Will Xinjiang chemical industry usher in a big explosion?

According to Pingtou brother learned that the chemical industry in Northwest China, because of its unique geographical location, has always been unable to enjoy the development dividend brought by the rapid development of the coastal areas of East China, most of the chemical products in Northwest China, mainly through the way of automobile and fire transport, transport to East and South China. In addition, the industrial chain planning of chemical enterprises in Northwest China, as well as the product positioning of integrated enterprises, are mainly to facilitate long-distance transportation. Therefore, the chemicals in the Northwest region are often dominated by solid chemicals, because the logistics cost of solid chemicals is significantly lower than that of liquid and gas chemicals.

In the location pattern of China's chemical industry, the northwest region has always seized the market with a low-price strategy, because the main chemicals are still dominated by homogeneous products, such as polyethylene, polypropylene, coal tar, PVC and so on. In addition, as an important consumer market for chemicals in the northwest, East and South China, plus freight costs, still need to have a certain price difference with local chemicals, otherwise basically can not achieve the main normal sales.

Here, Northwest China refers to the northwestern provinces of China, mainly including Shaanxi, Shanxi, Gansu, Ningxia, Qinghai and Xinjiang. The Pingtou brother has to say Xinjiang province, because under the trend of changes in China's industrial pattern, the chemical industry in Xinjiang Province is undergoing tremendous changes, and this change is quietly underway.

Brother Pingtou has previously written about the location analysis of chemical industry provinces, such as Shandong "big", Fujian "new", Jiangsu "fine", what is the petrochemical industry in Zhejiang Province? Will Fujian become China's Next refining and Chemical Integration Center? "After in-depth analysis of Shandong petrochemical industry, I know that the title of" chemical province "is not so simple", "What to save you, Hebei Chemical Industry?" "We all underestimate the Liaoning petrochemical industry, his past brilliance is unmatched", interested can click to browse.

Just a few days ago, Xinjiang was also concerned by the world because of cotton, and Xinjiang's cotton is exported to the world at the same time, Xinjiang's chemical products have been exported to Europe in 2017.

According to relevant information, in May 2017, a Central European train loaded with 2,000 tons of liquid chemical BDO (1, 4-butanediol) left Korla and arrived in Ludwigshafen, Germany, after about 15 days. The 2,000 tons of BDO, produced by Xinjiang Mek Chemical Co., Ltd. using natural gas, are initially expected to be exported to BASF for the production of biodegradable plastic products.

And according to the investigation of Pingtou brother, the BDO products exported from Xinjiang have shown a substantial growth trend in the past few years.

Pingtou Brother believes that Xinjiang, as the most "marginalized" province in the northwest, Xinjiang's chemical products, if transported to East and South China for sale, need to be more than 50% or more than the freight cost of Shaanxi, Shanxi and other provinces, because Xinjiang is indeed too big. When you buy something online, the customer service tells you: "Dear, Xinjiang has to pay the freight!"

How big is Xinjiang? According to Baidu Baike, Xinjiang covers an area of 166 square kilometers, accounting for one-sixth of China's total land area. Xinjiang covers an area slightly larger than Henan, Shandong, Hebei, Beijing, Tianjin, Shanxi, Shaanxi, Hubei, Jiangsu, Shanghai, Zhejiang and Hunan combined.

Therefore, if the chemicals in Xinjiang are transported to East China by automobile, the freight of solid chemical products needs to be at least 1000 yuan/ton, and the freight of liquid chemical products needs to be at least 1400 yuan/ton, and the freight of gas chemical products needs to be at least 1500 yuan/ton. Under the premise of the imbalance of supply and demand of chemical products in China, the cost competition of chemical products has become the main direction of competition, and the substantial increase of freight will seriously weaken the competitiveness of chemical products in northwest China.

Therefore, in the chemical logistics pattern, the chemical products in Xinjiang mainly flow to the southwest region, which is close to the distance, so that the chemical products in Xinjiang are rarely seen in the main consumer markets, such as East and South China, which also gives people in the chemical circle the impression that the chemical industry in Xinjiang is weak.

So, what is the status quo of the chemical industry in Xinjiang?

According to the statistical data of the "2021-2030 China Chemical Location Analysis Report", Pingtou Brother saw that as of April 2021, the chemical industry in Xinjiang has 46 main chemical varieties, and some chemicals account for a small proportion of the national production capacity, but some products' production capacity has reached a high proportion. For example, the production capacity of BDO in Xinjiang accounted for 42% of the total national production capacity, the production capacity of 1-hexene accounted for 27% of the total national production capacity, and the total production capacity of PBAT reached 41% of the total national production capacity.

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.