Despite China’s slower economic growth, chemical product sales are expected to remain strong. In 2011, the output of the country’s chemical industry increased 9.0% to RNB 7.2 trillion ($1.17 trillion), according to KPMG China. Through 2015, industry output is expected to grow in the range of 9%–11% annually. The China Petroleum and Chemical Industry Federation estimates that the value of China’s chemical market will rise 87.9% from 2011 to 2016 to $1.92 trillion, with a compound growth rate of around 13.4%. Although this is down from the 22.3% growth during the previous five-year period, the growth rate exceeds other regions. Growth is expected to be driven by higher value chemicals, as the government emphasizes modernization, sustainability and environmental concerns. A growing consumer products market should benefit fine and specialty chemical makers. In addition, suppliers of agricultural chemicals and companies serving the automotive and pharmaceutical markets are expected to do well. The three largest petrochemical suppliers in China are Sinopec, PetroChina and Shanghai Seccon Petrochemical, according to IHS Chemical.

Source: Chemical Week