In response to some unfavorable situations in the current industry development, many high-level members of the China Petroleum and Chemical Industry Federation recently expressed their concerns about the overcapacity and homogeneous competition in the petrochemical industry on various occasions.

Li Shousheng, executive vice president of the China Petrochemical Federation, said at a forum recently that the overcapacity in the petrochemical industry is increasingly serious. Except for the shortage of crude oil and ethylene, almost all processing products have surplus production capacity, and the blind expansion of production capacity remains Continuing, this not only leads to a serious waste of resources, but also continues to deepen the existing contradictions.

Li Shousheng pointed out that while there is a large surplus of traditional products, China’s high-end petrochemical products are in serious shortage, and some high-tech products are still blank. According to statistics, in the petrochemical industry, the trade deficit in the chemical industry alone reached US$ 43.382 billion in 2010, and 90% of these imports are synthetic resins.

“The key to solving the current contradiction is to accelerate the transformation and upgrading of traditional industries, accelerate the innovation and cultivation of strategic emerging industries, and seize the commanding heights of a number of strategic emerging industries to form a new industry growth point under the premise of controlling production capacity and blind expansion. Li Shousheng said.

Li Yongwu, president of the China Petrochemical Federation, proposed at the “2011 China International Coal Chemical Industry Development Summit Forum” held in Urumqi that the development of new coal chemical industry should avoid product homogenization.

Based on the preliminary investigation of the country's proposed and planned coal-to-olefins project scale of 25.9 million tons, coal-to-oil project volume of 33.7 million tons, and coal-to-ethylene glycol project scale of 3.69 million tons, Li Yongwu recommended that Xinjiang pay attention to investment overheating. Problems with excess production capacity and avoid homogenization of products. At the same time, he believes that the development of new types of coal chemical industry must pay close attention to the constraints of process technology and equipment, attaches great importance to water balance, environmental protection, transportation and security and other issues.

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