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When will soda ash industry lose money?

wallpapers News 2020-09-07

soda ash industry -- how to deal with it after one year's loss?

if you want to ask which chemical sub industries are having a hard time this year, soda ash should be counted as one. At the 2013 general meeting of China Soda Ash Industry Association held at the end of March, many enterprise leaders complained incessantly, the topics such as surplus, loss production restriction became the focus of heated discussion among the delegates, which caused collective reflection of the industry.

this year is very bad,

"on the whole, it is more difficult than ever." This is a sentence that the reporter hears most when interviewing soda ash enterprise. The theme report of Wang Xiling, President of

of China Soda Ash Industry Association, shows that although the economic downturn in 2012, the growth rate of main downstream products of soda ash is significantly reduced, some ammonia soda enterprises reduce production, the domestic soda ash output is still increasing substantially, the market is obviously producing more than selling. As a result, the price of soda ash continued to fall, resulting in huge losses in the whole industry. According to the statistics, in 2012, the domestic output of soda ash reached 24.01 million tons, a year-on-year increase of 7.4%. Among the main production enterprises, 12 ammonia soda enterprises had 83.3% losses, with a loss of 2 billion yuan; 31 soda ash enterprises with combined soda process had a loss of 54.8%, with a loss of nearly 1.2 billion yuan. In the first quarter of this year, losses continued. As the price of ammonium chloride falls, sales volume decreases inventory increases, some of the combined soda enterprises which made profits last year also have losses; the losses of ammonia alkali enterprises are increasing. Wang Xiling's statement of

has been confirmed by some enterprise leaders, the large inventory low price make them feel the most. Li Fenghua, deputy general manager of

Dahua Group Co., Ltd., said that due to the unstable operation of the equipment, Dahua Group's output of soda ash last year was only 400000 tons, with the capacity of about 70%. Both foreign trade domestic prices are not high. Recently, they feel that the market price is still falling, while the market competition is increasingly fierce.

"now we want to ship can not be out, inventory has been very high. Last year, the economic efficiency of enterprises was passable, but now it is in the most difficult period. " Sichuan Hebang Co., Ltd. President Zeng Xiaoping said. According to his analysis, on the one h, the social population is too large; on the other h, the downstream dem has shrunk compared with before. In particular, since the second half of last year, the price of soda ash in the Southwest has plummeted. At present, the ex factory price of light alkali is very low, only 1150 yuan / ton, that of heavy alkali is only 1250 yuan / ton.

"this year is much more difficult than last year. I feel that there is no dawn. I even joked with some of my colleagues that it was too difficult to sell soda ash, so let's change our business as soon as possible. At present, the total inventory of domestic soda ash enterprises has reached more than 1 million tons. In the future, whether the enterprises stop production or reduce production, this amount will go to the market. " Zeng Xiaoping was helpless. A person in charge of

Zhongyan Debang Chemical Co., Ltd. said that the company's profit in the first half of last year was good, but began to decline in the second half of last year. In view of this, last year, they cooperated with China National Salt Corporation to set up China National Salt Debang new project company, built a synthetic ammonia project in Lianyungang new area, including urea, compound fertilizer other products. The soda ash production is not big, because the industry is no longer "fun".

this year, the market change of by-product ammonium chloride of soda ash has a great influence on enterprises. The soda ash produced by

of Huai'an huaerrun Chemical Co., Ltd. is mainly used to support their main glass industry. Zhu Changhong, deputy general manager of the company, said that the market situation this year is more severe than that of last year. The main reason is that the pressure of ammonium chloride is very high there is an unprecedented stock. As production capacity continues to increase, he is at a loss about the future. Tang Shunli, general manager of

Henan Jinshan Chemical Co., Ltd., said that the enterprises had a good time from January to February this year, the report of March had not been published, but the situation was not optimistic. Last year, Lianhe made profits because the price of ammonium chloride was slightly higher, but this year's situation is different. In March April of previous years, the price of ammonium chloride was once a day. However, this year's price of ammonium chloride did not rise but fell, leading to difficulties for the United soda enterprises. "Colleagues have been talking about when this crisis will be over these two days, but I think it is just beginning." Tang Shunli said.

