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Also in the midst of excitement, the general manager of Shaanxi Fugu Xinlong Chemical Co., Ltd. Gao Baoqing said that since March of this year, with the return of normal electricity supply and transportation in the south, the original inventory of calcium carbide enterprises in the north was quickly being digested and the calcium carbide was promoted. Prices have steadily increased. At present, the ex-factory price of calcium carbide in Yulin Prefecture has generally risen from 2,400 yuan/ton in mid-February to 2,800 yuan/ton, and sales have been very smooth. "According to the current market, or a few days, the ex-factory price of calcium carbide can be exceeded 3,000 yuan / ton, gross profit can be increased to 500 to 600 yuan / ton." Gao Bao Qing cheerfully said.
The price predicted by Gao Baoqing has become a reality at Inner Mongolia Baiyan Lake Chemical Co., Ltd. Yuan Xiu, deputy general manager of the company, told reporters that at present, the company's calcium carbide ex-factory price has increased from 2,800 yuan/ton in early March to 3,100 yuan/ton, and sales are not a problem. According to the local grid electricity price of 0.34 yuan / kWh, tons of calcium carbide power consumption of 3400 kwh, the current ton calcium carbide costs about 2100 yuan, and then count the labor costs, safety and environmental protection input and equipment operating costs, and transportation and management, financial costs, The pre-tax cost of ton of calcium carbide is about 2,500 yuan, and gross profit is about 600 yuan. After deducting 17% of the value-added tax and corporate income tax, the net profit of calcium carbide products can reach 200 to 300 yuan/ton.
“The calcium carbide companies can usher in a good year this year, thanks to the country’s macro-control policies and the growth of downstream demand.†Yuan Xiu said sincerely. On the one hand, for the calcium carbide industry's existing high energy consumption, heavy pollution, serious overcapacity, and disorderly competition, since 2004, the country has adopted the implementation of differential electricity prices to improve access to calcium carbide industry, eliminating backward production capacity. A series of control measures such as the control of the excessive growth of the total amount of calcium carbide has effectively curbed the blind development of enterprises and the disorderly expansion of production capacity. Since 2007, the National Development and Reform Commission has announced the listing of two batches of “allowed†calcium carbide companies, and eliminated a total of 700,000 tons of backward production capacity of 103 home appliance companies. Under the guidance of the national policy, the Inner Mongolia Autonomous Region Government decided to reduce the production of calcium carbide in the region from 5.6 million tons last year to 5 million tons this year. Shanxi Province proposed to phase out the backward production capacity that accounts for 58% of the total capacity of calcium carbide in the province by the end of 2010. The major calcium carbide production areas such as Shaanxi and Ningxia have also eliminated the production capacity of backward calcium carbide, which accounted for more than 10% of their total calcium carbide production capacity, and strict implementation of the newly revised “access conditions for the calcium carbide industryâ€, which has greatly increased the industry's access threshold and eliminated Low-level redundant construction has effectively controlled the total amount of calcium carbide. On the other hand, the downstream polyvinyl chloride industry has expanded rapidly in the past two years, and the demand for calcium carbide has always maintained at more than 20%. "Comprehensive factors ultimately contributed to the basic balance between supply and demand in the calcium carbide market, and companies have only had a good day today." Yuan Xiu said.
"But the company does not want to be too optimistic calcium carbide," Yuan Xiu reminded that the rise in international oil prices will drive the cost of calcium carbide rise. At present, the PVC industry seems to be following in the footsteps of the calcium carbide industry. The consequences of blind expansion of production capacity will soon become apparent. Once the PVC industry starts to compete arbitrarily, the profit margin of the company will be greatly reduced, and its cost of calcium carbide will be sustained. Power will weaken and demand will decrease. What is even more worrying is that as the price of coal continues to rise, there is increasing pressure to increase the price of electricity. Even if the price of electricity is raised at a very small level, there will be a huge negative impact on the calcium carbide companies whose electricity costs account for more than 70% of production costs. “In order to make the hard-earned good situation in the calcium carbide industry sustainable, it is hoped that local governments will continue to increase the closure and elimination of backward production capacity and strictly enforce the access conditions, especially to prevent the re-emergence of 'restricted' and 'out-of-class' companies. Otherwise, the calcium carbide business will not last long."
The calcium carbide company finally got its spring breeze
“The current ex-factory price of calcium carbide is 3,500 yuan/ton, and the supply is in short supply. The newly-released products were taken away by customers waiting in line.†Manager Zhu of Hubei Xianning Hengyu Material Trading Co., Ltd. said in an interview with reporters. The reporter learned that since the restoration of power supply and transportation in various power grids at the end of February, the production of calcium carbide companies has not stopped for a moment. Moreover, due to strong downstream demand, many companies do not have any inventory, showing a rare seller's market for several years, the calcium carbide company finally felt the breeze blowing.