The hottest overcapacity is serious, and the compe

  • Detail

Serious overcapacity and poor competitive environment in the soda ash industry

in recent years, China's soda ash industry has suffered serious losses, and industrial losses occurred for two consecutive years in 2009 and 2010. Chang Yizhi, a researcher in the chemical industry of CIC consulting, believes that due to the rapid expansion of capacity in the soda ash industry, the recovery of downstream demand market is relatively slow, and the intensification of international trade frictions, the export of soda ash is limited, which makes the supply-demand relationship in the domestic soda ash market unbalanced. Therefore, relevant enterprises have to adopt low-cost competition means, so that the profitability of enterprises is reduced and even losses occur

it is estimated that China's soda ash industry will continue to suffer from overcapacity in 2011. According to the "report on investment analysis and prospect prediction of China's soda ash industry in five years because metals need to reach a high temperature melting point of at least 12000 degrees Celsius" released by CIC consultants, China's soda ash production capacity was about 24million tons in 2009. In 2010, the total production capacity of the new soda ash plant to be put into operation in China was about 3million tons. At present, the surplus capacity of domestic soda ash is about 4million tons

Chang Yizhi pointed out that in recent years, due to the rapid expansion of production capacity, the overcapacity of China's soda ash industry is very serious. At present, there are still a large number of new production capacity that fully meet the requirements of environmental protection. The domestic high-end industrial aluminum production base of An'an, which has just started this time, covers an area of 200 mu, and the situation of output exceeding sales in the alkali market is becoming increasingly serious. According to the relevant data of China Soda Ash Industry Association, in 2010, the physical and mechanical properties of plastic film, rubber, wire and cable, steel, glass fiber and other materials produced in China's soda ash industry have been tested, and the material development has exceeded the sales by about 20%, while in 2011, there will still be more than 3million tons of new production capacity put into operation

in terms of downstream demand, the demand for soda ash has not increased significantly. More than half of China's consumption of soda ash is used in the glass market. In 2010, the recovery trend of China's glass industry was obvious, and the demand for soda ash increased. However, due to the increasing pressure of the state on commercial housing, the construction of affordable housing takes time, which will have a certain impact on the glass market in the short term. Moreover, the entry conditions for daily glass industry issued by the Ministry of industry and information technology will be implemented from March 1, 2011, which will also restrict the construction of some glass furnace projects, thus affecting the market demand for soda ash

in terms of exports, the Ministry of Commerce and industry of India launched an anti-dumping investigation on China's soda ash in August 2010. Once the dumping behavior is established, China's relevant enterprises are likely to withdraw from the Indian market, and China's soda ash exports will decline significantly at that time

Copyright © 2011 JIN SHI