China Forms a "High Energy Prices" Chlor-alkali Is Facing Both Internal and External Challenges
2018-06-25 22:01:43
Recently, it was learned from the China Chlor-Alkali Association that the import volume of polyvinyl chloride has soared since the beginning of this year, which has greatly impacted the domestic market and made the domestic chlor-alkali industry, which was already affected by the international financial crisis, worsen. Experts called for the anti-dumping of polyvinyl chloride should take into account the differences in energy taxation factors at home and abroad, based on the state's current energy resources policy standards, beware of foreign products take advantage of.
According to analysis by industry experts, in February of this year, the domestic PVC import volume soared by about twice as compared with the same period of last year, and the import volume reached one-fourth of the consumption in the same period in the country. The impact of imported PVC on the national industry must arouse enough attention. The basic reason for stimulating the influx of foreign sources of supply is undoubtedly the price difference. In February, the average domestic PVC market price was 6200-6400 yuan per ton, while in the same period the foreign PVC CIF was US$660-680 per ton. The discounted renminbi price is about 5,700 yuan per ton. This is mainly due to the fact that international crude oil prices have fallen by 60% to 70% since July last year. The price of coal and electricity for domestic production of polyvinyl chloride has basically not fallen, and an "energy price highland" has formed. Compared with PVC, a foreign oil and gas technology route, the past cost advantage of domestic products has become a cost disadvantage. According to an executive from Tangshan Sanyou Chlor-alkali Co., Ltd., the company currently produces about 1,000 yuan per ton of PVC. However, in order to balance the production of chlorine, the PVC plant has to run at a loss.
Experts remind that due to the severe situation of China's energy-saving emission reduction and industrial restructuring, the Chinese government may continue to maintain a substantial increase in energy consumption tax and resource tax, and the current phenomenon of “energy price highland†formed in China may not disappear within a certain period of time. This is a severe test for domestic high-energy chlor-alkali industries, forcing the domestic chlor-alkali industry to make great efforts to reduce energy consumption and adjust structure. At the same time, relevant state departments should also give more support to the industry in terms of anti-dumping. At present, the Ministry of Commerce is conducting an on-going review of polyvinyl chloride anti-dumping sunsets. Experts suggest that domestic and foreign factors should be considered in the taxation of energy products. The energy low tax policy in some countries runs counter to global ecological protection.
According to analysis by industry experts, in February of this year, the domestic PVC import volume soared by about twice as compared with the same period of last year, and the import volume reached one-fourth of the consumption in the same period in the country. The impact of imported PVC on the national industry must arouse enough attention. The basic reason for stimulating the influx of foreign sources of supply is undoubtedly the price difference. In February, the average domestic PVC market price was 6200-6400 yuan per ton, while in the same period the foreign PVC CIF was US$660-680 per ton. The discounted renminbi price is about 5,700 yuan per ton. This is mainly due to the fact that international crude oil prices have fallen by 60% to 70% since July last year. The price of coal and electricity for domestic production of polyvinyl chloride has basically not fallen, and an "energy price highland" has formed. Compared with PVC, a foreign oil and gas technology route, the past cost advantage of domestic products has become a cost disadvantage. According to an executive from Tangshan Sanyou Chlor-alkali Co., Ltd., the company currently produces about 1,000 yuan per ton of PVC. However, in order to balance the production of chlorine, the PVC plant has to run at a loss.
Experts remind that due to the severe situation of China's energy-saving emission reduction and industrial restructuring, the Chinese government may continue to maintain a substantial increase in energy consumption tax and resource tax, and the current phenomenon of “energy price highland†formed in China may not disappear within a certain period of time. This is a severe test for domestic high-energy chlor-alkali industries, forcing the domestic chlor-alkali industry to make great efforts to reduce energy consumption and adjust structure. At the same time, relevant state departments should also give more support to the industry in terms of anti-dumping. At present, the Ministry of Commerce is conducting an on-going review of polyvinyl chloride anti-dumping sunsets. Experts suggest that domestic and foreign factors should be considered in the taxation of energy products. The energy low tax policy in some countries runs counter to global ecological protection.
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