Benefit product price rises, the chemical industry boom maintains the recovery posture
China’s macroeconomic growth picked up from 2016, benefiting from a rebound in investment in infrastructure, real estate and manufacturing as well as a pick-up in exports.In the first three quarters of this year, China’s GDP grew by 6.8%, down slightly from the previous three quarters and 0.1 percentage point higher than the first three quarters of 2016.In terms of industrial added value, in October 17 years ago, the growth rate of industrial added value above a certain scale remained at 6.7% year-on-year, and the overall macro economy was still recovering.

GDP growth trend

Industrial added value grew year-on-year


Since the second half of 2016, the revenue and profit growth of the chemical industry have rebounded, benefiting from the rebound of international oil prices and the rise of chemical products prices.From January to September 2017, the operating income of chemical raw materials and chemical products manufacturing industry reached 6,949.73 billion yuan, up 14.70% year-on-year, and the total profit reached 452.16 billion yuan, up 37.90% year-on-year.Profit growth has been driven by the continued improvement in the overall profitability of the chemical industry, which has benefited from rising product prices.

Chemical raw materials and chemical products manufacturing revenue and profit growth picked up

PPI for the chemical industry

From the perspective of profitability, the gross profit margin of the chemical raw materials and chemical products manufacturing industry in the third quarter of 2017 was 14.23%, up 0.75 percentage point year-on-year and up 0.60 percentage point quarter-on-quarter. The profitability remained at a six-year high.The improvement of profitability of the chemical industry is mainly benefited from the rising prices of chemical products, which is mainly benefited from the overall increase of commodity prices since the second half of 2016 and the improvement of supply and demand brought by the improvement of environmental protection supervision.In addition, the gross profit margin of the chemical fiber industry in the third quarter of 2017 was 9.43%, up 0.61 percentage points year-on-year.