A few days ago, the dangerous Chemicals Logistics Branch of the China Federation of Logistics and Purchasing released the 2023 report on the Development and Operation of China's Chemical Logistics Industry, pointing out that the size of China's dangerous chemical logistics market in 2023 was 2.38 trillion yuan, down 1.1% from 2.41 trillion yuan last year. Profits of the industry as a whole have declined due to factors such as tight market demand and the complex and changeable economic situation outside China. However, enterprises in the industry are still working hard to expand the market, nearly half of them have plans to purchase vehicle equipment and warehouse construction, and most enterprises still have expectations for expansion and development.

Liu Yuhang, secretary-general of the dangerous chemicals logistics branch of the China Federation of Logistics and Purchasing, told reporters that in the first half of 2023, China's petroleum and chemical industry achieved an operating income of 7.6 trillion yuan, down 4.4% from the same period last year; the total profit was 431.09 billion yuan, down 41.3% from the same period last year; global investment, consumption and trade imports and exports were also significantly weaker in 2023, the supply chain disturbance of the global industrial chain remained, and the world economy was facing greater downward pressure.

But on the contrary, China's petroleum and chemical industry is ushering in a new round of production peak, especially refining and chemical integrated units and new chemical materials projects. For example, China Shell Phase II, Sinochem Quanzhou, Changxing Island Hengli and other projects will be put into production, and China's total oil refining and ethylene production capacity will rank first in the world. At the same time, China has entered the middle and late stage of industrialization and urbanization, and the demand for building materials, decoration materials, household appliances and bedding which are closely related to the petrochemical industry are showing a shrinking trend.

"demand contraction is an unavoidable challenge for the petrochemical industry in the near future and in the future." Liu Yuhang pointed out that in the survey of dangerous chemical logistics enterprises, the association found that at present, dangerous chemical logistics enterprises have problems such as relatively low vehicle utilization rate, insufficient market demand, and great pressure on micro-operation. But at the same time, the market share of fine chemical logistics has increased to 20%, making it the third largest market after petrochemical products and oil products; advantageous enterprises with large-scale and integrated service capabilities continue to emerge, and the development of the industry can be described as both challenges and opportunities.

Compared with last year, this year, more dangerous chemicals logistics enterprises have expanded their business scope to the whole country, and even operate transnational business, and the proportion of enterprises only doing business in this city or surrounding provinces and regions has dropped by about 15 percentage points. "it can be seen that China's dangerous chemicals logistics enterprises are still working hard to expand the market in the face of depressed market demand. This also means that the competition in the industry market will be more fierce. " Liu Yuhang said that more than half of the companies surveyed still maintain confidence in future development, believing that industry demand will remain stable or increase slightly in the next 1-2 years. 48.5% of the enterprises have vehicle equipment procurement and warehouse construction plans, 21.2% have yet to be determined, and most enterprises still have expectations for expansion and development.

In order to promote the high-quality development of the industry, the association puts forward six suggestions to dangerous chemicals logistics enterprises: first, to ensure that safety investment is not relaxed; second, to adhere to technological innovation and actively save energy and increase efficiency; third, to pay attention to the introduction of talents; fourth, to enhance the capacity of the supply chain to provide one-stop service; fifth, to adhere to cash as the king, reduce costs and increase efficiency; sixth, to build consensus and tide over the difficulties hand in hand.

"the foundation for China's sustained economic growth is still there, and the chemical logistics industry still has room for development." Liu Yuhang said, "during the 14th five-year Plan period, the hazardous chemicals logistics industry has entered a critical stage of high-quality development. Safety, green, low-carbon, sustainable and high-quality are the themes of the industry's development. Industry enterprises should establish ecology, do competition and cooperation, strong links, and common development." Source: China Petroleum and Chemical Network