Liuhua Group is a large fertilizer manufacturer in Gansu. The company’s propaganda minister, Duo Dusheng, told CCIN that even if the prices of Other raw materials remain unchanged, the company’s monthly electricity price will increase by 1.08 million yuan, and the annual production cost will increase by about 13 million yuan.
Hebei Yangmei Zhengyuan Chemical Industry Group Co., Ltd. is the largest urea production enterprise in Hebei Province. Zhang Lijun, vice chairman of the group, told CCIN: “They have received notification that the 2.97 points per kilowatt-hour increase will increase the cost per ton of urea electricity price. 40 yuan, plus other cost increases, it is estimated that the cost of urea per ton will increase by 70 to 80 yuan, and we will increase the cost by 4 to 5 million yuan per month."
Wu Guozhou, director of the enterprise management department of Hubei Saning Chemical Industry Co., Ltd., told the CCIN reporter that the current annual electricity demand is about 1.3 billion kwh, and the electricity cost accounts for 23% of the ammonia production cost. The increase in electricity prices directly increased production costs by 26 million yuan, and the proportion of electricity costs rose to 34.4%.
The CCIN reporter learned from the interview that the concern raised by the chemical companies regarding this increase in electricity prices was not just a direct cost increase. They are even more disturbed by the operating pressures caused by the rise in prices of other raw materials triggered by the increase in electricity prices and the poor conduct of the industry’s prices.
According to Liu Xiangming, general manager of Shaanxi Fugu Tianqiao Calcium Carbide Co., Ltd., the price of electricity is raised by 0.02 yuan/kWh, and the cost of ton calcium carbide will increase by about 70 yuan. If coal, white ash, and transportation companies increase the price of products and services at the same time due to rising electricity prices, The comprehensive cost of calcium carbide will also increase, and the operating pressure of the company will be even greater.
The concern of Jiagenzhu, chairman of Shanxi Tianze Coal Chemical Company, is that according to the usual practice, the increase in electricity price will inevitably push up the price of coal and push up the price of raw materials. Recently, some experts said that the increase in the price of electricity by 1 cent will always cause the price of coal to rise by forty to fifty yuan. This increased cost is ultimately passed on to the fertilizer company.
Zhu Bingli, deputy general manager of Shaanxi Qinling Chemical Fertilizer Corporation, also told CCIN that the increase in electricity price by 0.02 yuan/kWh did not seem to be large, but according to past experience, after the price of electricity rose, coal, catalyst, transportation, and packaging bags The price of such products will increase, and the overall cost of the company will increase significantly. In the case of excessive fertilizer and methanol production capacity, the rising costs of this part can hardly be passed on by increasing product prices. Therefore, after the electricity price rises, the company's life will be even more sad.
Zheng Xiaohong, president of Jiangxi Activated Carbon Association and general manager of Jiangxi Yushan Shanqing Activated Carbon Co., Ltd., also said with concern that rising electricity prices will bring about a series of price increases, such as coal prices, water prices, and raw materials. Wood processing is the main raw material industry for activated carbon. Upgrading of electricity prices will directly lead to the rise of wood chips raw materials, adding new costs to the wood activated carbon industry.
Relevant person in charge of the energy dispatching department of Jinlu Resin Company stated that for the chemical companies in the disaster-stricken areas in Sichuan Province, they have just experienced the impact of the 5.12 Wenchuan earthquake and have not fully recovered to the level before the earthquake. The company is a calcium carbide producer of PVC. With the adjustment of electricity prices, the cost of calcium carbide producers will certainly rise. If these companies pass the cost pressure to the downstream calcium carbide PVC manufacturers, they will also have an impact on them. .
Raise the price of electricity and increase the power limit
In the interview, the CCIN reporter found that although companies have no shortage of complaints about the increase in electricity prices, there is no shortage of fears. However, worrying about the return of concerns, the interviewed companies have said in unison that the increase in electricity prices is always better than ever.
Liu Xingxu, chairman of Henan Xinlianxin Chemical Fertilizer Co., Ltd., believes that “the rise in electricity prices will not immediately lead to the closure of companies’ parking, and its impact will only be reflected in the market. The “temporary†behavior of power cuts is even more damaging. In addition, chemical production is a process-type operation, which will increase fixed costs, depreciation and interest expense sharing, and will affect the profits of enterprises.â€
Yang Yuhua, executive vice president of Shanxi Haobao New Energy Group, also said that limiting the use of electricity to the chemical industry could not guarantee the quality of products in this continuous production industry, and the product sales channels were not smooth, thus reducing the credibility of the company. More importantly, the limited power of chemical companies has caused the machine to shut down abnormally, which may result in the burning of motors and circuit boards, as well as wasting a lot of power.
