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The strong growth of Zhejiang's petrochemical industry is constrained by the resource bottleneck.
From the year-to-date, the petrochemical industry in Zhejiang Province still maintains strong growth from a macro perspective, but analysis of sub-sectors can reveal that there is a serious imbalance between the industrial chain links, and the constraints of resource bottlenecks are increasingly serious. The figures just counted by Zhejiang Petrochemical Industry are delightful: From January to May, the total sales revenue and total profits of the province's petrochemical industry increased by 36.9% and 95.1%, respectively, over the same period of last year, in the national petrochemical industry. China ranks in the front ranks and its sales revenue ranks third in the country. The growth rates of sales revenue in Ningbo, Hangzhou and Shaoxing reached 47%, 38%, and 37% respectively. The petrochemical industry has become an important force driving economic growth in Zhejiang. After a period of cultivation and development, Zhejiang has formed a number of key chemical companies with obvious advantages in scale and leading domestic technical and technical levels, such as Zhenhai Refinery, Hangzhou Zhongce Rubber Co., Ltd., Ningbo Lucky Gold Chemical Co., Ltd., Juhua Group companies. At present, Zhejiang’s monthly sales revenue of more than 100 million yuan has increased from 7 in last year to 14 now. The introduction of foreign capital and private capital has also led to the emergence of a number of emerging companies with flexible and dynamic mechanisms. However, the development of Zhejiang's petrochemical industry is also facing great constraints. The “two big heads and the middle ones†of the industrial structure led to a serious imbalance in the development of the entire chain. Performance in the upstream raw materials industry showed a significant increase in efficiency, slowdown in downstream product growth, and decline in fertilizer production efficiency. At the same time, the constraints of resource bottlenecks have further manifested itself. In Ningbo, where economic development is most active, the per capita water resource occupancy is only 1,180 cubic meters, which is only 55% of the national average. Per capita arable land is less than half of the national per capita, and the reserve resources are extremely limited. This year's comprehensive shortage of raw materials, coal, electricity, land and even water resources has greatly limited the development of chemical companies, especially small and medium-sized enterprises. Some new construction projects, such as Hangzhou Zhongce Rubber Construction Co., Ltd. invested heavily in construction projects, could not be put into operation due to power supply problems and suffered heavy losses. According to statistics, from January to June this year, the purchase price of Zhejiang's energy raw materials rose by 12.53%. As a considerable part of the downstream products exceeds supply, the ex-factory prices of industrial products rose by only 4.45% over the same period, and the gap between the two increased to 8 percentage points. This gap has reached a maximum over the years. Therefore, changing the mode of economic growth and supporting the sustained and rapid growth of the industry economy with as little energy input as possible has become the only way out of the predicament.