Research and Markets has announced the addition of the "Basic Chemical Manufacturing Industry in China 2012-2016" report to their offering.
The analysts forecast the Basic Chemical Manufacturing industry in China to grow at a CAGR of 14.7 percent over the period 2012-2016. One of the key factors contributing to the industry growth is the increased demand for chemicals from downstream industries. The Basic Chemical Manufacturing industry in China has also been witnessing an increase in production capacity. However, the decline in the value of exports from the country could pose a challenge to the industry growth.
The key vendors dominating this space include Air Liquide Shanghai Co. Ltd., Hubei Xingfa Chemicals Group Co. Ltd., Sichuan Chuantou Chemical Industry Co. Ltd., Xuzhou Guohua Industry and Trade Co. Ltd., and Yunnan Malong Industry Group Co. Ltd.
The other vendors mentioned in the report are Praxair Shanghai Meishan Inc., Shanghai Zhongyuan Chemical Co. Ltd., Sichuan Linchen Enterprise Group Co. Ltd., Xiangtan Electrochemical Group Co. Ltd., and Xianggang Messer Gas Products 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.
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Source: http://www.researchandmarkets.com