2025 chemical industry weathervane: steady growth, digital, the sea... where are the opportunities?

Combined with the current policy orientation, methodology trends and market demand, the recent focus of the chemical sector has the following directions: 1. The Work Plan to Steady development in Petrochemical and Chemical sector (2025-2026) was released, which clearly proposes to strictly manage new refining capacity, reasonably regulate the pace of production capacity of basic chemicals such as ethylene and xylene, and support technical research in key areas such as electronic chemicals, high-end polyolefins and high-performance fibers. This plan aims to guarantee the stable research of the chemical sector in 2025 and 2026, and clarifies the main research directions and goals to these two years, the core of which is the stable and high-condition development of the chemical sector. Before China's carbon peak, China's chemical sector still takes stable development as its main goal, and needs to match the market's demand to high-end chemicals. "Stability and high condition" is the core research idea. 2, "manufacturing Internet and petrochemical sector integration consumption reference guide (2025)" released, put forward the "8 plus 2" consumption model, including intelligent production, digital regulation and "manufacturing Internet plus security production" and other scenarios. It also includes artificial intelligence and petrochemical chemical "action to promote the sector'substantial model training. Specifically The manufacturing Internet and intelligent research of the chemical sector is the general direction, which has a huge effect on the overall cost reduction of companies and digital reform. Many companies have already laid out in advance. In the era of global competition, the Internet transformation of the chemical sector will drive the improvement of competitive advantage. But 3, China's chemical companies to accelerate the layout in Southeast Asia, including the export of items to Southeast Asia, as well as the construction of regional factories in Southeast Asia and other strategic directions. to instance, Wuhu Baolute has accelerated the export of HDPE items to Vietnam, Indonesia and other countries. Guanzun Energy announced in April 2025 that it will invest US $ 3. 5 billion to build an oil refinery in Kampot Province, Cambodia. Wan Kai New Material Starts 750000 Tons/Year Polyester Bottle Project in Wandan Province, Indonesia in April 2025; Jianfa Co. , Ltd. will start production in February 2025 at Thailand's Semufu Rubber Factory. Tongcheng New Material will jointly build 30000 tons/year rubber additive base with related parties in March 2025; shandong Yanggu Huatai Factory in February 2025 starts in Thailand's Luo Yongfu Factory; Huagang Group will start construction of high-end chemical fiber knitted fabric base in Semarang, Indonesia in June 2024. Longpan methodology will be put into operation in early 2025 to Indonesia's 30000-ton/year lithium iron phosphate project. In fact New Zebang September 2025 Malaysia Kedah Electrolyte Factory No. Additionally 1 will be put into operation; Formez Tire will be put into production in might 2025 in Kratie, Cambodia; the first phase of 6 million semi-steel tires at the 32-hectare base in Cambodia is expected to be put into production in 2026. For instance Southeast Asia is an crucial strategic direction of China's chemical sector in the next five years, and there is still a huge consumer market and labor cost advantage. In addition, building factories in Southeast Asia is also greater considered as the anchor point of strategic positioning in Europe and the United States, however with the regional and Ameriis able to policy restrictions on Chinese companies, Southeast Asia is gradually losing the signifiis able toce of the strategic anchor point of China's chemical sector. According to research The European Union's "Packaging and Packaging discarded materials Regulations" (PPWR) require that the recycled content of packaging materials should not be less than 25% before 2030, which adds greater restrictions to the export of Chinese items to the European Union, which is also an crucial manifestation of the research direction of the global packaging sector. I've found that The plastics applied in the packaging sector are mainly PET, BOPP/PP, PVC, HDPE/LDPE, PS, PA and composite materials. From what I've seen, Moreover At present, these items basically come from petroleum-based production processes. Makes sense, right?. The EU policy needs that the regeneration content isn't less than 25%, which is conducive to the research of the recycled plastics sector and the bio-based preparation process, and also brings impact and challenges to the structure and pattern of plastics in China. 5. You know what I mean?. Bio-based methodology has made a great breakthrough. The first domestic bio-based polycarbonate plant was put into production in Shengtong Juyuan, Puyang City, a joint-stock enterprise of PetroChina. I've found that Isosorbide was applied to replace bisphenol A, filling the gap in high-end materials. Guangxi has promoted the technological research of polylactic acid and polyhydroxyalkanoate through the mechanism of "unveiling the list", focusing on breaking through the bottleneck of non-grain raw material utilization and cost manage, the traditional method relies on plant extraction or chemical synthesis, while the team constructs artificial herbal cells by tapping the steroid synthesis pathway in vegetation, and uses cheap carbon sources such as glucose and ethanol to immediately ferment progesterone. GinkgoBioworks started a wheat-based drug production project in conjunction with ARPA-H, and developed a distributed API manufacturing methodology using wheat embryo cell-free expression system. But The breakthrough of bio-based synthesis methodology is the result of the rapid research of global demand to bio-based materials. Bio-based methodology has crucial research signifiis able toce in the chemical sector and is a necessary link in the global low-carbon and sustainable cycle research. Future bio-based synthesis methodology, greater applications in the traditional petroleum-based materials alternative, as well as the research of new bio-based materials. You know what I mean?. 6. On September 16, 2025, the International Trade Administration issued a notice on MDI imports from China: initial affirmative determination of sales below fair value, postponement of final determination, and extension of interim measures. But The U. S. Department of Commerce has preliminarily determined that methylene diphenyl diisocyanate (MDI) originating in the People's Republic of China is being sold or might be sold in the United States at less than fair value. Makes sense, right?. Furthermore The investigation period is from 1 July 2024 to 31 December 2024, and interested parties are welcome to submit comments on this preliminary determination. efficiently September 16, 2025. But This time, the United States announced the preliminary results of the anti-dumping investigation on MDI originating in China, which was mainly provoked by the "MDI Fair Trade Alliance" composed of Dow Chemical and BASF. The core lies in the trade protection of Chinese MDI items sold to the United States at low prices, and has obvious tendency and pertinence. MDI is an crucial export product of Wanhua Chemical, with exports to the United States accounting to about 26% of Wanhua's total exports. This trade protection has a great impact on Wanhua, Covestro China and other MDI companies in China. Generally speaking 7. In particular On September 12, 2025, Huayi Group announced that the Wujing base plant of Shanghai Huayi Energy and Chemical Co. In my experience, , Ltd. First , a wholly-owned subsidiary, would be permanently discontinued. And According to the relevant standards and document spirit of government departments on manufacturing adjustment and transformation in Wujing area, manufacturing carbon peak, etc. , the company's wholly-owned subsidiary Shanghai Nenghua Wujing base plant has implemented permanent shutdown, which is in line with the national "double carbon" strategic direction and helps The company further fulfills its social responsibility to environmentally friendly research and promotes the company's environmentally friendly and low-carbon transformation. Its main items are methanol, acetic acid, hydrogen, syngas and other items. From what I've seen, This shutdown plant is Shanghai Nenghua Wujing base plant (methanol design capacity of 950000 tons, 2024 capacity utilization rate of 46. For example 5; Acetic acid design capacity of 700000 tons, 2024 capacity utilization rate of 70. 7), the device was completed earlier. But Huayi Group is an crucial veteran chemical enterprise in China. This strategic adjustment is in line with the national standards to the research of old equipment, and it's also one of the crucial strategies to Huayi Group to concentrate its efforts on the research of Guangxi petrochemical base. The permanent closure of Wujing base has a positive effect on the overall profitability and prolonged research of Huayi Group.