"Compared with the same period of last year, this year's operating performance of the entire plant has significantly increased, which is mainly due to profitability of the PVC plant." Liu Aidong, the propaganda department director of Qilu Petrochemical Plastic Factory, recently told reporters.
Also delighted is the head of Shanghai Chlor-Alkali Chemical Co., Ltd. In the first half of this year, the company realized a net profit of 20.258 million yuan, a significant increase of 176.23% year-on-year. Among them, PVC achieved a sales income of 960,587,500 yuan and a profit of 11,142,600 yuan, and its contribution to the company's net profit was as high as 55.49%. In the same period of last year, the PVC plant was still a large loss maker.
The above two companies are the leading companies in the domestic ethylene PVC industry. In addition, Tianjin Union Chemicals, Tianjin Daxie Chemical Co., Ltd., and Formosa Plastics (Ningbo) Co., Ltd. and many other vinyl PVC manufacturing companies have improved their operating performance from January to August this year and realized ethylene-based PVC since 2005. The first profit since the third quarter.
Recall that last year, due to the low price of PVC by calcium carbide method, ethylene-based PVC suffered a full industry loss. "This year's profit is mainly due to the country's macro-control, and the cost of the company's calcium carbide technology continues to increase," said Liu Aidong.
According to reports, in order to protect the environment and improve the utilization rate of resources, the state has continuously issued policies since 2005 to regulate and limit the development of industries with high energy consumption and high pollution, and calcium carbide, chlor-alkali enterprises have become one of the main targets of state policy regulation. The implementation of a series of measures such as raising industry barriers to entry, forcing the elimination of backward production capacity, realizing differential electricity prices, restricting bank loans, requiring the addition of environmental protection and pollution control facilities, and so on have led to a significant increase in the production costs of calcium carbide enterprises and the rise in the price of calcium carbide. Taking August as an example, the ex-factory price of calcium carbide in various regions rose by more than 700 yuan per ton year-on-year, which was generally more than 2,700 yuan per ton. According to the calculation of 1.4 to 1.5 tons of calcium carbide to produce 1 ton of PVC, the cost of calcium carbide method PVC enterprises only increased by 1,000 yuan per ton. With the increase in electricity prices and freight rates, the cost of calcium carbide process PVC production companies has increased substantially and the price of products has risen. The rise in the price of calcium carbide method PVC, but also boosted the performance of better PVC PVC prices rose, for the ethylene law PVC business opened up the profitability.
As a matter of fact, at present, not only are illegal calcium carbide production enterprises banned in various regions, but also compulsory forced demolition of electric furnace installations with an annual production capacity of less than 1.25 million tons that have obtained production licenses, and all of the calcium carbide production companies in the Yangtze River and Yellow River basins have been completely banned. . These measures have significantly curbed the growth of calcium carbide production. According to statistics, the growth rate of calcium carbide production in Inner Mongolia, which accounted for one-third of the country's total output in July, has dropped from 26.7% in June to 18.5%, a drop of 8.2%. The situation of other calcium carbide production areas in the country is also roughly the same. Since the newly-increased calcium carbide method PVC plant was put into operation this year, the demand for calcium carbide increased sharply, and the prices of white ash and blue carbon used in the production of calcium carbide also rose by a large margin compared with last year, which led to a tight supply of domestic calcium carbide. The price continues to rise.
The increase in the price of calcium carbide process PVC has further narrowed the price gap between ethylene and PVC, and has also enabled ethylene process PVC to remain profitable. However, although the price difference between the two is relatively small, due to the low profits of downstream product companies in recent years, the price competitiveness of calcium carbide process PVC is still very strong, and some large companies still maintain profitability after undergoing environmental protection tests. .
“The prospects of calcium carbide process PVC are still vast. The key is to see how companies do it.†said a staff member of Xinjiang Tianye News. The company is a large calcium carbide PVC manufacturer in China and currently has 300,000 tons of annual production capacity. This year, the company also faced the problem of raw material price increase, but the company had its own power plant, and its electricity price was nearly half that of outsourcing, thus ensuring that the company's PVC gross margin was higher than its national counterparts. In addition, through technical breakthroughs, the company successfully developed calcium carbide slag cement production technology and waste gas, waste water recycling treatment and recycling technology, to achieve the "three wastes" of recycling. These measures have not only reduced the emission of pollutants, but also enabled the company to obtain circulatory economic benefits of several tens of millions of yuan per year. As the country's pollution control efforts increase and the sewage charges increase, this part of the company's revenue will increase.
With the implementation of the national macro-control policies, the increase in the management of high-energy-consuming and highly-polluting industries, and the increase in environmental protection requirements, compared with the ethylene process, the cost of the calcium carbide process PVC companies is drastically weakening, although they still have certain advantages. . Experts believe that ethylene PVC companies should seize this rare opportunity to breathe, and strive to develop high-end products, special products, as far as possible to avoid competition with calcium carbide process PVC in the low-end areas.
