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Overcapacity, difficult to digest downstream soda ash market trapped

wallpapers News 2020-06-27

Since the third quarter, the domestic soda ash market has been sluggish again, the price of products has become the main keynote.

With the arrival of the downstream off-season, soda ash market will gradually enter the bitter winter with the season.

At present, the domestic soda ash market has been difficult to find even lost its periodicity, even disordered without regularity.

The market is in deep trouble.

Excess capacity is difficult to digest downstream.

At present, the total capacity of soda ash in China has reached 30 million tons.

In addition to several backbone enterprises with more than 1 million tons, such as Shong Haihua, Tangshan Sanyou Sinopec Lianyungang Soda Plant, there are more than 100 large-scale enterprises with more than 300000 tons.

However, although soda ash industry has suffered heavy losses since 2008, the pace of capacity expansion has never stopped.

In recent years, with the market slightly improved, a new round of capacity expansion has reappeared, mainly concentrated in Jiangsu Qinghai.

Jiangsu focuses on Huai'an Xuzhou, making use of the local rich brine resources.

Among them, the production capacity built or under construction includes 900000 tons of Jiangsu Jingshen Salt Chemical Company, 600000 tons of Jiangsu huaerrun company, 1 million tons of Taiwan Glass Group (Jiangsu) company, 600000 tons of Xuzhou Yiduo company.

Qinghai other western regions are also making use of the local rich salt mines, coke, calcium carbonate other resources to exp the capacity of soda ash.

Under the situation that the industry is already in serious surplus, there are million tons of new production capacity each year, which aggravates the deviation between supply dem, making it difficult for downstream to match digest.

Although soda ash is one of the most basic chemical raw materials, it has a wide range of uses, but the downstream is generally weak weak to undertake.

In its main downstream, the consumption proportion of soda ash is 49% for flat glass, glass container other glass, 10% for soap other detergents, 10% for sodium tripolyphosphate, sodium silicate zeolite, 11% for chemicals 20% for printing dyeing other industries.

At present, the real estate industry needs to recover, the number of new construction projects has been greatly reduced, which directly leads to the sharp decrease in the dem for glass in the real estate industry, which is transmitted to the soda ash industry.

the phosphate industry is in a historical low point, the total dem is declining.

since the European debt crisis, the export of China's traditional printing dyeing textile industry has been hindered, especially in Jiangsu Zhejiang provinces.

These adverse factors reduced the market dem for soda ash.

In 1892, Belgian Engineer Solvi invented the ammonia alkali method to produce soda ash.

In 1926, Chinese chemist Hou Debang invented the process of soda ash production.

In the early days, the waste liquid was directly discharged into the sea.

After that, the direct discharge was replaced by dike construction on the beach, the solid substance was mostly used to increase the dam of slag yard.

Every 1 ton of ammonia alkali production needs to discharge 10 cubic meters of waste liquid, in which the solid content is about 3%.

It can be seen that although the ammonia alkali plant has the advantages of raw material salt being in the eastern core market, with the increasing investment in environmental protection, the above advantages will be weakened.

There is no waste residue in the process of soda production, but it also has obvious defects.

Enterprises adopting the combined alkali process can recover ammonium chloride from mother liquor sell ammonium chloride as chemical fertilizer, so as to eliminate calcium chloride waste liquid its pollution.

Since no lime kiln is needed, the combined alkali process is superior to ammonia alkali process in environmental protection, raw material utilization rate production cost.

However, the output ratio of ammonium chloride soda ash is as high as 1:1, resulting in a large surplus of ammonium chloride.

Because ammonium chloride has few uses, most of them can only be used as nitrogen fertilizer in agriculture, but its nitrogen content is far lower than that of urea, its large use can also lead to soil acidification hardening, the market prospect is dim.

Excess ammonium chloride is the fundamental reason why it can not completely replace ammonia alkali process.

In the market competition of ammonia alkali combined soda, the actual game in the future is alkali residue treatment ammonium chloride disposal, because the two can directly restrict who has higher driving rate whose price is more competitive.

As a bulk chemical product, soda ash production has the characteristics of large input large output.

It consumes 1.

5 tons of raw salt 1.

4 tons of calcium carbonate per ton of alkali, also consumes hundreds of kilograms of coal, coke, etc.

at the same time, it also produces a lot of logistics.

Since the implementation of the new policy of liberalizing raw salt, the price of raw salt has increased steadily, increasing the purchase cost of soda ash.

with the increasingly strict restrictions on quarrying in various places, the purchase cost of calcium carbonate remains high.

at the same time, the labor logistics costs have risen rigidly, the production costs have also increased.

At present, soda ash industry is faced with irresistible cost rising factors.

However, although soda ash has a very high impulse practical need to pass on the factors of price increase, the market supply is far higher than the dem, restricted by the relationship between supply dem, the price of soda ash is weak.

Therefore, for a long time in the future, soda ash will maintain the following operation trajectory: when some enterprises can not afford low-cost operation are forced to stop for maintenance, the industry's driving rate is too low, the overall social inventory tends to be zero, the product price will rebound to a certain extent, show a short-term pulse market.

To sum up, the soda ash market will be in deep trouble for a long time due to many factors affecting the market.


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