Li Qingju, deputy director of Lianyungang alkali plant of Sinopec Nanhua company, said: "our output last year was 1.027 million tons, there was a serious loss. In 2013, our planned output is 1 million tons, the group company requires us to limit the loss of 120 million yuan this year. But judging from the first quarter, it is very difficult to achieve this goal. " The rise in railway freight rates has made some soda ash enterprises in the West unexpected. After

entered 2013, the situation of China Salt Qinghai Kunlun Alkali Industry Co., Ltd. was not optimistic. Their current stock is about 180000 tons, but the number is still rising. Yang Shuhong, deputy general manager of the company, said that when the project was established, the company put the enterprise in Qinghai, but the market pressure was great after the project was completed. Although they have many salt mines limestone mines, they also have obvious disadvantages in terms of market competition, that is, the transportation costs are particularly high. After this year, the freight transport cost of Qinghai Province has been raised by 0.015 tons per ton, which has become a bottleneck for the development of Qinghai's freight transport industry.

blindly invest in

. According to Wang Xiling's analysis, under the overall economic downturn, the pressure on soda ash industry is far greater than that of other industries. From the beginning of last year to the end of the year, the two lines have been keeping a large distance in the trend chart of soda ash production sales. Some new factories large-scale soda plants can not reduce their stock all the time. Under the big pattern of production exceeding sales, the price reduction of products is inevitable. "At the general meeting a year ago, we called on the whole industry to limit production by 20%. But what about the results? The output did not decrease, but increased to 2.01 million tons per month from October to November last year. This kind of disregard for the overall situation, ignoring the economic law, so that the whole industry has been warned punished by the market. " Wang Xiling said. Why can't inventory be reduced? It is generally believed in the industry that interest driven has led to blind investment in soda ash industry.


vice president of Jiangsu Jingshen Salt Chemical Co., LtdManager Ding Chaoran believes that soda ash is the most basic chemical raw material, which determines that it can not be a profiteering industry. At the same time, the technical threshold of soda ash industry is not very high. As long as you have money, you can come in. This determines that the enterprise should operate in a normal reasonable profit range, it is good to maintain the profit margin of 15%. A few years ago, soda ash industry made huge profits, there are unreasonable factors in it. It is also because of the huge profits in previous years that stimulated the desire for investment. In addition, some managers make irrational decisions, they always feel that they are highly competitive. They have the advantages of resources funds, can push others down. Therefore, the current situation of surplus loss in the industry is caused. Zhou Xuequan, deputy general manager of Tangshan Sanyou Chemical Co., Ltd., also said that in recent years, driven by interests, some upstream downstream enterprises have entered the soda ash industry. From the downstream, many glass enterprises, including Zhejiang Glass Group Shong Jinjing Technology Co., Ltd., have set foot in the soda ash industry. They have launched projects with annual production capacity of hundreds of thouss of tons or even up to one million tons, have basically reached the production capacity. Taiwan Glass Industry Group Corporation will build a soda ash plant with an annual capacity of 1 million tons this year, which aggravates the excess of this industry. He also believes that the unreasonable layout is also an important reason. "At present, there are several regions in China where the crude salt resources are developed, such as Jiangsu Qinghai, many soda factories have been set up at once, but there are not so many local customers. This is tantamount to the predatory exploitation of resources, but the effect is not good. " Zhou Xuequan said. Some enterprise leaders of

also said that the local government's pursuit of political achievements is an important reason to stimulate new construction expansion projects. Shi Chunlei, vice president of sales of

Qinghai Soda Industry Co., Ltd., said: "I think it is necessary to limit production. We have been trying to report the plan to the provincial government, but it has not been successful."

