The economic operation of the petrochemical industry in the first half of the year showed six major characteristics

Recently, reporters learned at the 2025 National Petroleum and Chemical Industry Economic Situation Analysis Conference held in Nantong, Jiangsu that the economic operation of the petrochemical industry was basically stable in the first half of this year, showing six major characteristics.

First, crude oil production, imports, processing volume, and consumption all saw year-on-year growth. This represents a turnaround from decline to growth, based on a simultaneous decline in crude oil imports, processing volume, and apparent consumption last year.

Second, both the output and consumption of major chemicals saw growth, indicating that market demand for petrochemical products and chemical materials is stable.

Third, sector differentiation intensified. The chemical sector performed better than the oil and gas exploration and refining sectors, experiencing "two increases and one decrease": year-on-year growth in revenue and import and export volume, but a year-on-year decrease in profit. The oil and gas exploration and refining sector experienced "three decreases" in revenue, profit, and import and export volume.

Fourth, imports and exports continued their trend of increasing volume and decreasing prices. Data showed that total import and export volume, import value, and the trade deficit all declined year-on-year, with only a slight increase of 0.4% in export value. This was primarily due to the continued low prices of petrochemical products in the global market.

Fifth, both refined oil production and consumption declined. This year, for the first time, the total volume of refined oil, as well as the production and consumption of gasoline, kerosene, and diesel, declined simultaneously. This indicates that, due to the impact of new energy vehicles on the gasoline market and the replacement of diesel by liquefied natural gas heavy-duty trucks, while diesel consumption peaked at the end of the 13th Five-Year Plan, gasoline consumption peaked earlier, in the middle of the 14th Five-Year Plan. Furthermore, while crude oil processing volume increased by 1.6% year-on-year in the first half of the year, refined oil production decreased by 5.4% year-on-year, resulting in a refined oil output rate of 55.3%, down from 59.7% in the first half of last year. This demonstrates that the petrochemical industry's accelerated structural adjustment and transformation and upgrading, focusing on reducing oil production and increasing chemical production in recent years, are showing results.

Sixth, the prices of crude oil and major petrochemical products continued to decline, mainly due to the continued escalation of the Russia-Ukraine conflict, the intensification of the Israeli-Palestinian conflict, the sudden conflict between Iran and Israel, as well as weak economic growth and increasing uncertainties.

"In the first half of the year, the petrochemical industry made significant contributions to safeguarding national energy security, ensuring a good agricultural harvest, and maintaining stable supply and prices in the domestic market," said Fu Xiangsheng, Deputy Secretary of the Party Committee and Vice President of the China Petroleum and Chemical Industry Federation. In the second half of the year, the industry must prioritize improving quality and efficiency, focusing on reducing costs, increasing efficiency, tapping potential, and optimizing efficiency. At the same time, it is necessary to accelerate the petrochemical industry's transformation toward high-end and green development; vigorously address "involutionary" competition and promote the orderly withdrawal of outdated production capacity; firmly achieve the goal of becoming a petrochemical powerhouse as we move toward the 15th Five-Year Plan; and adhere to the bottom line of safety to ensure inherent safety.