materials: Global transformation drives growth, with exports of domestically produced, cost-effective products up by 18%. 🤝 Joint industry development for mutual success: The five major industrial chains exhibit regional specialization, low-carbon requirements, concentration of leading enterprises, and coordinated operation across the entire chain. Amid global changes, China’s advantages in resource autonomy and complete supply chains become more prominent. This platform continuously provides accurate production capacity, cutting-edge technologies, and global prices, breaking down barriers between upstream and downstream entities, and serving as a hub for technical exchanges, project collaborations, and resource sharing. Unite our efforts to explore the path toward higher sophistication, greener practices, and greater intelligence in the energy and chemical industries! Cited from: WeChat Official Account – Huayu Jingyan