Basic chemical industry

On the other hand, although the chemical industry in our country has developed rapidly, there is a certain gap between the technical level and the international advanced level. Due to the low added value of chemical products technology in our country, the profitability of enterprises is limited, and some enterprises can not afford the large amount of capital and talent costs required for the research and development of new products and new technologies, resulting in the lack of scientific research and technology reserves. Therefore, insufficient investment in research and development has become an unfavorable factor restricting the sustainable development of our country's chemical industry, and has limited the development speed of our country's chemical industry to a certain extent.

Finally, a simple analysis of the industry profit level change trend and reasons.

From the perspective of industry profit level, the chemical industry has developed rapidly in recent years, and the overall scale has continued to grow. In 2019, the listed companies of "chemical raw materials and chemical products manufacturing" in the industry classification of the CSRC achieved operating income of 1.2 trillion yuan and total profit of 43.84 billion yuan.

The price of chemical products is greatly affected by market supply and demand in the short term, and the long-term trend is greatly affected by production costs and macroeconomic, and the profit level of the industry generally fluctuates with the change of macroeconomic.

At the same time, product profit margins vary greatly according to chemical varieties, uses and technical levels. In particular, for fine chemical products, the gross profit margin of products with technical advantages and high added value is higher than the average level of the industry. Although the general production process technology of basic chemical products is more complex, the single-line production capacity is usually larger, and the competitive advantages of enterprises with good cost control, safety and environmental protection measures are in place, and are close to the target market or raw material origin are more obvious