Investment in the Petrochemical Industry Nurturing a New Bright Spot

Business community on April 27 hearing at the recently held “2010 China Summit Forum on investment trends in the chemical industry”, the participating experts to carry out the revitalization plan for the petrochemical industry is highly positive, and pointed out that in this process, investment opportunities will be endless.

Vice President of Petroleum and Chemical Industry Planning white Yi said, “12 5” is the petrochemical industry in China an important strategic opportunity, but also from “a Major Petrochemical Petrochemical power a crucial stage.” In this transition period, the petrochemical industry, the restructuring of the industry to further speed up to meet the domestic industry to upgrade to the chemical products industry made higher demand.

Bai Yi engaged in the planning of the petrochemical industry, the project studies and preparatory work for a large research topic. Served as the national chemical industry, “Ninth Five-Year”, “15”, “Eleventh Five-Year Plan” work.”’12 5′ plan just completed, has not yet been approved.” Yi said White. She said the restructuring of the petrochemical industry to take the strategic approach includes two directions: First, new scientific control volume, that is strictly forbidden low energy efficiency projects launched to encourage energy efficiency projects. Second, strong reform “stock”, that eliminated the backward technology and equipment with high energy consumption, and actively promote inefficient equipment (system) for energy saving and use of energy gradient optimization.

“Forced restructuring of the chemical industry, industrial upgrading, China’s chemical industry, the development of a long way to go, new investment highlights the bright spots in the industrial structure adjustment.” Houhong Sen said.Houhong Sen said the chemical must be treated plates were divided into two areas. First of all, for the production of surplus commodities serious, must resolutely abandon blind expansion project in order to reduce the chemical industry caused by abnormal development of the serious contradictions.

Second, targeting the development direction of the chemical industry to promote healthy development of the industry. For the protection of resources, protecting the environment and upgrade the leading consumer attention should be paid for investment opportunities. Need emphasis is that the chemical industry in the new small cap companies listed is different from other industries in the small cap companies, small business risk, we suggest long-term hold.Bai Yi forecast, “12 5” period, the petrochemical industry will continue to show the different characteristics of the development.

Including petrochemical, chemical new materials and intermediates, fine chemical new areas and new growth industries such as energy industry, will continue to expand the scale, increasing the variety, to meet the growing demand; fertilizer, a chemical in the field of traditional carbon, the two bases, rubber chemicals, fine chemicals and other traditional mature industries, continue to optimize the industrial structure, enhance the quality and level of competitive advantage.

Economic and Technical Development Center of China Chemical Xu Jingsheng, deputy chief engineer predicted that by 2012, the world’s Fine and Specialty Chemicals market will reach 1.2 trillion or more, fine chemical products a big market.

Operation Monitoring and Coordination Ministry of Industry and Secretary Xin Guobin that the petrochemical industry in the first quarter profit of 91.6 billion, an increase of 1.8 times. Hou Hongsen long-term bullish rating for the chemical industry. He stressed that adhering to the resources and ideas for the king, potassium, Sulfur, phosphorus, and fluorite ore and other long-term investment value. A share market at present a relatively large number of such companies, investors can focus on. In addition, the introduction of resource taxes, though short-term impact on profits of listed companies, but long-term benefit rational use of resources and the integration of mineral resources.

Investment securities in Rui Dingkun that oil price increases is limited. OPEC cut production drastically, the remaining capacity is too high to even higher oil prices leading to higher pressure. Meanwhile, high oil prices is not conducive to macro-economic recovery.

Investment strategy, Rui Dingkun that if at a high level of inflation, oil prices at a low level, then the investment should be the preferred fossil oil, oil field service times; if inflation remains at a high level, when crude oil prices at a high level, will have to concerned about the coal, coal chemical industry and oil field service preferred.

In order to promote the two countries exchange of petrochemical industry, China Petroleum and Chemical Industry Association, China Chemical Network join the Iranian Chamber of Commerce in May Copolymer Ningbo, invited two senior industry experts organize the “2010 Sino-Iranian Petrochemical Industry Summit Forum” with you discuss the continuous expansion of production capacity between China and Iraq under the petroleum products market!

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