Elimination of backward production capacity first shot, caustic soda downstream affected

On July 25, the Ministry of industry information technology announced the list of the first batch of enterprises with backward production capacity eliminated in industrial industries this year.

The list includes 19 industrial industries, including 140 274 companies involved in cement paper industries.

A close examination of the catalogue shows that 19 listed companies are listed.

According to the requirements of the Ministry of industry information technology, we will strive to shut down the backward production capacity of the enterprises listed in the announcement list before the end of September 2013, ensure that they are completely demolished eliminated before the end of 2013, can not be transferred to other regions.

Compared with the requirements of the Ministry of industry information technology on the backward production capacity of 19 industrial industries in 2012, there is no change in the time course, but there is a slight difference in the expression of "capacity transfer".

In 2012, the statement was: "no transfer to other regions neighboring countries.

" These 19 industries include ironmaking, steelmaking, coke, ferroalloy, calcium carbide, electrolytic aluminum, copper (including recycled copper) smelting, lead (including recycled lead) smelting, zinc (including recycled zinc) smelting, cement (clinker mill), flat glass, paper making, alcohol, monosodium glutamate, citric acid, leather making, printing dyeing, chemical fiber, lead-acid battery (plate assembly), etc.

Among them, in 2013, 6.

3486 million tons of paper production capacity was planned to be eliminated.

654400 tons of copper production capacity was planned to be eliminated.

260000 tons of aluminum production capacity was planned to be eliminated. 2.77 million tons of iron production capacity was eliminated.

807000 tons of lead (including recycled lead) smelting capacity was eliminated. 6.979 million tons of steel production capacity was eliminated.

145500 tons of zinc production capacity was eliminated. 16.303 million tons of coke production capacity was eliminated.

144200 tons of chemical fiber production capacity was eliminated.

monosodium glutamate production capacity was eliminated 220000 tons of flat glass will be eliminated, 16.

8 million tons of flat glass production capacity will be eliminated.

The list shows that about 19 listed companies are involved in the first batch of enterprises involved in the elimination of backward production capacity.

Among the listed paper-making companies, Chenming paper industry has become a major producer of backward production capacity: in addition to the 46200 tons (pulping capacity) eliminated by Chenming Paper headquarters, 220000 tons of Wuhan Chenming Paper Co., Ltd. was eliminated.

Fuyu Chenming Paper Co., Ltd., which was established in 2008, also eliminated 18000 tons of production capacity, totalling 284200 tons.

In addition, Shixian paper industry eliminated 130000 tons (pulping capacity).

Fujian Nanping Paper Co., Ltd. eliminated 30000 tons of paper-making capacity.

Huatai Co., Ltd. eliminated a total of 151900 tons.

Wuyang Yinge paper production Co., Ltd., invested by Yinge, eliminated 94000 tons.

Nanning Sugar paper mill eliminated 35000 tons.

According to Liu ruimao, an analyst at Guangdong Plastics Exchange, the elimination of backward production capacity involves many downstream industries of plastic chemical industry, especially the downstream of caustic soda.

For example, electrolytic aluminum, flat glass, papermaking, printing dyeing, chemical fiber industries, the elimination of backward production capacity is clear arduous, concentrated in Hebei, Henan, Shong, Zhejiang, Hubei Hunan Sichuan Chongqing.

Provinces cities with backward production capacity eliminated in various industries are concentrated as follows: electrolytic aluminum: Henan Province flat glass: Hebei, Inner Mongolia, Heilongjiang, Jiangxi, Hubei, Chongqing, Sichuan.

papermaking in Hebei, Zhejiang, Shong, Henan, Anhui, Jiangxi, Hubei, Hunan, Guangdong, Fujian, Sichuan, Chongqing, Guangxi, Gansu, Shaanxi, Xinjiang, Shanxi, Inner Mongolia, Liaoning, Jilin, China Printing dyeing: Hebei, Jiangsu, Liaoning, Shanghai, Henan, Zhejiang, Shong, Jiangxi, Hubei, Hunan, Guangdong, Fujian, Sichuan, Shaanxi, Gansu, Xinjiang Chemical Fiber: Zhejiang, Shong, Henan, Hubei Sichuan call for the elimination of backward production capacity energy conservation emission reduction every year, but the actual effect is limited, which shows that these two problems are difficult to be fundamentally solved in the short term.

Under the influence of blind investment capacity expansion, the pressure of overcapacity pattern further dominates the market.

To some extent, eliminating backward production capacity can alleviate the pressure of overcapacity in the market, guide the healthy reasonable development of the industry, force backward enterprises to shut down, help leading enterprises to become bigger stronger.

However, from the effect of the implementation in recent years, this kind of administrative intervention has not changed the pattern of overcapacity in multiple industries in China.

Perhaps the development law of the market itself is difficult to break.

However, the consequences of the caustic soda downstream affected comprehensively can not be underestimated.

In the short term, the downstream dem of caustic soda will have further reduction opportunities, which will directly pressure the market of caustic soda in the next few months.

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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.