Nantong Jinchao Machinery Co., Ltd. , https://www.ntjinzhaomachine.com
Liaotong Chemical Industry Co., Ltd. is a super-large chemical enterprise supported by the petrochemical industry and supported by the fertilizer industry. It is the fourth largest petrochemical company following PetroChina, Sinopec, and CNOOC. The actual holding company is the Weapon Group and the Zhenhua Group, a subsidiary of the Weaponry Group. The oil has already obtained the real right to import crude oil and can be directly supplied to Liaotong Chemical Production.
In the fertilizer industry, the company is one of the largest domestic urea (gas head urea) production bases in China, with a production capacity of 1.5 million tons of urea. The sales regions are mainly in the northeast and Xinjiang, and currently occupy more than 90% of the market in Liaoning, in the south of Xinjiang. The area has nearly 50% market share. Due to the increase in natural gas prices, the production cost of urea increased by about 4% over 2009, which reduced the profitability. However, due to the serious natural disasters of domestic agricultural products this year, it is expected that the country will increase agricultural input next year, which will drive up the demand for urea and raise the price of urea. Business will remain stable.
In terms of the petrochemical industry, the current critical link in the chemical industry chain of the Weapons Group is the refining business, and the development platform for this link is Liaotong Chemical. The company has a refining capacity of 5 million tons/year. The diesel production capacity is 1.8 million tons, and the ethylene production capacity is 450,000 tons. All the crude oil needed for production is imported from abroad. The product diesel oil is mainly sold to China National Petroleum. The inventory crude oil price determines the production cost. The price of diesel is determined by the government. The profitability of diesel business will fluctuate violently with the fluctuation of crude oil prices, and the flexibility will be higher. Due to the proliferation of global liquidity, causing a chain reaction in commodity prices, it is expected that international crude oil prices will continue to rise, but there is little possibility of substantial rises, and it is more likely to maintain high levels of shocks; at the same time, the NDRC raised domestic diesel prices and reduced Refining costs pressures. The company's “Twelfth Five-Year Plan†plans to increase refining capacity to 10 million tons and ethylene production capacity to 1 million tons. The petrochemical business will occupy an absolute position at that time. It is expected that the stable growth of the diesel and ethylene business in the future will be the main direction for the company's development.
Liao Tong Chemical: Domestic new petrochemical giant
Petrochemical is a highly cyclical industry. Similar to the macroeconomic cycle, it experiences a cyclical change from low to high every 8 to 10 years. The profitability of products is almost the same as the cyclical fluctuations in the industry, while the non-synchronous growth of supply and demand is the industry cycle. The main reason for sexual fluctuations. The business of diesel and ethylene was significantly affected by the economic cycle. Since 2009, due to the delay in the release of new production capacity, the suspension of production and maintenance of equipment, and the better-than-expected downstream demand, the economic development of the entire chemical industry exceeded expectations. At present, there is a shortage of diesel supply in the country. It is expected that diesel and ethylene prices will remain high, and the prosperity of the petrochemical industry is expected to continue to increase.