Thread Content
On the 19th, the executive meeting of the State Council reviewed and approved in principle the plan for the adjustment and revitalization of the petrochemical industry: first, it is necessary to maintain the stable operation of this industry. Implement comprehensive measures such as **expanding domestic demand, revitalizing key industries, and increasing food production to boost consumption of petrochemical products.** Strengthen import and export supervision and improve the price formation mechanism for energy products. Second, it is necessary to improve the capacity to ensure agricultural inputs. Adjust the production structure of fertilizers and pesticides, optimize resource allocation, reduce costs, and increase supply. Improve the system for strategic stockpiling of chemical fertilizers, and strengthen the development of the supply network for agricultural diesel. Third, it is necessary to coordinate the layout of major projects and vigorously promote technological upgrades. Accelerate the implementation of major oil refining and ethylene projects under construction to strengthen the momentum for industrial development. Promote the comprehensive utilization of resources and waste recycling technologies to develop a circular economy. Fourth, it is necessary to control the total volume and phase out outdated production capacity. Stop approving coal chemical projects such as coke and calcium carbide that merely aim to expand production capacity, and resolutely curb the uncontrolled growth of coal chemistry. Fifth, it is necessary to increase policy support. Accelerate the establishment of refined oil reserves, improve tax policies, increase investment in technological upgrades, and provide greater credit support to petrochemical enterprises. Sixth, it is necessary to improve the corporate governance structure, strengthen scientific decision-making, enhance risk prevention and control capabilities, and raise the management level of petrochemical enterprises. Comment: From the perspective of industrial adjustment plans, the goal is to stabilize the petrochemical products market while accelerating industrial structure adjustments, optimizing the layout of industries, focusing on improving innovation capabilities and management levels, and continuously enhancing the competitiveness of these industries. In terms of the structure of fertilizer production, in 2008, nitrogen fertilizers accounted for 74% of China’s total fertilizer production, phosphorus fertilizers accounted for 21%, and potassium fertilizers accounted for 5%. In terms of the structure of fertilizer application, the ratio of nitrogen, phosphorus, and potassium fertilizers used in China is approximately 1:0.33:0.22. There is a severe imbalance between the production structure and the application structure – there is an excess of nitrogen fertilizers while the supply of potassium fertilizers is significantly insufficient. In 2008, China’s production of potassium fertilizers was 2.775 million tons, accounting for only 34% of the apparent consumption volume.