Research on the competitiveness and development strategy of china's modern coal chemical industry

Abstract

China's modern coal chemical industry has grown into a certain scale after over a decade of development, and remarkable progress has been made in key technologies. But as oil price collapsed since 2015, the economic benefit of the industry also slumped, with loud controversies in China over the necessity of modern coal chemical industry. The research believes that the modern coal chemical industry plays a positive role in the clean and sustainable exploitation of coal in China. It makes profit when oil price is no lower than $60/bbl, and outperforms petrochemical in terms of cost effectiveness when the price is between $60/bbl and 80$/bbl. Given the low oil price and challenges posed by environmental protection and water restraints, we suggest that the state announce a guideline quickly, with adjusted tax policies and an encouragement to technological innovation, so that the modern coal chemical industry in China can grow sound and stable.