Production Increased with Higher Prices

By Feng Shiliang of CPCIA   

In the first quarter of 2007, China's petroleum and chemical
industry remained up trend in production. Among the 66 types of
petrochemical products that have been tracked by CPCIA (China
Petroleum and Chemical Industry Association), the output of 58
types increased compared with the same period of 2006,
accounting for 87.9% of the total, and the output of 19 types,
in particular, grew by over 20%, accounting for 28.8%. In March
2007, over 64.2% of 151 types of chemicals being tracked had a
higher price than March 2006.

Production

In the first quarter of 2007, China's total output of crude oil
reached 46.041 million tons, a rise of 1.5 over the same period
of 2006, and the output of natural gas rose by 14.7% to 16.71
billion m3, being 17.4 percentage points lower from the same
period of 2006.
   In the first quarter of 2007, the crude oil processed amounted
to 78.36 million tons, an increase of 5.6% over the same period
of 2006, and the growth being 2.0 percentage points higher. The
output of gasoline and kerosene continued to increase, of which
the output of gasoline was 14.707 million tons, a rise of 5.5%
and the output of kerosene increased by 0.7% to 2.537 million
tons. The output of fuel oils dropped continually.
    In the first quarter of 2007, the output of chemical
fertilizers reached 13.314 million tons, a rise of 15.1% over
the same period of 2006. Among the chemical fertilizers, the
output of urea and phosphorus fertilizers was 6.146 million tons
and 2.875 million tons, an increase of 16.5% and 10.0%
respectively over the same period of 2006. Pesticides' output
was 353 thousand tons, a rise of 20.3% compared with the same
period of 2006, and the growth being 3.9 percentage points
higher.
    The output growth of some inorganic materials dropped
considerably in the first quarter of 2007, among them, the output
of nitric acid (containing 100% HNO3) was 475 thousand tons, an
increase of 14.4% over the same period of 2006, and the growth
being 1.6 percentage points lower.
    Organic materials showed different output changes in the
first quarter of 2007. The output of methanol was 2.356 million
tons, an increase of 48.2% over the same period of 2006, and the
output of glacial acetic acid dropped by 7.4% to 344 thousand
tons.
  In the first quarter of 2007, the output of plastic resins and
copolymers rose by 19.7% to 7.233 million tons in response of
strong demand.
   The output of synthetic rubbers reached 508 thousand tons in
the first quarter of 2007, an increase of 6.8% over the same
period of 2006, among which the output of cis-1,4-polybutadiene
rubber increased by 10.9% to 117 thousand tons.
   The output of tires showed rapid growth in the first quarter
of 2007. The output of tires reached 111.042 million pieces, a
rise of 19.1% over the same period of 2006, among which, the
output of radial tires rose by 32.5% to 48.909 million pieces.

Prices

The average spot price of Blent crude oil was US$61.75 per barrel
in March 2007, an increase of 0.88% compared with the same period
of 2006.  
    The prices of most chemical fertilizers increased in March
2007. The average prices of urea, diammonium phosphate, and
potassium chloride were RMB1 805/t, RMB2 555/t and RMB1 980/t,
an increase of 0.3%, 1.8% and 4.8% respectively over those in
March 2006.
    Inorganic materials' prices showed different price change
according to the demand. In March 2007, the average prices of
sulfuric acid, hydrochloric acid and nitric acid were RMB470/t,
RMB521/t and RMB2 340/t, a drop of 7.8%, 14.6% and 3.7%
respectively from the same period of 2006. The average prices
of caustic soda (liquid) and soda ash were RMB640/t and RMB1
640/t, a rise of 23.1% and 5.8 respectively over those in March
2006.
    In March 2007, most organic materials showed a price growth.
The average prices of pure benzene, methanol and glacial acetic
acid were RMB9 500/t, RMB2 980/t and RMB6 400/t, a rise of 30.7%,
14.6% and 0.9% respectively over the same period of 2006.
    The prices of most plastic resins continued to increase in
March 2007. The prices of LDPE (low density polyethylene) and
PS (polystyrene), in particular, increased over 10%. The average
price of PVC reached RMB7 300 per ton, an increase of 5.8% over
the same period of 2006. The average price of
cis-1,4-polybutadiene rubber rose by 18.7% to RMB17 800/t.