The landscape of chemical industry companies is diverse and dynamic, influenced by factors such as market demand, technological innovation, environmental policies, and global economic conditions.
1.Global Leaders: BASF has remained the largest chemical manufacturer globally for several years, with chemical sales of about 92 billion USD in 2023. Sinopec and Dow have consistently held the second and third positions, respectively.
2.Rise of Chinese Enterprises: The number of Chinese companies among the top 50 global chemical enterprises has been increasing, with 11 Chinese chemical companies making the list in 2024, indicating the strong growth momentum of China's chemical industry.
3.Industry Diversification: The chemical industry spans various sectors, including basic chemicals, plastics, synthetic rubber, and specialty chemicals. Different sub-sectors within the industry exhibit varying degrees of market prosperity, with some facing challenges of overcapacity and others growing due to technological innovation and market demand.
4.Importance of Technological Innovation: Long-term development in the chemical industry is increasingly reliant on technological advancements, which encompass not only the development of new products but also improvements in existing products and processes to enhance efficiency and reduce costs.
5.Impact of Market Demand: The demand for chemical products is affected by downstream industries such as real estate, automotive, textiles and apparel, and agriculture. For instance, the downturn in the real estate industry in 2023 impacted the demand for certain chemical products, while growth in automotive production provided support for the demand of some chemical products.
6.Operating Performance: In 2023, among the large-scale enterprises in China's chemical industry, the chemical fiber manufacturing industry achieved growth in both operating income and total profit, while the chemical raw material and chemical products manufacturing industry saw a decline in operating income but an increase in total profit year-on-year.
7.Industry Consolidation and Investment: With the advancement of "dual carbon" policies and the demand for high-quality development in the industry, investment growth in some sub-sectors has slowed down. Meanwhile, the demand for high-quality new chemical materials continues to rise, with fixed asset investment in the chemical raw material and chemical products manufacturing industry remaining stable.
In summary, the market landscape of chemical industry companies is being shaped by a multitude of factors, including the global economy, technological innovation, environmental policies, and market demand, with Chinese chemical industry companies making particularly notable strides on the global stage.
