In the first quarter of 2007, China accumulatively produced crude oil 46,041,000 tons, up 1.5% from the same period of 2006, and concentrated nitric acid (converted into 100%) 475,000 tons, growing by a year-on-year 14.4%. Production of organic chemical raw materials was fast growing; especially production of fine methanol, which grew by quite a large margin; but output of glacial acetic acid was less than that of the same period of 2006. The output of fine methanol was 2,356,000 tons, up 48.2% from the same period of 2006; the output of chemical pesticide raw materials (converted into 100%) accumulated to 353,000 tons, up 20.3%; and the output of synthetic resin and polymers accumulated to 7,233,000 tons, up 19.7%.

1. Fall Seen in International Crude Oil Price in 2007

2. Petrochemical Product Price Still High in Q2 under the Influence of International Petrochemical Product Price
2.1 Crude Oil Production and Processing to Maintain Stable Growth
2.2 Growth Rate of Inorganic Chemicals Slowing Down, Price Maintaining Relative Stability
2.3 Production of Organic Chemical Raw Materials Fast Growing, yet Still Absent of Overall Volume Increase and Price Rise
2.4 Structure of Pesticide Products Continuing Improvement
2.5 Fast Growth in Production of Synthetic Resin, Sharp Fall of TDI Price in April

3. Analysis of Fertilizer Production
3.1 Analysis of the Nitrogenous Fertilizer Industry
3.2 Analysis of the Phosphate Fertilizer Industry
3.3 Analysis of the Potassium Fertilizer Industry

4. Analysis of the Chemical New Material Industry
4.1 The BDO Industry
4.2 The Polyurethane Industry
4.3 The DMF Industry
4.4 The Organic Silicon Industry
4.5 The Spandex Industry

5. Industry Pressure Not Low in 2007
5.1 Pressure from Cost
5.2 Pressure from Exportation
5.3 Pressure from Nationwide Energy Saving and Discharge Reduction

6. Main listed Companies
6.1 Yantai Wanhua Polyurethanes Co., Ltd
6.2 Bluestar New Chemical Materials Co., Ltd
6.3 Qinghai Salt Lake Potash Co., Ltd