Wang Yingxian also explicitly selected price adjustments. He said: "I can still make normal electricity prices. To limit electricity, companies can't stand it."
Lu Yibing, assistant general manager of Guizhou Crystal Group Co., Ltd., believes that the power price increase can be digested by scientifically using energy, increasing product output, and saving energy and reducing consumption, while power cuts affect the production load. As far as the Crystal Group’s chemical plants are concerned, at least one million yuan will be lost for every parking lot.
Zhu Bingli told the CCIN reporter that frequent power cuts will bring great security risks to chemical plants that have continuous operation requirements. Although rising electricity prices will raise the production costs of enterprises, if we accelerate the elimination of outdated production capacity and can effectively alleviate the contradiction of supply of chemical products in excess of demand, then when the market supply and demand balance, enterprises can increase the cost, Conducting out by increasing the price of the product will not be hurt.
Liu Qianbo, director of the office of Hubei Qianjiang Jinhua Run Chemical Fertilizer Co., Ltd., agrees. He told CCIN reporter that chemical fertilizer production has characteristics such as high temperature, high pressure, and high continuity. Therefore, power supply stability is very important. Whether from the perspective of safety or from the perspective of stable production, fertilizer companies should not be subject to power cuts.
Zhang Lijun said that compared with the increase in electricity prices, the impact of power cuts is even greater. The increase in electricity price can be increased, and the increase in cost can eventually be passed on to products. However, power cuts not only affect the output of the company's products, but also the low-load operation of the production system will affect the normal use of the equipment.
Huang Guangming, general manager of Jiangxi Guixi Chemical Fertilizer Co., Ltd., said: “At present, many companies are being cut off from power restrictions, enterprises have to reduce the load or even stop production. The contracts that have been signed cannot be fulfilled, seriously affecting the normal production and efficiency of enterprises. To increase the tariff, fertilizer companies prefer to choose price adjustments, but hope to ensure the power supply."
Hebei Yangmei Zhengyuan Chemical Industry Group Co., Ltd. is the largest urea production enterprise in Hebei Province. Zhang Lijun, vice chairman of the group, told CCIN: “They have received notification that the 2.97 points per kilowatt-hour increase will increase the cost per ton of urea electricity price. 40 yuan, plus other cost increases, it is estimated that the cost of urea per ton will increase by 70 to 80 yuan, and we will increase the cost by 4 to 5 million yuan per month."
Wu Guozhou, director of the enterprise management department of Hubei Saning Chemical Industry Co., Ltd., told the CCIN reporter that the current annual electricity demand is about 1.3 billion kwh, and the electricity cost accounts for 23% of the ammonia production cost. The increase in electricity prices directly increased production costs by 26 million yuan, and the proportion of electricity costs rose to 34.4%.
The CCIN reporter learned from the interview that the concern raised by the chemical companies regarding this increase in electricity prices was not just a direct cost increase. They are even more disturbed by the operating pressures caused by the rise in prices of other raw materials triggered by the increase in electricity prices and the poor conduct of the industry’s prices.
According to Liu Xiangming, general manager of Shaanxi Fugu Tianqiao Calcium Carbide Co., Ltd., the price of electricity is raised by 0.02 yuan/kWh, and the cost of ton calcium carbide will increase by about 70 yuan. If coal, white ash, and transportation companies increase the price of products and services at the same time due to rising electricity prices, The comprehensive cost of calcium carbide will also increase, and the operating pressure of the company will be even greater.
The concern of Jiagenzhu, chairman of Shanxi Tianze Coal Chemical Company, is that according to the usual practice, the increase in electricity price will inevitably push up the price of coal and push up the price of raw materials. Recently, some experts said that the increase in the price of electricity by 1 cent will always cause the price of coal to rise by forty to fifty yuan. This increased cost is ultimately passed on to the fertilizer company.
