Chemical material market trend analysis

Competitive landscape of the global chemical new material industry

As a sub-industry of the new materials industry, the current global chemical new materials industry has formed a three-level echelon competition pattern, and each country has its own advantages in the development of industries. The first echelon is the United States, Japan, Europe and other developed countries and regions, which have absolute advantages in economic strength, core technology, research and development capabilities, and market share. The second tier is South Korea, Russia, China and other countries, and the industry is in a period of rapid development. The third echelon is Brazil, India and other countries.

From a global perspective, the monopoly of the new chemical materials industry has intensified, and technical barriers to high-end materials have become increasingly apparent. Large-scale multinational companies rely on their advantages in technology research and development, capital, and talents, and use technology and patents as barriers to occupy a leading position in most new material products with high technology content and high added value.

How about China’s chemical market?

As far as I know, China’s chemical new materials industry is mainly divided into three competitive echelons:

The first tier are foreign-funded (including Taiwan-funded) enterprises. Such enterprises have rich industry experience, complete industry foundation, generally large-scale installations, high technical level, strong sales capabilities, relatively matched product chains, clear strategies and standardized operations. High-quality basic products and modified products occupy the high-end and mid-end markets, so they are often market leaders and obtain relatively large profits.

The second echelon is dominated by large state-owned enterprises, and a small number of small and medium-sized state-owned enterprises have entered the market earlier, accumulated certain industry experience, complete industry foundation, a certain scale of equipment, and strong technological accumulation. The talent reserve and product chain are relatively complete, the operation and management are standardized but the mechanism is not flexible. Most products enter the mid-range market, some products are still at the low end, and the profits obtained are not stable enough. Some companies are still suffering from the disadvantages of traditional state-owned enterprises to a certain extent.

The third echelon is dominated by private small and medium-sized chemical companies with weak industry foundation, small scale of installations, generally low technical level, incomplete product chain, flexible operation, sensitive to market changes, short-term behavior, and market entry Fast, a small number of large-scale companies with a strong technical foundation are in the low-end market for basic products, and most companies are distributed in a wide and dispersed terminal product market. Some companies in this echelon are highly speculative, enter the market quickly when profits are high, participate in sharing high profits, and exit immediately when profits are low; some companies survive under the protection of local government policies, use low-cost resources or energy, and ignore environmental protection and environmental protection. Non-standard behaviors such as quality, flexible marketing, and low labor costs compete for low-cost prices.

It is worth noting that among private enterprises, some large and medium-sized enterprises with certain competitive strength and relatively standardized operations have also grown up. Some companies have great potential for rapid growth through joint ventures or strategic alliances with first-tier foreign-funded companies. A few large and medium-sized private enterprises have begun to pay attention to the medium and high-end markets of basic products and modified products of new chemical materials, and are implementing large-scale project investments.

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