my country’s white oil industry structure is unbalanced and high-end white oil supply capacity needs to be improved

White oil refers to a special mineral oil product obtained after ultra-deep refining of petroleum to remove aromatic hydrocarbons, sulfur, nitrogen and other impurities. White oil is a mixture of liquid hydrocarbons, appearing as a colorless, transparent oily liquid with no odor. As an oil-soluble raw material, white oil can be used to prepare bath oil, lipstick, release agent, lubricating oil, etc., and is widely used in cosmetics, industry, medicine, textile, plastics, chemical fiber, rubber and other fields.

According to different application fields, white oil can be divided into pharmaceutical grade, cosmetic grade, industrial grade, etc. At present, industrial grade white oil is the mainstream product in the market, accounting for about 80% of the consumption. In recent years, with the rise of the beauty economy and the development of the medical industry, the market demand for cosmetic-grade and pharmaceutical-grade white oil has grown rapidly, and the proportion of consumption continues to increase. Overall, my country’s white oil market shows a pattern of rapid development of industrial-grade white oil and cosmetic-grade/pharmaceutical-grade white oil.

According to the “China White Oil Industry Market Demand and Investment Planning Analysis Report 2022-2026” released by the Industrial Research Center, in recent years , with the development of my country’s economy, white oil consumption is increasing day by day. In 2021, my country’s apparent consumption of white oil will reach more than 2 million tons. Thanks to the release of demand and technological progress, the output of my country’s white oil industry is also showing a growth trend, reaching about 1.85 million tons in 2021, with an average annual compound growth rate of about 9.4% from 2017 to 2021.

my country is a major producer of white oil, with many related domestic production companies, including Shanghai Gaoqiao, Jingmen Petrochemical, Tianjin Kaiwei Wynn, Maoming Petrochemical, Hebei Feitian Petrochemical, etc. From the perspective of production capacity distribution, my country’s white oil production capacity is mainly concentrated in East China, North China, South China and other regions, with the total production capacity of the three major regions accounting for about 75.0%.

The white oil production process is divided into high-pressure hydrorefining method, sulfur trioxide refining method and fuming sulfuric acid refining method, among which high-pressure hydrorefining method is widely used in overseas markets. Due to limitations in production technology, the structure of my country’s white oil industry is unbalanced, with overcapacity in industrial-grade white oil and high-end production capacity still dependent on imports. The structure of my country’s white oil industry still needs to be optimized in the future.

In the context of high-quality development of the manufacturing industry, the growth rate of industrial-grade white oil demand has slowed down. In recent years, in order to expand the market and ensure survival, more and more companies have shifted their production focus to the high-end white oil field. This has not only eased the domestic The problem of insufficient supply of high-end white oil has also promoted the development of the white oil industry in the direction of high quality, high-end and diversification.

Industry analysts said that white oil is widely used in industry, cosmetics, medicine, textiles, food and other fields. my country is the largest producer of white oil. It is a big country, but the structure of my country’s white oil industry is unbalanced, with excess industrial-grade white oil production capacity and insufficient supply of high-end production capacity. In order to ensure the long-term sustainable development of the industry, white oil companies should improve the level of production technology, expand the supply capacity of pharmaceutical-grade and cosmetic-grade white oil, and then promote the transformation and upgrading of the white oil industry.