China's petrochemical output rises in 2012; profit dips

05 Feb '13

2 min read

In spite of consistent rise in overall output during 2012, China’s petrochemical industry witnessed a year-on-year fall in profits on account of poor demand, a statement from the National Development and Reform Commission (NDRC), leading economic planner of the country, said.

Rising at a rate of 12.9 percent year-on-year, the overall output of Chinese petrochemical industry grew to 10.86 trillion yuan or US$ 1.73 trillion in 2012.

Due to waning domestic and international demand, the output continued to experience month-on-month declines during first six months of the year, however it started rebounding in the second half of the year on account of the Government’s pro-growth policies, the statement said.

Nonetheless, the sector’s profits dipped 9.4 percent to 324.9 billion yuan during January-November 2012.

As per NDRC’s estimates, the sector’s profit for the entire year would have dipped by 10 percent year-on-year, the statement said.

The Chinese Government introduced a series of measures during last year to boost the slowing economy. The measures included reducing benchmark interest rates, approving large-scale infrastructure projects and easing the commercial bank’s reserve requirement ratio.

According to the National Bureau of Statistics, China’s economy posted a 7.8 percent growth during 2012, which is the lowest growth rate since 1999.

However, after a seven-quarter downtrend, the growth rate rebounded to 7.9 percent in the last quarter of 2012.

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