Calcium carbide raw material was forced to stop production! PVC prices to jump by 5%
Recently, Yulin City, Shaanxi Province issued the “Notice on Ensuring the Completion of the Energy Consumption Dual Control Target Task in 2021”, with a maximum production limit of 60%!
The document stated that some key energy-consuming enterprises will be subject to regulatory measures such as production restriction and production suspension, and the regulation time will last as long as 4 months! Among them, the newly built “two highs” projects must not be put into production; the newly built “two highs” projects that have been put into production will limit the production by 60%; the remaining “two highs” projects will reduce the production load and limit the production by 50%!
Yulin City in Shaanxi requires local coal chemical companies to reduce their output by 50% in the fourth quarter.
The Yulin area is also the PVC production area in Shaanxi, accounting for 5.97% of the country’s total PVC production capacity. There are two companies in the Yulin area, Shaanxi Beiyuan, and Shaanxi Jintai, both of which are affected by the dual control and limit their production to 50%. At present, the overall start-up of PVC in China is not high. Although the companies that have been overhauled in the early stage are gradually recovering, there are still some companies that are affected by the tight supply of raw materials, and it is difficult to start and upgrade.
The PVC enterprises in the Yulin area are all calcium carbide enterprises, with a total production capacity of 3 million tons of calcium carbide, accounting for about 7% of the total production capacity of calcium carbide in the country. Among them, Beiyuan’s supporting calcium carbide can only meet 30% of the demand for PVC production, and 70% of it still needs to be mined outside. In addition, most enterprises of calcium carbide raw material blue charcoal are “forced” to suspend production, coupled with the withdrawal of 50,000 tons of furnace models from the market, there is a certain gap in the supply of blue charcoal. If implemented in accordance with the document, the supply of blue charcoal will be even tighter, and the actual implementation of the company needs to be further observed.
At present, Shaanxi is affected by the National Games, with strict traffic control and certain restrictions on the transportation of hazardous chemicals, which has exacerbated the impact of calcium carbide arrivals in various regions. The price of raw calcium carbide continued to rise this week, continuing the trend of tight goods and high prices.