In 2015, the added value of the chemical industry increased by 9.3%, with main business revenue reaching 8.8 trillion

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According to the 2015 industry economic performance report recently released by the National Development and Reform Commission and the China Petroleum and Chemical Industry Federation, in the face of a complex and volatile domestic and international economic environment, the petroleum and chemical industry overcame numerous difficulties and managed to maintain stable economic operations. Recently, the **National Development and Reform Commission released data on the economic performance of China’s chemical industry in 2015: the added value of this industry increased by 9.3% compared to the previous year, with the growth rate declining by 1.1 percentage points. Among the main products, ethylene production amounted to 17.15 million tons, an increase of 1.6%. The output of primary-form plastics was 76.91 million tons, an increase of 10.5% ； Synthetic rubber production was 5.17 million tons, a decrease of 3.3% ； The output of synthetic fibers was 44.87 million tons, an increase of 13.4%. Caustic soda production was 30.28 million tons, a decrease of 1.4% ； Soda ash production was 25.92 million tons, an increase of 3.1%. Fertilizer production reached 76.27 million tons, an increase of 7.3% ； Among them, the production of nitrogen fertilizers, phosphorus fertilizers, and potassium fertilizers increased by 6.3%, 11.4%, and 8.3% respectively. Pesticide production reached 3.74 million tons, an increase of 2.2%. The production of rubber tire outer tires was 925.16 million units, a decrease of 4%. Chlor-alkali production was 24.83 million tons, an increase of 1.4%. According to the report on the industry’s economic performance for 2015 issued by the China Petroleum and Chemical Industry Federation, in 2015 there were 29,765 enterprises in the petroleum and chemical industry that met certain size criteria, and the added value of the entire industry increased by 8.5% on a year-on-year basis ； Main business revenue was 13.14 trillion yuan, a decrease of 6.1% ； The total profit amounted to 648.49 billion yuan, a decrease of 18.2%; it accounted for 11.9% and 10.2% of the main revenue and total profit of industrial enterprises on a national scale, respectively ； Tax payments amounted to 1.03 trillion yuan, a 5.0% increase, accounting for 20.7% of the total tax revenue from industrial enterprises across the country ； Fixed asset investment amounted to 2.23 trillion yuan, a decrease of 4.1%, accounting for 10.2% of the total industrial investment in the country ； Total assets amounted to 12.07 trillion yuan, an increase of 3.6%, accounting for 12.1% of the total assets of industrial enterprises across the country ； The total value of imports and exports was 526.28 billion US dollars, a decrease of 22.1%, accounting for 13.3% of the country’s total import and export volume. Of this amount, exports amounted to 182.05 billion US dollars, with a decrease of 7.5%, representing 8.0% of the country’s total export volume. The business climate index released by the China Petroleum and Chemical Industry Federation shows that in December, the index for China’s chemical industry was 85.34, down 0.11 points from the previous month ； The oil and gas industry prosperity index was 72.17, down 2.00 points from the previous month. In 2015, there were 26,505 enterprises in the chemical industry that met the specified size criteria, and the sector’s value added increased by 9.3% ； Main business revenue reached 8.84 trillion yuan, a year-on-year increase of 1.9% ； Total profit amounted to 460.34 billion yuan, an increase of 6.3% ； Taxes paid amounted to 288.03 billion yuan, an increase of 5.1% ； Fixed asset investment reached 1.57 trillion yuan, an increase of 1.1% ； Total assets amounted to 7.65 trillion yuan, an increase of 5.5% ； The total value of export trade was 152.01 billion US dollars, a decrease of 6.2% on a year-on-year basis, accounting for 83.8% of the total exports of the entire industry. In 2015, the total output of major chemical products across the country was 550 million tons, representing a year-on-year increase of 4.9%. Among them, the total output of chemical fertilizers (in pure terms) was 76.273 million tons, representing a growth of 7.3% ； Caustic soda production was 30.281 million tons, a decrease of 1.4% ； Ethylene production was 17.145 million tons, an increase of 1.6% ； The total output of synthetic materials was 123 million tons, an increase of 8.2%. Annual tire production was 925 million units, a decrease of 4.0%. In 2015, the 11 provinces and municipalities in the eastern region achieved a total profit of 448.64 billion yuan, a 5.1% decline year-on-year, accounting for 69.2% of the total industry profit across the country. The total profit of the 8 central provinces was 89.93 billion yuan, a decrease of 41.4%, accounting for 13.9%. The total profit of the 12 western provinces, municipalities, and autonomous regions was 109.91 billion yuan, a decrease of 34.1%, accounting for 16.9% of the total. In 2015, the gap in performance between the eastern region and the central and western regions showed a tendency to