What are the challenges and opportunities for China’s petrochemicals?

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China’s petrochemical industry is experiencing unprecedented capacity growth. Combined with weak demand bruised by lockdowns during the pandemic, the lengthening market weighs on operating rates and margins. Moreover, under the regulations of energy saving and carbon neutral targets, some small assets that can’t meet the requirements are expected to phase out, together with those that are uneconomic. The industry will experience a round of reshuffling, in which some companies’ competitiveness will improve while others will wash out of this industry. How to survive in this weak market and improve competitiveness have become urgent questions that the petrochemical industry needs to consider. Read on for a more detailed analysis of the challenges and opportunities facing China’s petrochemical industry and the strategies that some companies are adopting to improve their competitiveness.

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