H share Tianjin Bohai Chemical Industry (Group) said yesterday its operating environment had deteriorated further in the first quarter, with product prices continuing to fall compared with the second half of last year.
Company secretary Yin Guanhui said average prices for its major products - PVC, soda ash and caustic soda - had fallen 5 per cent in the first quarter.
Ms Yin did not reveal how prices fared in the second half of last year, only to say caustic soda fell 15.59 per cent in the full year and soda ash dropped 0.17 per cent.
PVC bucked the trend, rising 5.89 per cent in the year.
Ms Yin said the impact of falling product prices this year would be mitigated by lower raw material costs, a trimmed workforce and other cost-cutting controls.
She said the company reduced its payroll by about 14 per cent to 20,000 last year after sending home about 3,000 workers. A similar reduction would be conducted this year, she said.
Company chairman Dai Chengwen declined to go into details of the mainland chemical sector this year, except to say it would continue to be hurt by overcapacity.