widen. In 2015, the eastern region’s main revenue amounted to 8.69 trillion yuan, a 5.2% decline year-on-year, accounting for 66.2% of the total industry revenue in the country. The central region generated main business revenue of 2.34 trillion yuan, a decrease of 6.8%, accounting for 17.8% of the total. The main revenue from the western region was 2.11 trillion yuan, a decrease of 8.9%, accounting for 16.0% of the total. In 2015, the total regional investment across the country was 2.19 trillion yuan, a decrease of 1.4% compared to the previous year. Among them, the eastern region invested 1.09 trillion yuan, a decrease of 2.6% on a year-on-year basis, accounting for 49.7% of the total investment in industries across the country ； The central region saw investment of 562.69 billion yuan, a growth of 4.7%, accounting for 25.7% ； Investment in the western region amounted to 537.99 billion yuan, a decrease of 4.7%, accounting for 24.6% of the total. Since the beginning of this year, investment in the central region has continued to grow, while it has declined significantly in the western region. The economic operation of the industry exhibits four main characteristics. First is the optimization of the structure of production growth. The added value of the industry increased by 8.5% on a year-on-year basis, an increase of 0.2 percentage points compared with the previous year. Among them, the chemical industry grew by 9.3%, the refining industry by 8.5%, and the oil and gas extraction industry by 1.3%. Especially in the chemical industry, sectors with high added value such as synthetic materials, specialty chemicals, and fine chemicals are driving growth. Second, the transformation and upgrading of enterprises as well as the adjustment of product structures are accelerating. Accelerating the transformation and upgrading of enterprises to achieve innovative development has become a consensus within the industry and among enterprises. In particular, enterprises in the central and western regions have been highly effective in innovating their offerings, achieving a high starting point, and pursuing leapfrog development. Third, energy efficiency continues to improve. In the first three quarters, the total energy consumption of the petroleum and chemical industry increased by 1.6%, a decline of nearly 5 percentage points on a year-on-year basis. However, the total oil and gas production increased by 2.7% during the same period, crude oil processing volume rose by 4.5%, and the total output of major chemicals increased by 4.9%. The standard coal consumption per 10,000 yuan of revenue in the chemical industry decreased by 1.1% on a year-on-year basis. Fourth, the overall efficiency has recovered and stabilized. The year-over-year decline in industry-wide profits for the whole year was 18.2%, which represents a reduction of more than 40 percentage points compared to the beginning of the year. Among them, profits in the oil and gas extraction industry dropped by 73.6%, while profits in the refining industry increased by 8.9 times (due to a low base last year); profits in the chemical industry rose by 6.3%. The profit margin on main operating income in the petroleum and chemical industry was 4.93%, up 2.46 percentage points from the beginning of the year. “During the 12th Five-Year Plan period, the average annual growth rate of the added value in the petroleum and chemical industry was 9.0%, the average annual growth rate of main business revenue was 9.3%, the average annual growth rate of total assets was 12.5%, the average annual growth rate of actual investment was 14.0%, and the average annual growth rate of total exports was 6.2%. The scale of the petroleum and chemical industries remains among the largest in the world. In 2016, the oil and chemical markets showed overall stability with an upward trend. First, macro demand remains on the rise. Second, the global economy is recovering moderately. Third, the overall price level will recover and stabilize. Fourth, as the market stabilizes and prices rise, companies’ confidence in investing increases, which could lead to steady growth in investment within the industry. Fifth, the adjustment of the industrial structure continues to accelerate. Based on an analysis of macroeconomic trends, industry production and price dynamics, as well as structural changes, it is estimated that in 2016 the value added of the oil and chemical industry will increase by approximately 8.7% on a year-on-year basis ； The main business revenue reached around 14 trillion yuan, an increase of about 6%; among this, the revenue from the chemical industry was approximately 9.4 trillion yuan, with a growth rate of 6.5% ； The total profit amounted to approximately 684 billion yuan, representing a growth of 5.5%; among this, the chemical industry’s profit was 490 billion yuan, with a growth rate of around 7%. The total actual investment for the whole year is expected to be around 2.37 trillion yuan, representing a year-on-year increase of about 6% ； The total value of imports and exports was 548 billion US dollars, representing a year-on-year increase of 4.0%. Of this, the total value of exports was around 190.7 billion US dollars, with an increase of about 5.0%.