A new round of reshuffle in the calcium carbide industry
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The main features of the recent market are:
Electricity prices continued to increase in some regions. Some time ago, electricity prices of calcium carbide enterprises in Shaanxi Shenmu and Inner Mongolia were raised to varying degrees. Electricity prices in Inner Mongolia were adjusted to 0.35 yuan/kWh. Electricity prices of some calcium carbide enterprises in Shanxi Province were 0.42 yuan/kWh. Electricity prices were raised in one week in Shenmu, Shaanxi Province. 0.04 yuan/kwh. As the calcium carbide industry with large electricity consumption, the cost of electricity accounts for a large part of the cost of calcium carbide, and the production of 1 ton of calcium carbide consumes about 3,450 kwh. Therefore, the increase in electricity prices will undoubtedly have a greater negative impact on the calcium carbide industry. It is not surprising that the price of calcium carbide has been raised slightly.
The downstream product market began to improve. The demand for calcium carbide in the PVC industry accounts for more than 75% of calcium carbide consumption. The price of PVC has been steadily increasing recently. The mainstream price of calcium carbide method PVC in southern China is 6900-7000 yuan/ton, and the high-end quotation is 7,000 yuan/ton or more. The PVC market in the downstream has improved and the profits of the industry have increased. Therefore, with the increase in cost of raw materials and calcium carbide, it is acceptable for prices to rise appropriately.
Supply and demand have changed. In the first two months of this year, the domestic production of calcium carbide was 2.11 million tons, and the average monthly output was 1.055 million tons, an increase of 7% year-on-year, and the growth rate slowed down. In the previous period, the calcium carbide market was in a downturn and the operating rate of enterprises was reduced. After the increase in electricity prices, some small calcium carbide companies had to stop production, which played a catalytic role in the current calcium carbide market.
It can be seen that the current market of calcium carbide is reasonable. Energy conservation and consumption reduction have become the focus of this year's government's work. The country's relevant governance measures will continue to be introduced. Local measures for high energy consumption industries will also be introduced one after another. The calcium carbide industry will certainly bear the brunt. The increase in electricity prices is only one of the macro-control measures. Some small-scale enterprises have been unable to bear the cost pressure and some have stopped production. The calcium carbide industry is facing a new round of survival of the fittest. Is this the opportunity or challenge for the calcium carbide industry?
After the expansion of the calcium carbide industry, the production capacity surged and the output increased rapidly every year. Although the downstream calcium carbide process PVC industry expansion is also relatively rapid, digesting some of the increase in calcium carbide production capacity, but the calcium carbide market suffered due to the expansion of the market price is difficult to increase the pain. The price of electricity has been raised, and some small-scale calcium carbide companies have had to stop production. Therefore, the reduction in supply of calcium carbide and the change in supply and demand in the market have been positive for the calcium carbide market. This is undoubtedly an excellent opportunity.
As the major cost of calcium carbide constitutes an increase in electricity prices, the cost pressure on the calcium carbide industry is very obvious, which requires companies to better reduce costs in other areas, so it is another challenge. This challenge has enabled competitive enterprises to develop and complete the survival of the fittest in the market, making the calcium carbide industry healthy and healthy development.
The key to the opportunities and challenges of the calcium carbide industry lies in their respective competitiveness and advantages. After some industry reshuffle, it is not a bad thing for the calcium carbide industry. Finally, it is beneficial to the upstream and downstream industries and the entire industry chain.