Chemical industry faces increasing costs and reducing profit

The National Development and Reform Commission announced on June 19 that since July 1st, the nationwide sales price has increased by an average of 0.025 yuan per kilowatt-hour, with an average increase of 4.7%. The reporter learned from the interview on the 20th that the increase in electricity prices will have a greater impact on the oil and chemical industries. Experts also said that the rise in the price of energy products will accelerate the optimization of the industrial structure and help promote the application of energy-saving technologies.
The chemical industry is an energy-consuming industry, especially in industries such as chlor-alkali, calcium carbide, and yellow phosphorus, with a large proportion of electricity costs. For example, the average power consumption of caustic soda products in the chlor-alkali industry is about 2400 kwh, electricity accounts for about 50% to 60% of the production cost, and the average power consumption for the calcium carbide industry is about 3600 kwh, and electricity accounts for about 60% to 80% of the production cost. The average power consumption per ton of the yellow phosphorus industry is about 14,000 kwh, electricity accounts for about 70% of the production cost; the plastic products industry regards the level of processing machinery, and electricity accounts for about 15% to 30% of the production cost. The average price increase for this time is 4.7%, which means that the production cost of some chemical companies with large power consumption will even rise by more than 3%.
It is understood that except for some large chemical companies that own power plants, the increase in electricity prices has a greater impact on the profits of most chemical companies. According to Sun Weishan, secretary-general of the China National Association for Calcium Carbide Industry, the profits of the calcium carbide industry are already very low. Although prices are bullish, they are mainly affected by rising costs. The actual profit of 1 ton of calcium carbide is only 100 to 150 yuan. As a large consumer of electricity, the increase in electricity price will increase the toll cost by an average of 90 yuan. This has further reduced the profits of the calcium carbide companies and the industry is facing greater challenges.
At present, the domestic price of caustic soda is about RMB 3,300/ton. Although the prices in the previous period have risen, there is a tendency to weaken. The increase in electricity prices will increase the average cost per ton of caustic soda by RMB 60. The pressure on the company is not small.
Relevant experts said that the general increase in the price of energy products will create a linkage effect, which will increase the cost of the chemical industry. However, this will also accelerate the evolution of the industrial structure: eliminate backward production capacity, optimize the upgrading of industrial structure, and promote the application of some energy-saving technologies. For example, through the use of energy-saving technologies, the electricity consumption of tons of calcium carbide enterprises can be reduced by more than 150 kWh.
According to another report, the prices of electricity for residential use, agricultural production, and fertilizer production are temporarily not adjusted, and electricity prices in counties (cities) that are seriously affected by the earthquake disaster in Sichuan, Shaanxi, and Gansu are not adjusted.

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