TechNavio recognizes the following companies as the key players in the Basic Chemical Manufacturing Industry in China: Hubei Xingfa Chemicals Group Co. Ltd., Yunnan Malong Industry Group Co. Ltd., Sichuan Chuantou Chemical Industry Co. Ltd., Xuzhou Guohua Industry and Trade Co. Ltd., and Air Liquide Shanghai Co. Ltd.
Commenting on the report, an analyst from TechNavio’s Hardware team said: ”Despite the fluctuating macroeconomic conditions, the profitability of the industry vendors has not been affected significantly. This is mainly attributed to the low product prices and high fixed costs. Currently, the average profit margin of vendors in the industry is about 8 percent, and this is expected to increase during the forecast period. Moreover, it is expected that due to increasing domestic demand the profitability of the overall industry will increase during the forecast period. One of the major reasons for the increasing profitability of the industry is the proximity to customers. Proximity to the customers reduces the distribution costs and avoids the risk of currency rate fluctuations. All these factors are influencing the increasing profitability of the vendors and thus industry growth.”
According to the report, one of the main drivers in this industry is the increasing demand for basic chemicals from downstream industries. The major downstream industries such as Iron and Steel, Fertilizer Manufacturing, and Phosphate and Chemicals are witnessing major growth over the last few years. As a result, the demand for basic chemicals has been increasing. Thus, the growth of the Basic Chemicals Manufacturing industry is analogous to the GDP growth in China.
Further, the report states that one of the major challenges in this industry is the declining value of exports. The declining value of exports is due to the reduced demand for basic chemicals manufactured in China in the overseas markets.
The report also includes a discussion of the other vendors operating in this market. The other vendors in the market are Sichuan Linchen Enterprise Group Co. Ltd., Praxair Shanghai Meishan Inc., Xiangtan Electrochemical Group Co. Ltd., Xianggang Messer Gas Products Co. Ltd., and Shanghai Zhongyuan Chemical Co. Ltd.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors. For further information on this report, please visit https://www.technavio.com/content/basic-chemical-manufacturing-industry-c…
TechNavio, the market research platform of Infiniti Research Ltd., publishes periodic market research reports on niche and emerging technologies. For more information on our market research, please visit https://www.technavio.com/hardware
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TechNavio Announces the Publication of its Research Report – Basic Chemical Manufacturing Industry in China 2012-2016
