China Chemical Industry Report, 2007-2008 Available Now

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c81506) has announced the
addition of "China Chemical Industry Report, 2007-2008" to their
offering.

Status Quo of the Industry:

As macro-economy keeps growing and demands downstream continue
increasing since 2007, the price of chemical products takes a
sustained ascending trend and the industrial profit has risen
steadily. From Jan to Aug 2007, China chemical industry achieved the
sales revenue of RMB 1,653 billion, up 31.61% year on year. Its growth
rate doubled that the same period of 2006.

Policy and Plan:

1. Advantages:

Some related policies were made and enforced to promote orderly
and healthily development of chemical industry. Through optimizing
industry structure constantly, resource value is reflected by market,
so as to prevent the waste of resources and achieve the steady
development of the intensive economy. After comprehensive
consideration of chemical companies' affordability and cost transfer
ability, China launched these policies, but these policies will not
affect the profitability of the chemical industry too much on cost.
Since definite policies are executed, estimated market pressure on
chemical industry would be released gradually.

2. Disadvantages:

Since 2007, the increase of policy cost has accordingly brought
loss to the profitability of listed chemical enterprises; in the mean
time, the country reduced the energy consumption sharply.
Consequently, overproduction will take place on chemical market in the
following two years and we are a little anxious about the future trend
of the chemical industry. Another concern is that, the future policy
of the chemical industry is still uncertain, adding doubts to our
anxiety.

Analysis of the Industrial Chains:

As prices of petroleum and natural gas hike, the global demands
for coal increase rapidly. It is inevitable that prices generally go
up, which means that more costs will be spent to make chemical
products. In recent years, China's national economy sustains rapid
development. Along with the development of downstream industries such
as the rubber and the plastic industry, increase of the demand for
chemical products sharply, hence the cost pressure of the chemical
industry was scattered and transferred.

Competition Environment:

Now that industries with high energy waste and serious pollution
are improving, the competitive structure of the chemical industry will
change as well. The reform of the market would increase the entry
barriers to chemical industry, so small chemical enterprises lacking
advantages on resources were hard to sustain their businesses while
the large chemical enterprises will get strengthened in
competitiveness, and company assets and profitability will change
accordingly.

Since 2007, thanks to the rapid development of macro economy and
increasing demands of the chemical downstream industries, the
comprehensive price of the chemical products has increased
continuously and the industrial profit also has had a steady increase.
From Jan to Aug 2007, the national chemical industry achieved sales
revenue of RMB 1653 billion totally, up 69.81% year on year. But
affected by the price of the petroleum and the natural gas in the
third quarter, the growth rate was about 2% lower than the same period
of 2006.

Through high-speed development in recent years, China chemical
industry already has a certain scale. But in comparison with that of
the developed countries, the technology was relatively low and the
industrial structure was not quite reasonable and even some
sub-industries with advantages perform not so well, as their
development still depend on energy wasting industries, causing serious
pollution. Under such situation, the only way to enhance China
chemical industrial competitiveness is to change the increment form
through independent innovation and adjustment on industrial structure.

The effect of the country's macroeconomic control will become more
and more obvious in 2008. The growth rate of capacity and the total
volume of chemical industry as well as the overall profitability are
all predicted to decline. In addition, the growth rate of revenue and
net profit of the industry are expected to be higher than that of GDP,
and the YOY growth rates will both fall.

For more information, visit
here

Laura Wood
Senior Manager
Research and Markets
press@researchandmarkets.com
Fax: +353 1 4100 980

Copyright Business Wire 2008