China Petroleum and Chemical Industry Federation (CPCIF) has worked out guiding ideas on development plan of petrochemical industry in 2016-2020 and submitted the work to the government, said a report by Shanghai Securities News on Monday.
Adjustment of industrial structure would be accelerated and private players are set to have greater market access to downstream stream, said the report. China would see commissioning of multiple larges-scale refineries around 2020 with combined refining capacity of 51 million tonnes, according to market information supplier ICIS.
Cheap iron and steel as well as other raw materials provide sound opportunity for private companies to cut into the petrochemical industry despite existing overcapacity, according to industry insiders.
In 2015, China approved several local independent refineries to import crude oil directly in the form of non-state trade in a bid to drive up market competition.
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