Will Xinjiang chemical industry usher in a big explosion?

Pingtou Brother believes that the chemical industry in Xinjiang, because of its unique energy structure and special geographical location attributes, has led to the current unbalanced product structure in Xinjiang. In addition, due to the characteristics of sparse population in Xinjiang Province, the local digestion of chemicals in Xinjiang, about 40%-50% of the total chemical scale, there are still most of the chemicals, there are sales outside Xinjiang. When this happens, the production enterprises need to face huge logistics and transportation costs, which also brings a significant decline in the competitiveness of chemical enterprises in Xinjiang province.

However, Brother Pingtou saw that with the slow progress of China's Belt and Road process, especially the transformation of China's energy structure, the chemical industry in Xinjiang has brought huge development opportunities, and this opportunity is being seen by more and more investors.

Just like Xinjiang's BDO products exported to Europe, many BDO production enterprises have been derived from Xinjiang's cheap natural gas resources.

According to the "2021-2030 China Chemical Location Analysis Report", Pingtou Brother saw that the BDO production capacity in Xinjiang has been close to 1 million tons/year, and the main production enterprises are Xinjiang Meike, Xinjiang Tianye, Xinjiang Lanshan Tunhe, Xinjiang Cathay Xinhua and Xinjiang Xinye. BOD products produced in Xinjiang region, in addition to the new local production of PBAT, there are a large number of BDO products are sold to Europe.

According to customs data, the total amount of BDO exported from Xinjiang to Italy in 2020 has exceeded 7,000 tons, and there are also cases of exports to other European countries such as Germany.

In addition, due to the continuous progress of China's "Belt and Road" project, the Xinjiang region is generating a large number of new chemical demand driven by end demand, which has brought the largest chemical industry investment boom in Xinjiang's history.

According to the statistics of chemical projects under construction in the "2021-2030 China Chemical Location Analysis Report", it can be seen that from 2021 to 2030, more than 30 chemical projects will be under construction in Xinjiang, and the total output capacity of chemical products involved in the projects under construction will exceed 15 million tons/year. It belongs to the chemical industry in Xinjiang region with the fastest growth rate of investment over the years.