The market place scenario of Chinese Chlor-alkali sector changed greatly in 2008. Impacted by the economic crisis and the industrial cycle, the Chlor-alkali enterprises went by means of a tendency from making earnings to generating deficits. Although 2009 is still a tough year.
It is estimated that by the end of 2008, the productivity of Chinese PVC had reached 15.81 million tons, rising by 9.2% more than 2007(14.48 tons). The productivity of Chinese Chlor-alkali had reached 24.72 tons, rising by 13.3% compared over 2007 (21.81 tons). The growth rate was much decrease than numerous years ago.
In 2008, the market value of products in Chinese Chlor-alkali sector went up and down like roller coasters. The highest cost of PVC was about 9,000 RMB per ton and the lowest cost was five,000 RMB per ton. While the highest price of the liquid caustic soda (converted into one hundred%) was two,800 RMB per ton and the lowest price tag was two,000 RMB per ton. The violent fluctuation of price of goods had hindered the formulation of production and sales plans by enterprises.
Affected by the appreciation of RMB and anti-dumping movements abroad in 2008, it became challenging to export and sell Chinese Chlor-alkali goods, specifically PVC merchandise. Because the third quarter of 2008, the fees of foreign items has decreased drastically as the global crude oil value fell back. The cost advantages of Chinese Chlor-alkali goods disappeared progressively and the export volumes fell sharply.
In 2008, South China went by way of a wide range of rain and snow and the supplies of power and railway transportation had been cut down in some areas. This caused a heavy damage to the production and transportation of chlor-alkali items. In May, the earthquake in Sichuan stopped the production activities of several chlor-alkali enterprises in this area, bringing about gigantic economic losses to the producers straight and indirectly. According to statistics, the outputs of Chinese PVC were 8.817 million tons in 2008, decreasing by 9.25% more than the last year (9.72 million tons). The outputs of sodium hudroxide have been 18.521 million tons, increasing by 5.27% compared with the outputs in final year (17.593 tons). Simply because the development price of the productivity was much higher than that of outputs, the overall price of operation of chlor-alkali devices was low.
After the third quarter of 2008, affected by the constantly low demands in the reduced course, the stocks of companies elevated and the promoting value went down significantly. They suffered fantastic losses. Far more and more manufacturing devices had been stopped using and those working devices had significantly much less loads. The all round rate of operation of PVC was only 30% to 40% and the price of operation of sodium hudroxide was 50% to 60%.
In 2009, Chinese chlor-alkali industry will still have to face the harsh tests and there will be many variables in the process of the improvement of the industry.
In 2009, Chinese chlor-alkali industry doesn’t cease its step of expanding the production even though there is monetary crisis. According the statistics of China chlor-alkali online, in 2009, the predicted productivity of invested PVC is three.33 million tons and sodium hudroxide four.95 million tons. According to 2008, with the decrease of demands, the rate of operation of devices was badly insufficient. Specially the price of operation of PVC devices was below 60%. Therefore, in 2009, with the improve of the productivity, the rate of operation of devices will continues to fall down.
According to the outputs of 2008, the outputs of PVC had been much less than 2007 and the development rate of the outputs of sodium hudroxide was considerably lower than earlier years. It is estimated that in 2009 the outputs of Chinese PVC will boost greatly compared with 2008. But the development rate of the outputs of sodium hudroxide will continue to slow down.
In 2008, the cost of Chinese chlor-alkali goods, particularly the value of PVC, fluctuated drastically. This resulted in some losses to those enterprises. It is estimated that it will be hard for the price of Chinese chlor-alkali industry to alter sharply in 2009. The manufacturers will manage their outputs properly according to the demands. And the supply and demand of the industry will be balanced on the whole.
With the decrease of the international crude oil cost, the charges of foreign ethylene PVC has been reduce down and the quantities of resources that enter Chinese industry will constantly increase. It is estimated that the export volumes of Chinese sodium hudroxide will enhance. And as some devices for sodium hudroxide abroad have been shut down, the demand for Chinese sodium hudroxide will increase, which is surely an chance for Chinese sodium hudroxide manufacturers.
Because the expanding speed of the productivity of Chinese chlor-alkali enterprises was so quickly in the last few years, the provide of the items has exceeded demand and the industry has entered the period of integration. With the boost of generating expenses of enterprises and the reduce of sales rates, the level of producing income has fallen down rapidly. Especially in the third quarter of 2008, affected by the international financial crisis, most of the enterprises suffered excellent losses. It will be difficult to boost the situation in 2009, and the chlor-alkali business will also enter the period of integration.
Affected by the economic crisis, those modest enterprises with short resources, low-end technologies, modest scales and extreme pollutions will progressively lose their competitive strengths beneath the stress of environmental protection and charges. Those leading chlor-alkali enterprises which have wealthy raw components such as coal, salt, coke, and calcium carbide and personal scaled and full cycling method routes, will turn out to be the pacemakers of the business in the monetary crisis.
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