By DAI Jingjing

The operating revenue of the petrochemical industry in the first half of 2022 was 8.1 trillion yuan (US$1.2 trillion), up 20.9 percent. Total profit was 752 billion yuan, up 24 percent. Imports and exports stood at US$516 billion, up 28.6 percent.

“The actual results in the first half of the year have greatly exceeded expectations at the beginning of the year,” said FU Xiangsheng, vice-chairman of the China Petroleum and Chemical Industry Federation. “This is mainly because petrochemical prices have remained high.”

Petrochemicals accounted for 12.4 percent of the total national industrial income, 1 percentage point higher than in the same period last year. Profits accounted for 17.6 percent, up 3.1 percentage points. 

The industry faces two challenges: energy consumption control and export policies. So far this year, the domestic refined oil export quota is down 40.2 percent from the first three batches last year. Exports are down 40.7 percent. Utilization of refineries was only 71 percent, falling further behind the world average of 90 percent.

Fu predicted that growth in H2 may be lower than that in H1, but the whole-year performance of the industry is expected to hit a new high.