Zhu Changhong also stressed that the state hopes to limit the production of soda ash industry, enterprises also have this plan, but the local government hopes that their soda ash projects will continue to increase investment next year, with a large number. Zhou Xuequan believes that local governments national associations have different considerations. For example, they should consider the issue of GDP the placement of workers. Therefore, there will be some departmentalism. "I think the current situation of the industry is very normal. It is both reasonable expected. It is the result of the" joint efforts "of the whole industry. It is in line with the law of the market an inevitable product of the extensive economic development in China. With the continuous progress of society, after the end of China's urbanization process, the dem for soda ash will be greatly reduced, the capacity will be more excess. When an industry rises, there is a time of decline. In 2011, the whole industry made huge profits, now it is normal to be in a downturn. There's a movie line that goes like this: sooner or later, you have to pay it back. So many enterprises have been built by us. The bitter fruit made by oneself must be swallowed by oneself. " The survival of the fittest is the key to

. In the face of the difficult situation of soda ash industry, what effective measures should be taken to change this situation? Wang Xiling of

believes that for more than 60% of soda ash enterprises, the difficult situation of loss has lasted for more than a year. Under the circumstances that market production exceeds sales, price competition is fierce, enterprise losses are serious, limiting production is a wise choice. However, production restriction is only an expedient measure. Enterprises should adopt new technology, new technology new equipment as means to reduce the consumption cost of energy raw materials to promote their sustainable development.

in this regard, many soda ash enterprises said that they should strictly control the operating rate from their own point of view, so as to respond to the call for production restriction. Some enterprises have put forward their own suggestions. Fu Xiquan, general manager of Shong Haihua Co., Ltd., said that they had taken the initiative to reduce the operating rate from 74% in 2012 to 70% now, the current monthly output is no more than 175000 tons. This is mainly due to two considerations: one is that under the current market environment, it is unnecessary to lose more if there is more output; the other is to fulfill the promise, there is the possibility of further production restriction in the future.

Yang Shuhong told reporters that the enterprise intends to respond to the call of the industry association to limit production, do a good job in several aspects: first, the enterprise has carried out capacity adjustment, although it can reach the production capacity, but it has not started at full capacity; second, as a new enterprise, they actively explore technical transformation from the perspective of production cost, strive to occupy a place in the market competition through high-quality products; Third, enterprises are planning to build a special container line, trying to reduce transportation costs through container cost advantages; fourth, actively seeking higher-level cooperation with mainl counterparts, whether in technology or market, to carry out all-round cooperation.

Ding Chaoran said that if the industry wants to develop healthily, limiting production ensuring price is only one aspect. Enterprises with high production costs high energy consumption should be eliminated let them quit early. This is good for enterprises, industries the country. If they are allowed to keep losing money endlessly until they are insolvent unable to dispose of them, it will be the state that will lose. Therefore, he believes that for enterprises with huge losses, the relevant departments should help them exit. The state can issue policies to give some support funds to the enterprises that should withdraw but have difficulties; the peer enterprises can also provide some help to them to jointly maintain a good market environment.

Ding Chaoran also suggested that the state should establish a comprehensive evaluation mechanism. First of all, it is necessary to conduct a comprehensive evaluation of the industry, including what kind of manufacturing costs are normal, what price of soda ash is reasonable, etc., so as to avoid blind investment caused by excessive profits. Secondly, it is necessary to evaluate which areas are suitable for the development of soda ash industry, which areas are not suitable for development, implement district management regional limited approval. Thirdly, it evaluates the current situation of enterprises. The government should advise the enterprises which are not likely to make profits in the future to quit; for enterprises with high technology, management, safety environmental protection, policies should be issued to encourage their development. Many enterprises of

believe that the upward transfer of approval authority is the key to control new production capacity solve difficulties.

Zhou Xuequan said that every project that makes money now will swarm into it. The decentralization of examination approval power has encouraged blind investment. If the government will make soda ash projectIf the Ministry of industry information technology the Ministry of environmental protection jointly examine approve, the soda ash industry association can also participate in giving opinions, the situation may be improved. However, the general manager of Shunquan said that the measures of controlling the excess production capacity of the company were only temporary. From the perspective of internal upgrading, the industry should unite with upstream, midstream downstream enterprises service enterprises to establish alliances, jointly improve the internal structure, improve the competitiveness, reduce the operating costs, so as to achieve product upgrading survival of the fittest. "

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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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