Put into production by the end of 2026! How will the Huajin Ami project reshape the northern chemical landscape?

1. Project Progress and Production Schedule

at present, the construction progress of Huajin Ami Fine Chemical and Raw Material Engineering Project has exceeded 88%, and 23 of the 32 production units have been mechanically completed. According to the project schedule, the whole process of start-up and commissioning will be started in the second quarter of 2026, and the centralized production stage will be entered in the fourth quarter. Ideally, products will flow to the market at the beginning of the third quarter, and full production will be realized by the end of the year.

This is the second large-scale refining and chemical integration project planned to be put into operation in 2026 after Gulei Petrochemical. Both will be put into production in the second half of the year, which means that China's refining and chemical market will usher in a significant capacity increase impact in a short period of time. It is worth noting that with the tightening of the overall regulation and control of the chemical industry, there are only 2-3 large-scale refining and chemical integration projects under construction, and China's total refining energy is expected to stabilize at around 1 billion tons. Huajin Armei may become the final work of this round of refining and chemical expansion cycle.

2. Capacity Scale and Product Matrix

the project adopts a typical refining and chemical integration configuration: 15 million tons/year atmospheric and vacuum distillation unit, 1.5 million tons/year naphtha cracking unit, and 600000 tons/year C2 recovery unit, finally forming 1.65 million tons/year ethylene production capacity. More than 30 sets of oil refining and chemical plants are equipped downstream, covering dozens of categories such as gasoline, diesel, kerosene, styrene, ethylene glycol, PX, hydrogen peroxide, LPG, PE, PP, ABS, etc., with an annual product sales of about 15 million tons.

The strategic advantage of "reducing oil and increasing oil" is significant.: The biggest highlight of the project is the use of several sets of advanced cracking units such as wax oil hydrocracking, residual oil catalytic cracking, diesel hydrocracking, high propylene catalytic cracking, etc. The output of refined oil only accounts for 30% of the total crude oil processing, which is far lower than the 60%-70% level of traditional refineries. This product structure accurately fits the industry trend of peak demand for refined oil and continuous growth in demand for chemicals, and significantly improves the long-term competitiveness and anti-risk ability of the project.

The raw material end uses Saudi heavy and light crude oil with a light to heavy ratio of 1.1:1, which is basically full distillation range processing. At the same time, 2.8 million tons of raw coal and chemical raw materials such as acrylonitrile and methanol were purchased to build a flexible raw material guarantee system.

Regional Market Impact and Competitive Landscape Evolution in 3.

Bohai Bay Capacity Agglomeration Effect Accelerated after Huajin Armei is put into production, the Bohai Bay region will form a three-strong pattern of Hengli Petrochemical (20 million tons of oil refining +1.5 million tons of ethylene), Yulong Petrochemical (20 million tons of oil refining +3 million tons of ethylene) and Huajin Armei (15 million tons of oil refining +1.65 million tons of ethylene), with a total oil refining capacity of over 55 million tons/year and an ethylene capacity of over 6.15 million tons/year, the region has become China's third largest petrochemical industry belt with the Yangtze River Delta and the Pearl River Delta.

However, the concentration of production capacity also means fierce competition. Huajin Ami's main products such as PE, PP, styrene, ethylene glycol, and PX are highly overlapped with existing companies in the region, and homogeneous competition is inevitable. From the experience of Yulong Petrochemical's production in 2025, the new capacity will suppress prices in the short term, the regional spread will narrow, and the operating rate of small and medium-sized enterprises will face downward pressure.

Northeast market self-sufficiency rate increased: Before production, PE, PP, ABS and other products in Northeast China were mainly transferred from East China and North China, with transportation costs as high as 200-400 yuan/ton. After Huajin Amei is put into production, it can meet 30%-40% of the polyethylene demand in Northeast China, greatly reduce logistics costs, and enhance the competitiveness of downstream industries such as automobile manufacturing and home appliance production. Liaoning will have Huajin Ami, Hengli Petrochemical, Liaoyang Petrochemical and other units, with a total refining capacity of over 40 million tons/year, making it a veritable northern petrochemical town.

4. Trade Flow and National Market Transmission

the pattern of "transporting goods from the north to the south" has taken shape.: Relying on the advantages of Panjin port, Huajin Ami products will form a sales network of "based in Northeast China, radiating North China, southward East China and South China, and exported to Southeast Asia. The cost of shipping products to East China is about 150-200 yuan/ton, which superimposes the advantage of large-scale cost, forming price competition pressure on the East China market. This will change the traditional trade pattern of "East China products going north.

Export to Southeast Asia is an important channel of digestion. Southeast Asia's chemical production capacity is insufficient, the dependence on China's imports is high, Huajin Ami's PX, ethylene glycol, polyolefin and other products have geographical advantages. If 30%-40% of the products are sold overseas, it will effectively relieve the pressure on the domestic market.

Industry Impact and Investment Advice although the project has improved the self-sufficiency rate of the northeast market, most of the products will still be sold south, which will have a short-term impact on the national market. Traders need to pay attention to the price trend of homogeneous products such as PE, PP and styrene. Manufacturers should deal with the cost advantages of large-scale integrated projects through differentiated products, special services and deep cultivation of regional markets. Supply chain practitioners need to re-evaluate the logistics path changes and cost structure adjustments brought about by "transporting goods from the north to the south.

The production of Huajin Ami marks that China's refining and chemical industry has entered the integration period from the expansion period, the scale effect and technological advantages will dominate the future competition, and the participants in all links of the industrial chain need to make strategic adjustments in advance.