China:Demand in China's High-end Chemical Industry Depends Highly on Imports

Chemical News: China:Demand in China's High-end Chemical Industry Depends Highly on Imports

https://www.chemnet.com Jul 21,2010
China's petroleum and chemical industry, which occupied more than 12% of industrial output value, kept strong growth momentum.

According to Zhao Jungui, vice president of China Petroleum and Chemical Industry Association, gross indusrital output value in the past five months of this year increased by 43.6% while output value of new products climbed up by 57%.

However, despite the larger scale, competitiveness of China's petroleum and chemical industry still maintained at relatively low level. Besides, quite a lot of basic raw materials in domestic market were over capacity, which not only interfered with normal prices but also tended to cause trade frictions. Meanwhile, consumption of 20% homemade materials in basic chemical industry depended on exporting activities while 40-50% domestic demand in high-end chemical industry need to be satisfied with imports, Zhao said.

As a result, importing values in the first five months of this year were 2.6 times as much as exporting values, with trade deficit exceeding $80 billion.

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