The calcium carbide process polyvinyl chloride enterprises face difficulties
June 25, 2018
“In the earlier period, due to the earthquake destroying the calcium carbide enterprises in Wenchuan and surrounding areas, the supply of calcium carbide (PVC), the raw material for the company’s PVC production, was interrupted and had to be purchased from outside the province. The road traffic was blocked, making it difficult to guarantee the supply of calcium carbide. From mid-May to the end of July, our PVC plant can only maintain a 50% load production, and recently, as some calcium carbide enterprises in the province have resumed production, the transportation conditions have improved, and the company's purchasing department has actively transferred from inside and outside the province. Basically meet the production needs of enterprises, but affected by the decline in international oil prices, domestic centralized production of new PVC devices, downstream demand and other factors, PVC ex-factory price has dropped from the previous 8,600 yuan / ton to 7,800 yuan / ton, and shipping Extremely unsmooth, companies are forced to maintain a 70% load operation.” In early September, the responsible person of Sichuan Jinlu Resin Co., Ltd. admitted in an interview that the profit margin of PVC enterprises is shrinking, and the vast majority of PVC enterprises are currently The days are not so good.
The person in charge of Xi'an Xihua Thermal Power Chemical Co., Ltd. stated that compared with the Jinlu Group, the benefits of Western Chemicals in recent years are good, but this year will not work. The company has its own calcium carbide production facilities, raw material supply is not affected by the earthquake, electricity prices are also cheaper than the eastern and southwestern provinces, coupled with previously enjoyed a preferential price policy of about 0.02 yuan / kWh, making its PVC cost than the eastern and southwestern Enterprises should be low 150 ~ 400 yuan / ton. "But starting this year, the increase in transportation costs caused by the increase in refined oil prices from June 20 and the increase in electricity costs caused by the increase in electricity prices by 0.0219 yuan/kWh from July 1 will increase the price of crude salt and blue carbon by the end of last year. The shortage of 300 yuan / ton and 1100 yuan / ton rose to now 430 yuan / ton and 1600 yuan / ton, so that the cost of PVC products increased by 400 yuan / ton. Due to the shrinking downstream demand, the product ex-factory price is only 7500 yuan / ton, The gross profit is also 100 yuan/ton, and recently received notice that the preferential price of 0.02 yuan/kWh previously enjoyed by the company has been canceled, and this alone will cause Western Chemical to increase profits by more than 20 million yuan each year. It is said that Yulin will close another 4 million tons of small coke plant, which will lead to a further increase in the price of blue carbon, and the country’s increasing efforts to rectify high energy-consuming industries such as calcium carbide, will support the long-term high price of calcium carbide and increase the price. The burden of PVC companies.” Xu Jinfeng, head of the Party and Group Work Department of Western Chemicals, expressed concern about the prospects of the company.
Xu Jinfeng’s concern is necessary. It is understood that at present, there are more than 100 PVC production enterprises in China, of which, the calcium carbide process PVC companies have accounted for 92% of the total number of enterprises, and the output accounts for 75% of the total PVC production. Since the beginning of this year, the price of calcium carbide has been rapidly increased from 2,700 yuan/ton at the beginning of the year to 3,500 yuan/ton at present, and even up to 3,800 yuan/ton in individual regions. Zhu, manager of calcium carbide production company in Hubei Xianning Hengyu Material Industry and Trade Co., Ltd., said that due to the tight price of blue carbon, as well as local power supply shortages, the company has stopped production. At the same time, all the calcium carbide companies in the region have encountered unprecedented difficulties and are in a half-jard state. "The blue carbon companies are facing the problems of raw material shortage and will directly affect the production of calcium carbide enterprises, and eventually the PVC companies." said Wang Jiansheng, general manager of Shaanxi Jintai Magnesium Chemical Co., Ltd.
The dramatic increase in the price of calcium carbide, together with the increase in freight charges for electricity, electricity, and environmental pollution, and the rise in the price of raw salt, have caused the production costs of PVC companies to increase substantially. It is understood that, according to a ton of PVC consumption of 1.47 tons of calcium carbide, 1.55 tons of raw salt calculation, the production cost of PVC has reached 7600 ~ 8100 yuan / ton, plus management costs, its full cost has reached 8000 (northern region) ~ 8500 yuan / ton (Southwest Region). At present, the ex-factory price of PVC in the northern region is only 7,500 yuan/ton, and that in the southwest and eastern regions is only 7,800 to 8,200 yuan/ton. Under such circumstances, even northern PVC companies that have the advantages of energy and resources such as electricity, coal, and raw salt, and are equipped with calcium carbide devices, can only operate at low profit, and most other companies have already suffered losses.
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