Shanxi's chemical industry loses a foregone conclusion this year

Although the output of the product has increased substantially, due to the serious shrinkage of profits, Shanxi chemical companies will suffer a total loss this year. This is a serious situation in the statistical data just published by the Shanxi Chemical Industry Office.
This statistical data shows that in the first 10 months, the output of most chemical companies in Shanxi has increased to some extent. Among them, coke and coke production increased by 21.3% and 21.1% year-on-year respectively, while production of caustic soda ash increased by 9.8% and 16.6% respectively, while refined methanol increased by 94.7%, while pure benzene production doubled. At the same time, however, the profits of key chemical companies have shrunk dramatically. From January to October, Fengxi Fertilizer achieved a profit of 95.33 million yuan, a year-on-year decrease of 33%; Taihua Group realized a profit of 1.7 million yuan, a year-on-year decrease of 64%; Double Happiness Tire realized a profit of 1.88 million yuan, a year-on-year drop of 39%; Tianji Group The realized profit was 37.61 million yuan, a significant drop of 67% year-on-year. Coke companies were even worse. In the first nine months, loss-making enterprises suffered a loss of 1.23 billion yuan, a loss of 26.9% from the same period last year. It is estimated that Shanxi coke enterprises accounted for 32% of the province’s losses. Zhang Liping, director of the Chemical Industry Office of Shanxi Province, judged that with the increase in the pressure of chemical economic growth in the fourth quarter, the growth rate has dropped, the market price has risen and there is no hope, and the unfavorable situation of Shanxi's chemical companies is difficult to change. The full-scale loss of chemical companies in the year has been pinned. .
As for the cause of this loss-making earning and drinking situation, Chen Jiandong, chairman of Shanxi Shuangxi Tire Group, believes that the dual pressure of rising raw material prices and falling product prices has caused a considerable part of the company's production and operation to be in a disadvantageous environment of “high-low entry”, resulting in Increased costs and reduced profit margins. For example, among the raw materials for tire manufacturers, natural rubber has risen by 50%, synthetic rubber by 23%, carbon black by 50%, and zinc oxide by 130%. Shanxi Dongxi Seawater, chairman of Fengxi Group, also confirmed that this year's sales price of urea decreased by RMB 60.76 per ton; soda ash prices dropped by RMB 159 per ton year-on-year, and ammonia prices dropped by 17.6% year-on-year.
However, the rise in raw material prices and the decline in product prices are common problems faced by chemical companies across the country. Why does Shanxi alone stand to highlight the decline in efficiency? According to Zhang Liping, director of the Chemical Industry Office of Shanxi Province, it is heavily dependent on resources, the lack of new internal forces for economic growth, and the low scientific and technological content of products and low added value are the basic reasons for Shanxi's chemical industry's overall losses this year.

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