The global economic crisis made the external demand for chemical products sluggish. The sharp fluctuations in oil prices made the profits of the chemical industry rapidly compressed. China's chemical industry entered the most difficult period in the second half of 2008 and will be forced to accelerate from the "re-consumption of bulk commodities" growth model to refined development. Directional transformation. Under the background of the country's strategy of investing heavily in expanding domestic demand, refinement of the development sector will raise the banner of chemical development.

In the field of deep processing of halogen minerals, potassium fertilizer and lithium carbonate are scarce resources, and the supply of products is in short supply. In the chemical new materials, silicones and engineering plastics are still in the early stage of growth, and the market demand is huge. The pesticide industry benefits from China's continuing agriculture support policy. New pesticides will replace glyphosate as a profitable star in the pesticide industry. The civil explosive industry policy barriers are high and benefit from post-disaster reconstruction and railway construction. The dye industry is highly concentrated. In the future, the country’s support for textile and clothing will continue to increase.

The fourth quarter of this year, the chemical industry is very difficult, mainly for the following reasons. First of all, the price of oil has soared and the price of chemical products has been closely followed, while the cost of raw materials inventory is still at a high level, leading to a sharp decline in corporate profitability. Secondly, the severity of the economic crisis has suddenly increased. As a result, downstream demand has seen a surge in sentiment, demand has rapidly entered a low point, prices have continued to be suppressed, and even cost inversion has occurred. As a result, corporate profits have become more difficult, leading many chemical companies to stop production and limit production.

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