Let’s discuss the reasons for the downturn in the chemical industry
Thread Content
With the sharp drop in international crude oil prices, China has also carried out reforms in its chemical industry and begun to address environmental pollution issues. These two factors combined have had a very negative impact on the chemical industry
In the short term, it makes things worse; in the long term, survival of the fittest prevails.
It is said that a coking plant owned by Shenhua has not paid its workers’ salaries for 4 months now
1. Severe overcapacity； 2、Severe environmental pressure ； 3. Outdated technology ； 4. Low added value of products ； 5. High pollution, high energy consumption, and high emissions.
It is mainly due to environmental pressures and overcapacity.
Demand from end-users is declining, there is chaotic competition due to similar products, and few are competitive
Then those of us in the chemical industry will be unemployed, right?
4 months? Is it that serious? :L
1. Added value: If the added value is high, people are still willing to take risks. 2. Market demand: When there is demand, surely someone will be willing to undertake such projects. 3. Overcapacity: In that case, it’s not possible to operate successfully. 4. Outdated technology. 5. Environmental pressures: These are the challenges at the current stage. It will be fine once technology and environmental pressures can be reversed~~
Environmental regulations are becoming increasingly strict, which puts a lot of pressure on many companies. Yet this is a good thing; we can no longer follow the approach of polluting first and then dealing with the consequences. Once certain things are damaged, it’s very difficult to restore balance. So, pressure within the industry will remain for a short time; as mentioned above, it’s survival of the fittest
The weakness of the domestic real economy~~ Where has all the money gone? ~