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Low operating rate and overcapacity of domestic chlor alkali industry

wallpapers News 2020-08-31

In recent years, the capacity of domestic chlor alkali industry's main products, caustic soda PVC, has increased rapidly, which has obviously exceeded the dem growth of downstream industries, showing an oversupply situation.

During the joint investigation by China Chlor Alkali Industry Association Industry Development Department of China Petrochemical Federation, it is found that the relatively low concentration of chlor alkali enterprises has not been fundamentally improved.

In 2012, there were 185 caustic soda production enterprises in China, the average scale of a single enterprise was 202000 tons / year, there were 94 PVC enterprises.

The average scale of a single enterprise was 249000 tons / year.

With the construction of large-scale projects in recent years, the number of chlor alkali enterprises with a scale of more than 300000 tons / year is gradually increasing.

But at the same time, the enterprises with 100000-300000 tons / year are still an important part of domestic caustic soda PVC production enterprises.

In addition, there are still many enterprises with a capacity of less than 100000 tons / year.

Data: the production capacity has been increasing by double digits for 12 consecutive years.

By the end of 2012, the domestic caustic soda production capacity has reached 37.

36 million tons / year, the output has reached 26.

99 million tons.

From 2000 to 2012, the annual average growth rate of China's caustic soda production capacity has reached 13.

7%, the annual average growth rate of output is about 12.4%. The annual average growth rate of domestic consumption of caustic soda was 2.

43 million tons, exceeding the domestic consumption of 11.

92 million tons.

In recent years, in order to meet the rapid development of the national economy, the capacity of the basic raw material industry has increased rapidly, the alumina industry in the downstream of caustic soda has exped significantly, which has formed a more obvious driving role for the caustic soda industry.

The dem of traditional users in papermaking printing dyeing industry increased steadily.

By the end of 2012, China's PVC production capacity increased from 23.

43 million tons to 13.

31 million tons per year.

In terms of dem, the apparent consumption of PVC in China reached 13.

74 million tons in 2012, with an average annual growth rate of 11.2%. Driven by the rapid development of the real estate industry the construction of urban infrastructure, PVC hard products are the main downstream of PVC consumption in China, among which profile products door window products account for the largest proportion of consumption, followed by pipe pipe fittings.

Statistics show that in 2012, the amount of PVC used in profiles, doors windows, pipes fittings accounted for 54.

5% of the total consumption of PVC downstream in China.

Surplus situation: the average operating rate is 72.

2% 56.

3%, which is an important lever for enterprises to timely control the market price supply, is sensitive to the changes of market supply dem.

At the end of 2012, the average operating rate of caustic soda PVC industry was 72.

2% 56.3%. Generally speaking, in the international market competition, the capacity utilization rate is more than 80% ~ 85%.

According to the current average operating level of caustic soda PVC industry, the domestic chlor alkali industry has appeared overcapacity.

The supply is growing too fast the contradiction between supply dem is prominent.

In recent years, with the rapid development of economy the promotion of project investment in various regions, the newly exped caustic soda PVC projects have increased rapidly the production capacity has increased significantly.

At the same time, the consumption of downstream industries has maintained a relatively stable growth momentum, but the growth rate obviously lags behind the growth of production capacity, the excess capacity caused by the prominent contradiction between supply dem has intensified.

Especially since 2003, the cumulative increment of domestic caustic soda PVC apparent consumption is less than half of the total capacity growth.

This reflects that the capacity growth of domestic caustic soda PVC is not mainly driven by the dem of downstream industries.

Regional overcapacity unbalanced regional distribution.

At present, the central western regions have become the main supply areas of caustic soda PVC, while the main consumption areas of chlor alkali products are mainly concentrated in the eastern southern regions.

The central region can basically realize the local digestion of caustic soda PVC products, while the product supply capacity of the western region is far higher than the dem gap existing in the eastern region.

Even considering the annual net export scale of caustic soda of about 2 million tons, there is still a considerable amount of excess capacity idle in China.

The product structure is relatively single, homogenization fierce competition.

