What is the situation of the chemical companies?

The overall situation of chemical companies presents a state of steady growth and challenges coexisting. ‌
Overall situation of the industry
The chemical industry as a whole achieved steady growth in operating revenue in 2024, demonstrating strong risk resistance and market competitiveness. However, the significant increase in various expenses has put some pressure on the net profit margin. However, with excellent operational capabilities and asset turnover efficiency far exceeding peers, chemical companies still have good profitability.
Specific challenges and opportunities
Market environment: The global chemical industry will continue to face significant challenges in 2025, including sluggish economic growth, weak manufacturing end markets, and geopolitical tensions. Nevertheless, it is expected that global chemical production will continue to maintain positive growth, with the Asia Pacific region being the main driving force.
Regional development: The total output value of China's chemical industry will reach 19.1 trillion yuan in 2025, a year-on-year increase of 6.2%, with the chemical new materials sector becoming the core engine of industry growth. The central and western regions have gradually increased their market share due to their resource advantages.
Specific products: The phenol industry experienced a dramatic change in production capacity in 2024, with China's phenol production capacity accounting for 41% of the global total, but the capacity utilization rate is relatively low. In addition, the increasing demand for bisphenol A has driven the deep binding of the phenol ketone bisphenol A-PC industry chain.
Policy impact: The raw material pharmaceutical industry emphasizes green development during the 13th Five Year Plan to 14th Five Year Plan period, and it is expected that the domestic raw material pharmaceutical industry structure will be more optimized by 2025, with a significant increase in the proportion of green production.
Future trend prediction
In the coming years, global GDP and industrial production growth expectations will be slightly lowered, but global chemical production is expected to continue to maintain positive growth. The Chinese chemical industry will continue to maintain its growth trend, especially in the central and western regions where its share will further increase. The raw material pharmaceutical industry will also achieve high-quality development under green development, with a significant increase in industry concentration.