Sinopec's Large-scale Refining and Chemical Integration Project Commences

Sinopec stated on its interactive platform in response to investor inquiries that it expects the release of new domestic chemical production capacity to continue this year, resulting in persistent structural oversupply pressure. Coupled with the sharp rise in oil and naphtha prices triggered by the Middle East geopolitical conflict, chemical gross profit margins are under significant pressure. The company will closely monitor both domestic and international market conditions, dynamically optimize production, operation arrangements, and sales strategies, intensify efforts to expand domestic and overseas markets, and strive to enhance the quality of its chemical business development.

On April 10, in response to market reports claiming that "Tesla is developing a new, smaller, and more affordable electric SUV," Tesla China stated that the report is false.Previously, Tesla had halted production of its high-end vehicles, the Model X and Model S.

Institutional statistics show that the global polyethylene capacity growth is expected to be more than twice the demand growth. Until 2030, polyethylene demand growth is about 3.3 million tons per year, while the average capacity growth is 6.7 million tons per year. The growth in 2026 and 2027 may be particularly strong. Of the 34 million tons per year of reserve capacity by 2030, about 85% is under construction, mainly large steam cracking units supported by major oil and chemical companies. This surge in supply will drive a restructuring of the global polyethylene market. New, lower-cost large facilities will replace less competitive older assets. Starting from 2026, the pace of capacity closures in Europe and developed East Asia (including Japan and South Korea) will accelerate.

Global energy and chemical market information provider ICIS recently reported that, due to tensions in the Middle East, the Korea Federation of Plastic Industry Cooperatives (KFPIC) has called on its member companies to propose contingency plans to stabilize the continuously rising costs of raw materials. The federation comprises large, medium, and small enterprises engaged in synthetic resin processing and plastic product manufacturing in Korea, including members such as LG Chem and Lotte Chemical.

China Chemical responded to investor inquiries on the interactive platform, stating that the company's aerogel and phase change material production businesses are developing well and are currently in normal shipment. The production of ultra-high molecular weight polyethylene is not yet in operation. Its subsidiary, Hualu Company, possesses full-process technology and engineering capabilities for producing high-purity silicon (polysilicon) materials, making it the most technically comprehensive engineering company in this field with the highest market share in China. It is known as the "hidden champion" of the photovoltaic industry. The company supports the localization of upstream materials through its engineering capabilities, but has not yet engaged in the production of high-purity silicon (polysilicon).