Seven-Ministry Petrochemical Upgrade Policy to Accelerate Eli
Keywords: Petrochemical equipment upgrading, capacity elimination, industry concentration, policy dividend
On April 8, 2026, industry research institutions released an interpretation report on the recently issued policy of renovating and upgrading old petrochemical equipment by seven ministries and commissions.
The report pointed out that the policy will profoundly change the supply structure of China’s silicone industry.
Specific impacts on the silicone industry:
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The policy requires the upgrading or elimination of equipment that does not meet safety, environmental protection, and energy consumption standards by 2029. It is expected that 15%–20% of small and medium-sized backward silicone monomer capacity will be withdrawn from the market.
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The reduction of backward capacity will further tighten the overall supply of the silicone industry, supporting long-term stable operation of product prices.
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Leading enterprises with large-scale, integrated, low-consumption, and high-environmental-protection standards will obtain significant competitive advantages and policy dividends.
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The industry will accelerate the transformation from decentralized, low-price competition to high-end, high-value-added, and high-concentration development.
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