PVC Expansion Of Calcium Carbide Method Must Be "More Leisurely".

After March, with the acceleration of the depreciation of the US dollar, the speed of international oil price rising is also accelerating.

In May 8th, the New York Mercantile Exchange delivered light crude oil futures in June, which reached $124.61 a barrel after electronic trading, setting the highest record since crude oil futures began trading in 1983.

High oil prices will drive up the price of basic energy and chemical raw materials.

Calcium carbide method (PVC) enterprises will enjoy the product price difference brought by high oil prices, providing market space for their production expansion.

However, industry experts have warned that PVC production enterprises need to have a clear understanding of expansion, and the expansion is not as optimistic as expected. The hidden danger caused by overcapacity is worth pondering.

The production technology of PVC in China is divided into ethylene method and carbide method. The capacity of calcium carbide method accounts for about 73% of the total capacity of PVC.

The quality of ethylene PVC is better, but it is affected by the price of crude oil.

The raw material of calcium carbide method PVC is low in price. Compared with ethylene method, it has a low cost of 750~1200 yuan per ton and has a strong cost advantage.

There is a view that China is a rich coal and poor oil country. With the global oil price rise, the calcium carbide method PVC provides the market space for production expansion.

It is understood that the Midwest coal and salt industry group, relying on its own resources and capital advantages, has made great progress towards the PVC industry.

Xinjiang Zhongtai chemical Limited by Share Ltd has decided to expand PVC to 420 thousand tons per year this year.

According to the overall planning and the demand for calcium carbide, the company plans to expand the annual output of 500 thousand tons of calcium carbide project in the subsidiary company of Zhongtai mining and metallurgy company, with a total investment of 939 million yuan.

The project is divided into two phases: first, the construction of an annual output of 200 thousand tons of calcium carbide plant.

In addition, the Henan LIAN Chemical Co., Ltd. has an annual expansion of 300 thousand tons of PVC resin, and the new PVC plant with annual output of 120 thousand tons PVC, Gansu North Santai Chemical Co., Ltd. will be put into operation one after another. It is estimated that the new capacity will reach more than 3 million tons this year.

Carbide method is a technology of elimination in western countries, and environmental pollution is serious.

In recent years, with the continuous rise of international oil prices, the disorderly expansion of PVC in domestic calcium carbide industry has attracted the attention of relevant departments, and the relevant policies have been promulgated one by one.

In October 2007, the State Development and Reform Commission stipulated in the "calcium carbide industry access conditions (Revised Edition 2007)" that the new calcium carbide plant must reach an annual production capacity of more than 200 thousand tons, and the single stage carbide furnace must be a sealed electric furnace with an annual output of more than 50 thousand tons. At the same time, it is stipulated that all the calcium carbide production plants with an annual output of less than 10 thousand tons and 10 thousand to 25 thousand tons of internal combustion electric furnaces must be eliminated before 2010.

In early 2008, the national development and Reform Commission announced the second batch of obsolete calcium carbide and coking industry backward production capacity list, and eliminated 20 backward calcium carbide enterprises, with a capacity of 221 thousand and 400 tons.

With the first batch eliminated, the capacity of calcium carbide was eliminated to 795 thousand and 600 tons.

Analysts believe that the final outcome of the surge in PVC capacity will depend on calcium carbide and downstream markets.

This year, with the backward production capacity of calcium carbide and the impact of upstream coal prices, the domestic price of calcium carbide increased by 500 yuan in April, and the average price of the mainstream was about 4000 yuan, up 45.45% over the same period last year.

Especially since the end of 2007, with the rapid expansion of PVC capacity in calcium carbide process in China, the market demand is increasing.

By the end of this year's Spring Festival, enterprises are buying raw materials to speed up production when they are optimistic about the future market.

However, this situation did not last for a long time and soon depressed.

On the one hand, the alarming rise in calcium carbide prices has given the PVC industry a heavy blow. On the other hand, the continued downturn in downstream market demand and the serious conflict have made it difficult for the high cost PVC industry to raise prices.

It is reported that the Yangtze River Delta is affected by factors such as continuous supply of electricity and raw materials, pportation and other factors this year. The capacity of calcium carbide has been greatly reduced. A large number of imported vinyl chloride monomer is needed to supply production. Some PVC production enterprises have been underrun due to the Limited supply of calcium carbide, and some enterprises have entered the state of vehicle shutdown and maintenance.

At present, the extremely intense supply of calcium carbide and the continuous price increase have become one of the main contradictions that affect the normal production and operation of PVC enterprises.

It is estimated that the supply and demand contradiction of calcium carbide market will be difficult to change in May, and the market price will continue to rise.

In this regard, experts pointed out that PVC as an energy intensive industry, in the long run, energy, cost, technology, quality, environmental protection and safety and other factors will continue to be an important factor affecting its long-term development.

Therefore, PVC production enterprises should have a clear understanding of expanding production.