Zhu Bingli, deputy general manager of Shaanxi Qinling Chemical Fertilizer Corporation, also told CCIN that the increase in electricity price by 0.02 yuan/kWh did not seem to be large, but according to past experience, after the price of electricity rose, coal, catalyst, transportation, and packaging bags The price of such products will increase, and the overall cost of the company will increase significantly. In the case of excessive fertilizer and methanol production capacity, the rising costs of this part can hardly be passed on by increasing product prices. Therefore, after the electricity price rises, the company's life will be even more sad.
Zheng Xiaohong, president of Jiangxi Activated Carbon Association and general manager of Jiangxi Yushan Shanqing Activated Carbon Co., Ltd., also said with concern that rising electricity prices will bring about a series of price increases, such as coal prices, water prices, and raw materials. Wood processing is the main raw material industry for activated carbon. Upgrading of electricity prices will directly lead to the rise of wood chips raw materials, adding new costs to the wood activated carbon industry.
Relevant person in charge of the energy dispatching department of Jinlu Resin Company stated that for the chemical companies in the disaster-stricken areas in Sichuan Province, they have just experienced the impact of the 5.12 Wenchuan earthquake and have not fully recovered to the level before the earthquake. The company is a calcium carbide producer of PVC. With the adjustment of electricity prices, the cost of calcium carbide producers will certainly rise. If these companies pass the cost pressure to the downstream calcium carbide PVC manufacturers, they will also have an impact on them. .
Raise the price of electricity and increase the power limit
In the interview, the CCIN reporter found that although companies have no shortage of complaints about the increase in electricity prices, there is no shortage of fears. However, worrying about the return of concerns, the interviewed companies have said in unison that the increase in electricity prices is always better than ever.
Liu Xingxu, chairman of Henan Xinlianxin Chemical Fertilizer Co., Ltd., believes that “the rise in electricity prices will not immediately lead to the closure of companies’ parking, and its impact will only be reflected in the market. The “temporary†behavior of power cuts is even more damaging. In addition, chemical production is a process-type operation, which will increase fixed costs, depreciation and interest expense sharing, and will affect the profits of enterprises.â€
Yang Yuhua, executive vice president of Shanxi Haobao New Energy Group, also said that limiting the use of electricity to the chemical industry could not guarantee the quality of products in this continuous production industry, and the product sales channels were not smooth, thus reducing the credibility of the company. More importantly, the limited power of chemical companies has caused the machine to shut down abnormally, which may result in the burning of motors and circuit boards, as well as wasting a lot of power.
Wang Yingxian also explicitly selected price adjustments. He said: "I can still make normal electricity prices. To limit electricity, companies can't stand it."
Lu Yibing, assistant general manager of Guizhou Crystal Group Co., Ltd., believes that the power price increase can be digested by scientifically using energy, increasing product output, and saving energy and reducing consumption, while power cuts affect the production load. As far as the Crystal Group’s chemical plants are concerned, at least one million yuan will be lost for every parking lot.
Zhu Bingli told the CCIN reporter that frequent power cuts will bring great security risks to chemical plants that have continuous operation requirements. Although rising electricity prices will raise the production costs of enterprises, if we accelerate the elimination of outdated production capacity and can effectively alleviate the contradiction of supply of chemical products in excess of demand, then when the market supply and demand balance, enterprises can increase the cost, Conducting out by increasing the price of the product will not be hurt.
Liu Qianbo, director of the office of Hubei Qianjiang Jinhua Run Chemical Fertilizer Co., Ltd., agrees. He told CCIN reporter that chemical fertilizer production has characteristics such as high temperature, high pressure, and high continuity. Therefore, power supply stability is very important. Whether from the perspective of safety or from the perspective of stable production, fertilizer companies should not be subject to power cuts.
Zhang Lijun said that compared with the increase in electricity prices, the impact of power cuts is even greater. The increase in electricity price can be increased, and the increase in cost can eventually be passed on to products. However, power cuts not only affect the output of the company's products, but also the low-load operation of the production system will affect the normal use of the equipment.
Huang Guangming, general manager of Jiangxi Guixi Chemical Fertilizer Co., Ltd., said: “At present, many companies are being cut off from power restrictions, enterprises have to reduce the load or even stop production. The contracts that have been signed cannot be fulfilled, seriously affecting the normal production and efficiency of enterprises. To increase the tariff, fertilizer companies prefer to choose price adjustments, but hope to ensure the power supply."
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