The structural overcapacity of the industry is also reflected in the intensified competition in the low-end market caused by the single product variety.

Taking PVC as an example, in recent years, the varieties of PVC produced by the new expansion projects are mainly SG-3, SG-5 SG-7, with single market products fierce competition.

In recent years, some domestic enterprises have developed a number of new PVC resin varieties through independent research development, but compared with foreign countries, there is still a certain gap in product output, quality application field.

The development of special resin, high-end special resin products is insufficient, the application field needs to be further exped.

Excess degree: it is still difficult to get out of the overcapacity predicament in 2015.

According to the historical development of chlor alkali industry, when the average operating rate of caustic soda industry reaches 85% the average operating rate of PVC is 80%, the market is in a relatively normal state of competition, the products have certain profitability.

It is generally believed that there is no overcapacity in this situation.

Even under such conditions, according to the domestic supply dem of caustic soda PVC in 2012, the excess capacity of caustic soda plant in China exceeds 5 million tons / year, the excess rate reaches 17.7%. The excess capacity of PVC is nearly 7 million tons / year, the excess rate is 42.1%. According to the current situation of overcapacity in chlor alkali industry the average annual consumption growth level in 2009-2012, even if the domestic caustic soda PVC production capacity will not increase in the future, it will still take 2.

1 years 5.

2 years to digest the accumulated excess capacity of caustic soda PVC respectively.

According to the current development trend of domestic chlor alkali industry, it is estimated that by 2015, China's caustic soda production capacity will reach 42 million tons, the dem (including domestic consumption net export) will be about 32.

25 million tons, the production capacity of PVC will reach 27.

1 million tons, the domestic downstream dem will be about 16.

35 million tons.

Although the capacity growth has slowed down at the present stage, the domestic chlor alkali industry will still be difficult to get out of the predicament of overcapacity if it is not controlled due to the large capacity base of caustic soda PVC at present.

Causes of surplus: local governments have made great contributions.

According to incomplete statistics of China Chlor Alkali Industry Association, more than 150 enterprises have newly exped ion-exchange membrane caustic soda projects from 2005 to 2012, while supporting the construction of PVC related chlorine consuming products projects.

From the current development situation, China's chlor alkali industry capacity growth, overcapacity contradiction is increasingly prominent, mainly due to the joint efforts of the government, enterprises marketIt is caused by using.

First, local governments enterprises are blind in launching chlor alkali projects.

As far as the local government is concerned, it is important to seek for long-term economic environmental benefits for the local government to promote the development of local chemical industry.

For enterprises, any advantage in resources, energy, capital, product market, industrial chain extension management experience can be the reason for new expansion of chlor alkali projects.

Some enterprises even start large-scale chlor alkali projects without any competitive advantages.

The second is to exp the scale control resources.

At present, although the capacity scale of chlor alkali industry in China is large, there are too many enterprises the market competition is still chaotic.

The expansion of scale for the purpose of competing for market share leads to new expansion projects competing.

In addition, the new expansion of large-scale chlor alkali projects, especially the supporting projects of calcium carbide process PVC, can not only reduce the cost, but also transform coal resources on the spot, which can objectively realize the use control of local resources energy by enterprises.

Third, the technical barriers to enter the chlor alkali industry are getting lower lower.

Chlor alkali industry is a basic chemical raw material industry.

China's chlor alkali industry has a history of more than 80 years.

It is relatively mature in process design, equipment technology, personnel training so on.

It can be said that even if enterprises without any chemical production experience build chlor alkali projects, there is almost no technical threshold.

Fourth, the government departments are not in place to supervise the implementation of access conditions.

The admittance conditions for chlor alkali (caustic soda PVC) industry has been implemented since December 1, 2007.

However, the relevant national departments have not supervised the implementation of the policy in place, some chlor alkali projects that do not meet the admittance conditions are allowed to start.

As a result, the phenomenon of repeated construction of chlor alkali projects in some regions is serious, the utilization efficiency of industry resources is reduced.

(source: chemical hotline).


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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.
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