Growth across three key metrics, profits reverse four‑consecutive‑quarter decline

More than halfway through the first year of the 15th Five‑Year Plan period, the petrochemical industry has delivered encouraging results. All three core economic indicators improved in the first half‑year, with profits reversing four consecutive quarters of decline. The full‑year growth rate is projected to follow a “high‑early, low‑late” trajectory. Operating revenue is expected to stay near the historic high of RMB 16 trillion, while total profits will exceed RMB 900 billion.

Fu Xiangsheng, Vice‑President of the China Petroleum and Chemical Industry Federation (CPCIF), reported that the whole industry posted operating revenue of RMB 8.05 trillion in the first half‑year, a year‑on‑year rise of 7.8%; total profits reached RMB 571.39 billion, surging 54.9% year‑on‑year; total import‑export volume stood at USD 478.66 billion, up 7.3% year‑on‑year. The industry’s economic performance featured six highlights: notable improvement in business results, steady output growth of petrochemical products, stable consumption of major products, robust export momentum for petrochemical goods, crude oil processing and refined oil output & sales in line with expectations, and marked divergence in business performance among enterprises.

Meng Yan, Second‑Level Inspector with the Operation Monitoring and Coordination Bureau of the Ministry of Industry and Information Technology (MIIT), noted that buoyed by higher prices of petrochemical‑related products, the petroleum refining sector swung from losses to profits in the first half‑year. Profits of the chemical industry jumped 67.8% year‑on‑year, contributing 3.5 percentage points to profit growth of all industrial enterprises above designated size, and playing a positive role in stabilizing industrial economic performance.

“Nevertheless, we must be sober‑minded. The foundation for sustained industry improvement still needs consolidation. Imbalances in supply‑demand and industrial structure remain prominent, and foreign trade conditions are turning tougher,” stressed Fu Xiangsheng. “We also need to keep track of emerging industry dynamics and trends: deepening industrial adjustment and restructuring, accelerating digital‑intelligent upgrading, intensified green‑low‑carbon initiatives, and advancing energy transition, so as to seize critical opportunities.”

Digital‑intelligent transformation constitutes a key driver for high‑quality development of the petrochemical sector. Wang Jiangping, Member of the 14th National Committee of the Chinese People’s Political Consultative Conference and former Vice‑Minister of MIIT, proposed comprehensive, in‑depth integration of artificial intelligence into petrochemical operations. Leveraging the characteristics of process‑industry workflows, AI should cover the full spectrum of R&D, production and safety. A demand‑driven approach shall be adopted, following the implementation path of scenario‑driven application, data‑enabled foundation, model‑empowered operation and safety‑guaranteed controllability.

Meng Yan advised the industry to pursue innovation and high‑end upgrading. It should capitalize on the explosive growth of AI‑related industries to revolutionize R&D paradigms, production modes and industrial forms, and advance intelligent, green and integrated development across the sector.