#China #Beijing #Sinopec #BASF #ExxonMobil

Sinopec Claims the Top Position in the ICIS Top 100 Chemical Companies Ranking

In a notable shift in the global chemical industry landscape, China's Sinopec has secured its place as the world's largest chemical company according to the recently released ICIS Top 100 Chemical Companies rankings. This marks a significant change, with Sinopec ascending to the top, taking the title from Germany's BASF, which is now positioned in second place with an impressive revenue of $67.5 billion.

Rounding out the top five positions, we find ExxonMobil from the United States with chemical sales reaching $55.4 billion, followed by Dow, also from the US, at $43.0 billion. Closing the top tier is China’s PetroChina, recording sales of $42.2 billion. The ranking highlights the growing influence and competitive edge of Chinese chemical companies in a market that is otherwise experiencing profitability challenges especially in North America and Europe.

Despite facing an environment where most chemical producers worldwide are reporting declining profits—largely due to an oversupply in the market combined with sluggish demand—Chinese firms have demonstrated resilience. They have increasingly contributed to the rankings, with four of the top ten companies hailing from China, all showing growth in their sales.

According to Joseph Chang, the global editor of ICIS Chemical Business, the outlook for 2024 was challenging, and significant declines were witnessed in profitability metrics compared to the peaks of 2021. The scenario working against many producers includes an extensive overcapacity that has caused a ripple effect throughout the industry.

“The decline is expected to persist into 2025, as many companies are likely to face shrinking sales. The situation is prompting producers to either shut down operations or divest certain assets. In contrast, while some firms are restructuring in such a manner, others in China are continuing to bolster their capacities, which is anticipated to keep boosting their sales numbers,” Chang stated.

The ICIS Top 100 rankings are derived from an amalgamation of sales, operating profits, net income, total assets, capital expenditures, and research and development spending, all based on data from 2024. As these rankings are published annually, they serve as an essential indicator of the shifting dynamics within the global chemical industry.

The implications of Sinopec's ascent in the rankings extend beyond mere numbers. It reflects a broader trend where Chinese companies are establishing a firmer foothold on the global stage, bolstering their resources, and enhancing their production capabilities while others in the West struggle to maintain stability. This evolving competitive landscape underscores the need for US and European firms to adapt rapidly or risk further declines.

The full ICIS Top 100 Chemical Companies issue of ICIS Chemical Business is currently available for download, providing insights into the ongoing trends shaping this critical sector. Currency conversions to US dollars for the ranking rely on year-end 2024 exchange rates, ensuring accuracy in financial reporting.

About ICIS
Established as a leading authority in commodity market intelligence, ICIS helps businesses navigate and mitigate risks while also enhancing productivity and exploring new opportunities. By offering vital data and insights, ICIS enables organizations to make informed strategic decisions in energy, petrochemical, and fertilizer supply chains globally. Their presence in various countries, including key markets like the US, UK, and China, empowers businesses with market intelligence crucial for sustainable growth.

About RELX
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