Also delighted is the head of Shanghai Chlor-Alkali Chemical Co., Ltd. In the first half of this year, the company realized a net profit of 20.258 million yuan, a significant increase of 176.23% year-on-year. Among them, PVC achieved a sales income of 960,587,500 yuan and a profit of 11,142,600 yuan, and its contribution to the company's net profit was as high as 55.49%. In the same period of last year, the PVC plant was still a large loss maker.
The above two companies are the leading companies in the domestic ethylene PVC industry. In addition, Tianjin Union Chemicals, Tianjin Daxie Chemical Co., Ltd., and Formosa Plastics (Ningbo) Co., Ltd. and many other vinyl PVC manufacturing companies have improved their operating performance from January to August this year and realized ethylene-based PVC since 2005. The first profit since the third quarter.
Recall that last year, due to the low price of PVC by calcium carbide method, ethylene-based PVC suffered a full industry loss. "This year's profit is mainly due to the country's macro-control, and the cost of the company's calcium carbide technology continues to increase," said Liu Aidong.
According to reports, in order to protect the environment and improve the utilization rate of resources, the state has continuously issued policies since 2005 to regulate and limit the development of industries with high energy consumption and high pollution, and calcium carbide, chlor-alkali enterprises have become one of the main targets of state policy regulation. The implementation of a series of measures such as raising industry barriers to entry, forcing the elimination of backward production capacity, realizing differential electricity prices, restricting bank loans, requiring the addition of environmental protection and pollution control facilities, and so on have led to a significant increase in the production costs of calcium carbide enterprises and the rise in the price of calcium carbide. Taking August as an example, the ex-factory price of calcium carbide in various regions rose by more than 700 yuan per ton year-on-year, which was generally more than 2,700 yuan per ton. According to the calculation of 1.4 to 1.5 tons of calcium carbide to produce 1 ton of PVC, the cost of calcium carbide method PVC enterprises only increased by 1,000 yuan per ton. With the increase in electricity prices and freight rates, the cost of calcium carbide process PVC production companies has increased substantially and the price of products has risen. The rise in the price of calcium carbide method PVC, but also boosted the performance of better PVC PVC prices rose, for the ethylene law PVC business opened up the profitability.
As a matter of fact, at present, not only are illegal calcium carbide production enterprises banned in various regions, but also compulsory forced demolition of electric furnace installations with an annual production capacity of less than 1.25 million tons that have obtained production licenses, and all of the calcium carbide production companies in the Yangtze River and Yellow River basins have been completely banned. . These measures have significantly curbed the growth of calcium carbide production. According to statistics, the growth rate of calcium carbide production in Inner Mongolia, which accounted for one-third of the country's total output in July, has dropped from 26.7% in June to 18.5%, a drop of 8.2%. The situation of other calcium carbide production areas in the country is also roughly the same. Since the newly-increased calcium carbide method PVC plant was put into operation this year, the demand for calcium carbide increased sharply, and the prices of white ash and blue carbon used in the production of calcium carbide also rose by a large margin compared with last year, which led to a tight supply of domestic calcium carbide. The price continues to rise.
The increase in the price of calcium carbide process PVC has further narrowed the price gap between ethylene and PVC, and has also enabled ethylene process PVC to remain profitable. However, although the price difference between the two is relatively small, due to the low profits of downstream product companies in recent years, the price competitiveness of calcium carbide process PVC is still very strong, and some large companies still maintain profitability after undergoing environmental protection tests. .
“The prospects of calcium carbide process PVC are still vast. The key is to see how companies do it.†said a staff member of Xinjiang Tianye News. The company is a large calcium carbide PVC manufacturer in China and currently has 300,000 tons of annual production capacity. This year, the company also faced the problem of raw material price increase, but the company had its own power plant, and its electricity price was nearly half that of outsourcing, thus ensuring that the company's PVC gross margin was higher than its national counterparts. In addition, through technical breakthroughs, the company successfully developed calcium carbide slag cement production technology and waste gas, waste water recycling treatment and recycling technology, to achieve the "three wastes" of recycling. These measures have not only reduced the emission of pollutants, but also enabled the company to obtain circulatory economic benefits of several tens of millions of yuan per year. As the country's pollution control efforts increase and the sewage charges increase, this part of the company's revenue will increase.
With the implementation of the national macro-control policies, the increase in the management of high-energy-consuming and highly-polluting industries, and the increase in environmental protection requirements, compared with the ethylene process, the cost of the calcium carbide process PVC companies is drastically weakening, although they still have certain advantages. . Experts believe that ethylene PVC companies should seize this rare opportunity to breathe, and strive to develop high-end products, special products, as far as possible to avoid competition with calcium carbide process PVC in the low-end areas.
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