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China's PVC production process is divided into ethylene and calcium carbide method, which calcium carbide production capacity accounted for about 73% of the total capacity of PVC. Ethylene PVC is of good quality but is greatly affected by the price of crude oil. The low cost of calcium carbide process PVC raw materials, compared with the ethylene method, is 750 to 1200 yuan per ton, with a strong cost advantage. The view is that China is a country rich in coal and oil, with the global oil prices, the calcium carbide process PVC provides the production expansion of the market space. It is understood that the Central and Western Regions Coal and Salt Industry Group has made great strides in the PVC industry with its own resources and financial advantages. Xinjiang Zhongtai Chemical Co., Ltd. determined this year that PVC will be expanded to an annual output of 420,000 tons. According to the overall plan and the demand for calcium carbide, the company plans to expand its annual production capacity of 500,000 tons of calcium carbide project in the subsidiary Zhongtai Mining and Metallurgical Company with a total investment of 939 million yuan. The project will be constructed in two phases and the first phase will be to build an annual output of 200,000 tons of calcium carbide. In addition, the Henan Henan Lianchuang Chemical Co., Ltd. annual output of 300,000 tons of PVC resin expansion project, and the Gansu North Santai Chemical Co., Ltd. annual output of 120,000 tons of PVC and other new PVC devices will be put into operation one after another. It is expected that China's new production capacity will reach 3 million this year. More than tons.
The calcium carbide process is a phase-out process in Western countries and has serious environmental pollution. In recent years, with the continuous rise of international oil prices, the disorderly expansion of PVC in the domestic calcium carbide method has attracted the attention of relevant departments, and the country has successively issued relevant policies. In October 2007, the National Development and Reform Commission stipulated in the “Admission Requirements for the Calcium Carbide Industry (Revised in 2007)†that the newly-built calcium carbide plant must achieve annual production of over 200,000 tons, and a single calcium carbide furnace must be sealed at an annual output of 50,000 tons or more. Electric furnace; also provides that before 2010, we must eliminate all calcium carbide production plant with an annual output of 10,000 tons, 10,000 to 25,000 tons of internal combustion type electric furnace. At the beginning of 2008, the National Development and Reform Commission announced the list of the backward production capacity of calcium carbide and coking industries that were eliminated in the second batch. A total of 20 backward companies were eliminated and the production capacity was 221,400 tons. With the elimination of the first batch, the calcium carbide phase-out capacity reached 795,600 tons.
Analysts believe that the end result of the dramatic increase in PVC production capacity will depend on calcium carbide and the downstream market. This year, with the lagging production capacity of calcium carbide out of the market, and the impact of rising coal prices in the upper reaches, the domestic price of calcium carbide per ton rose by 500 yuan in April, and the average price in the mainstream was about 4,000 yuan, up 45.45% from the same period of last year. In particular, from the end of 2007 to the present, with the rapid expansion of PVC production capacity in the domestic calcium carbide process, the market demand is increasing. By the end of the Spring Festival this year, companies have been procuring raw materials to speed up production after they are optimistic about the market outlook. However, this situation did not last long and it soon subsided. On the one hand, the astonishing increase in the price of calcium carbide has given the PVC industry a heavy blow. On the other hand, the continuing downturn in demand in the downstream market and the serious resistance have made it difficult for the high-cost PVC industry to raise prices. It is reported that due to continuous power supply and raw materials, transportation and other factors affecting the Yangtze River Delta since the beginning of the year, the production capacity of calcium carbide has been greatly reduced, and large quantities of vinyl chloride monomer have to be imported to meet the production needs. Some PVC production enterprises are under-employed due to limited supply of calcium carbide. The company enters the parking maintenance state.
At present, the extreme tension in the supply of calcium carbide and the continuous rise in prices have become one of the major contradictions affecting the normal production and operation of calcium carbide process PVC companies. It is expected that in May, the contradiction between supply and demand in the calcium carbide market will be difficult to change, 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 many other factors will still be an important factor affecting its long-term development. Therefore, PVC manufacturers must have a clear understanding of expansion.
The calcium carbide method PVC has been expanded to “sweepâ€
After March, as the depreciation of the dollar speeded up, the rate of increase of international oil prices also accelerated. On May 8th, light crude oil futures prices for June delivery on the New York Mercantile Exchange reached 124.61 dollars per barrel in after-hours electronic trading, setting a record high for crude oil futures since trading began in 1983. High oil prices will inevitably drive up the price of basic energy and chemical raw materials. The calcium carbide polyvinyl chloride (PVC) companies will enjoy the high price of oil products and provide market space for their expansion. However, industry experts have warned that PVC manufacturers must have a clear understanding of expansion, and expansion is not as optimistic as expected. The hidden dangers of overcapacity are worth pondering.