At present, the price of liquid caustic soda continues to rise, and the production cost of solid caustic soda processing companies remains high. Although it remains at a relatively high price, the profit margin of the industry gradually narrows. At the same time, Inner Mongolia, Ningxia, Shaanxi and other places rely on local resources, policies, and other advantages. The new and expanded liquid caustic soda devices have a large capacity and a strong momentum. However, the local demand space is limited, and the problem of oversupply in the market is becoming increasingly prominent. In this context, solid-base exports have added a new phase of inspections. China's domestic sales of solid caustic soda have great pressure on domestic trade. According to the statistical analysis of China's chlor-alkali network, in recent years, the formation of China's caustic soda production capacity has shifted westward, and at the same time it has also accelerated the industrial layout of solid alkali. In Inner Mongolia, Ningxia, Shaanxi, and other places, the use of local resources, policies, and other advantages, liquid caustic soda devices grow rapidly, but the local market space is limited, changing the product form has become a new idea for the northwestern enterprises to find and develop the market. The caustic soda is easy to store and transport, so that large-scale large-scale caustic soda enterprises in northwestern China are all equipped with processing projects. At the same time, there are similar agents processing enterprises in the periphery, and their products can be exported to East China, South China, North China, and Central China. In other places, even foreign trade exports to landlocked countries such as Central Asia. The scale of solid caustic soda in the northwest region has been developing rapidly, which has had a huge impact on the old market pattern of domestic solid alkalis. In previous years, proteolytics in Shandong and Tianjin, which dominated the market price in South China, had a significant effect on the price of southern China, but the impact has gradually become smaller. With the increase in protocalycin production capacity in the northwest regions of Inner Mongolia, Ningxia, and Xinjiang, and the expansion of the market, the impact on prices has become increasingly apparent. However, the market for consumer bases in China's solid alkali is mainly concentrated in the areas of East China and South China. Its downstream industries are diverse. East China is dominated by the chemical fiber, printing and dyeing industries, and the downstream of southern China is relatively extensive. It is dominated by light industry, chemical industry, textiles, printing and dyeing, medicine, metallurgy and electric power. As the production bases of domestic solid alkalis are far away from consumer sites, logistics and transportation are an important circulation link. Except for enterprises with their own advantages, which can be transported by rail, most of the products rely on vehicular transport, and transportation costs increase with rising energy prices. In March of this year, China’s oil prices rose, and the transportation costs of enterprises were raised. Affected by the increase in costs, the pressure on Chinese solid-alkali processing companies was significantly higher, and they chose to reduce their production. The large-scale chlor-alkali enterprises equipped with solid-alkali processing facilities sold more liquid caustic soda. Mainly, China's supply of solid alkali supplies is in short supply. In terms of exports, starting in January 2012, China's solid-alkali exports added new inspection methods, resulting in changes in the export process of solid alkalis, which have an impact on the export market. The first is the increase in export costs of enterprises. The legal inspection will charge three-thousandths of the cost. According to the current export price of China's main port of US$590/ton, the average export cost per ton of solid-base will increase by 11 yuan. The second is the extension of export time. After the implementation of the inspection, the export time of China's solid alkali was delayed by about 15 to 20 days compared with the previous period. The arrival time is uncertain, and companies are afraid to sign their orders. However, the law inspection has ensured the quality of our protopine export products. According to rough statistics, the total capacity of China's solid caustic soda processing facilities was approximately 8.406 million tons in 2012. Among them, the chlor-alkali enterprises' own solid caustic soda processing equipment has 3.816 million tons, accounting for about 45% of the country's total processing capacity. There are a large number of domestic processing companies, and the number of companies with a production capacity of less than 50,000 tons is relatively large. From the perspective of the development of the solid alkali industry, its development has not formed scale and clustering. With the increasing pressure on domestic sales, the problems in the development of the solid alkali industry have become more prominent. Due to the large number of companies and the small scale of production, it is difficult for the protokali market to form a unified organism. The disorderly rise or fall in prices will cause the company and the entire industry to face high risks, resulting in the industry as a whole is effectively underemployed and idle capacity is too much. In addition, there is still a certain gap between China's technological level and the international advanced level. Although the domestic caustic soda production capacity has already reached a certain scale, the production capacity of a single set of equipment is difficult to reach the advanced level in foreign countries, and there are problems of high labor intensity, poor operating environment, low thermal efficiency, high energy consumption, and serious pollution. Production of raw materials, raw salt impurities, protopine products of different quality. The biggest difference between Tianjin and Shandong protopine with sea salt as raw material is that the alkali in Shandong tends to be industrialized by the masses, and its quality is uneven. Tianjin Alkali tends to produce high-quality pharmaceuticals and foods, but the cost is higher. Experts from the China Chlor-Alkali Industry Association believe that in order to truly crack down on the development of the industry, China's solid alkali product structure needs to be further adjusted and optimized to realize the development of the industry in the direction of refinement, applicability, diversification, and serialization.
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February 15, 2019