The value of China's petrochemical output is expected to exceed ¥11 trillion this year, up 29% from 2010, the China Petroleum & Chemical Industry Federation said.
The growth rate will be slower than last year as overall economic expansion is under pressure to moderate as the government battles soaring inflation and the overheated property market, according to the Federation.
Gross petrochemical output saw the slowest year on year growth of 22.8% in November, shedding 13.3 percentage points from the best month this year, the Federation added. Monthly profit sagged 10.8% on falling prices in November.
Petrochemical profit will grow 22% to ¥810 billion and petrochemical exports will grow 30% to $590 billion in 2011, the Federation predicted.
Looking to 2012, the Federation cautioned that the industry would face challenges such as slower economic growth, reduced exports, rising resource prices and energy saving measures. However, policies to stimulate consumer spending may offset some of the impact, the Federation noted.
Possible changes to refined oil and natural gas pricing and the taxable threshold for resource-related proceeds will help the industry fare better, Haitong Securities argued.
It is up to the Chinese government to price oil and gas sold in the country, but there have been reports that some discretion might be left to the nation's top three oil explorers and refiners soon.
$1 = ¥6.33
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