The overall benefit of reducing soda ash production capacity is better than last year

wallpapers Industry 2020-12-09

a few days ago, Wang Xiling, President of China Soda Ash Industry Association, said that the market of ammonium chloride improved in the second quarter of this year, driving the efficiency of domestic combined soda production enterprises to improve. This makes the overall benefit of soda ash industry this year is expected to be better than last year, and the loss amount and loss area will be reduced. The price of

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ammonium chloride rebounded, and the combined soda plant began to turn a loss. According to Wang Xiling, the situation of ammonium chloride industry has improved since April this year. On the one hand, the output of ammonium chloride decreased year on year. By the end of May, domestic ammonium chloride production had decreased by more than 200000 tons compared with last year, with a year-on-year decrease of 4.5%. "Last year, seven Lianhe soda enterprises stopped production because of losses. Since the beginning of this year, these enterprises are still in the state of production suspension, and have no capacity to release. Therefore, although the capacity of soda ash and ammonium chloride in the first five months of the existing combined soda enterprises has increased, the total amount still decreased year on year

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on the other hand, the export volume of ammonium chloride has increased significantly this year. In 2014, the export policy of ammonium chloride was adjusted, and the policy of ammonium chloride for fertilizer was cancelled in the previous low and peak seasons, and it was collected at the rate of 5% for the whole year. Although the tariff reduction of ammonium chloride did not take immediate effect and the export volume of that year did not increase significantly, it was found that the export volume of ammonium chloride increased significantly in 2015. By the end of May this year, the export volume of domestic industrial ammonium chloride reached 55000 tons, with a year-on-year increase of 17%; the export volume of ammonium chloride for fertilizer reached 450000 tons, with a year-on-year increase of 340%; the export volume of binary compound fertilizer reached 470000 tons, with a year-on-year increase of 324%. In April, the price of urea rose and the supply of urea was in short supply; in May, China's urea led the world's rise in fertilizer preparation. This virtually pushed up the price of ammonium chloride. The comprehensive effect of

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makes the price of ammonium chloride rise from April to June, and the price of ammonium chloride (including dry ammonium and wet ammonium) has increased by about 200 yuan (ton price, the same below) by more than 60% Wang Xiling said. The demand for

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soda ash is still insufficient and the benefit is not obvious.

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Wang Xiling said that in the first quarter of this year, although the price of soda ash was acceptable, the combined soda enterprises were still in a loss state due to the bad market situation of ammonium chloride. However, from April to June, due to the rising price of ammonium chloride, 60% of the combined soda enterprises have been in a good condition, and they have not lost money in a single month, but the profit situation is still not good. This is due to the recovery of the market of ammonium chloride after April, the increase of enterprise operation, the increase of soda ash supply in the market and the decrease of soda ash price. It is understood that since the second quarter of this year, the price of soda ash has decreased by about 100 yuan, which makes the benefits of soda ash enterprises including the combined soda plant and ammonia soda plant not significantly improved. Wang Xiling of

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believes that the root cause of the price decline of soda ash is the downstream demand, that is, the sharp decrease in the demand for soda ash from flat glass. "In the past, the demand for soda ash from flat glass increased by more than 10% every year, and dropped to 1% last year. Since the beginning of this year, it has become a negative growth, only - 6%. A large number of flat glass overstocked, resulting in the decline of its production, and the support for soda ash is in a cliff type decline. The demand for soda ash in other downstream industries has also decreased, but it is not as powerful as flat glass. " The capacity release of

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is restrained, and the market will improve in the whole year. As the downstream demand of

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decreases, the price of light soda ash and heavy soda ash in the first half of this year is seriously inverted.

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Wang Xiling said: "heavy soda ash is a reprocessing product of light soda ash, and its price is generally higher than that of light soda ash. However, the sales volume of heavy soda ash is restrained by the decline in demand this year, and it is difficult for enterprises to recover their loans. Therefore, the relevant enterprises have reduced the production of heavy soda ash and only produced light soda ash. In the market, the price of light soda ash was 30-50 yuan higher than that of heavy soda ash. "

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it is understood that there are new signs in the market at present, that is, the price of light soda ash also begins to fall. It is understood that the combined soda plant, which mainly produces light soda ash, has increased its output load due to the rise in the price of light soda ash, while the ammonia soda plant, which mainly produces heavy soda ash, has also increased the output of light soda ash due to the decrease of sales volume of its main products. As a result, the supply of light soda ash increased in June, and the price also decreased accordingly. And this will drive the price of heavy soda ash further down. The lower price of

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soda ash is beneficial to restrain the increase of production capacity. "In the second half of this year, among the seven joint soda enterprises with a total capacity of 2.2 million tons, only one small enterprise with a scale of 100000 tons will start operation, and the others will have no additional capacity. And demand will remain the same. Therefore, on the whole, driven by the market of ammonium chloride, the soda ash industry this year will be better than last year. " Wang Xiling said.


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