Chemical Players Alarm for Increased Overcapacity  

The topic of structural contradiction has been frequently exposed to the chemical industry. At a seasonal forum held by China Petroleum and Chemical Industry Association (CPCIA), domestic attendees agreed that the structural contradiction in China's chemical industry remained serious, featured with capacity surplus in traditional production sectors while shortage of new technologies, new products and innovative abilities. New planned and launched projects in different provinces focused on the similar sectors.
    According to CPCIA's data, the operation rate of polyvinyl chloride, methanol and phosphate fertilizers production units in June are averaged at 51.1%, 44% and 56% respectively. Some provincial governments have not been warned by such conditions and are issuing provincial stimulus programs scheduling for plenty of construction on methanol, urea, polyvinyl chloride and soda ash. "If these provincial programs are implemented actually," said Pan Derun, vice director of CPCIA at the forum. "The structural contradiction of overcapacity will become more serious."
    Pan found that the shortage of raw materials and the increased prices determined the development mode at price of consuming energy came into the end. CPCIA will issue guideline proposal in order to help solve the contradiction.