The investigation of the impact of a new round of electricity price increase on chemical companies

After experiencing a power shortage in most parts of the country, the National Development and Reform Commission announced on May 30 that since June 1st, non-residential electricity prices in 15 provinces and cities have been raised, with an average increase of about 2 cents per kilowatt-hour.

The 2 cents seem unremarkable, but what does it mean for the oil and chemical industry, which consumes 12% of the country's annual energy consumption? The CCIN reporter of this newspaper conducted an interview with related companies.

Not only does the cost increase drive many areas of the chemical industry, electricity is not just a source of power, but also a raw material for its production. Therefore, the biggest impact of this increase in electricity prices on chemical companies is direct cost increases.

Wang Yingxian, chairman of Shanxi Xingyin Shixing Chemical Co., Ltd., told CCIN: “We are a calcium carbide manufacturing company. The cost of electricity from calcium carbide accounts for 70% of the total cost of production. After the country raised the price, it is only in the current industry. Calculating the average unit consumption level, the direct cost increase per ton of product is around RMB 90. According to our production of 60,000 tons, it is RMB 5.4 million in one year. If calculated according to the production of calcium carbide in 2010, the calcium carbide industry in Shanxi Province will increase. The cost is up to 46.8 million yuan."

Wang Shoufa, chief engineer of Jiangxi Longlong Industry Co., Ltd., said: “The Jiangxi Provincial Development and Reform Commission has just issued a document, which will increase 2.5 cents per kilowatt-hour of electricity for large-scale industrial production such as chemical production. This way, our company will spend 80 more a month. Millions of yuan, a year is nearly 10 million yuan, the impact is not small."

The chlor-alkali industry in downstream industries of calcium carbide is also a typical “electricity tiger”, and its sensitivity to electricity prices is no less than that of calcium carbide.

Mao Congqi, vice minister of Sinopec's Baling Petrochemical Equipment and Energy Department, said that the company's electricity consumption for caustic soda units is about 2,600 kWh/ton. After the increase in electricity prices, the cost per ton of products increased by about 52 yuan. Although they have two captive power plants, they still need to purchase about 200 million kwh of electricity each year. This increase in electricity prices will increase the cost of electricity for enterprises by about 4 million yuan.

Haohua Aerospace Chemical Co., Ltd. is an important calcium carbide process polyvinyl chloride production base in central China. Sun Zhenfeng, the general manager, told CCIN reporter: “If we calculate the standard of 1.67 cents per kWh in Henan, the cost of PVC will increase by nearly RMB 140 per ton. This is not a small problem for chlor-alkali producers. digital."

Relevant person in charge of energy dispatching department of Sichuan Jinlu Resin Co., Ltd. said that although Sichuan has the lowest price adjustment rate, only 0.52 cents/kWh, they still need to spend more than 300,000 yuan per month, which will cause no small pressure on production costs. .

The situation of chemical fertilizer companies is also not optimistic.

Liuhua Group is a large fertilizer manufacturer in Gansu. The company’s propaganda minister, Duo Dusheng, told CCIN that even if the prices of other raw materials remain unchanged, the company’s monthly electricity price will increase by 1.08 million yuan, and the annual production cost will increase by about 13 million yuan.

Hebei Yangmei Zhengyuan Chemical Industry Group Co., Ltd. is the largest urea production enterprise in Hebei Province. Zhang Lijun, vice chairman of the group, told CCIN: “They have received notification that the 2.97 points per kilowatt-hour increase will increase the cost per ton of urea electricity price. 40 yuan, plus other cost increases, it is estimated that the cost of urea per ton will increase by 70 to 80 yuan, and we will increase the cost by 4 to 5 million yuan per month."

Wu Guozhou, director of the enterprise management department of Hubei Saning Chemical Industry Co., Ltd., told the CCIN reporter that the current annual electricity demand is about 1.3 billion kwh, and the electricity cost accounts for 23% of the ammonia production cost. The increase in electricity prices directly increased production costs by 26 million yuan, and the proportion of electricity costs rose to 34.4%.

The CCIN reporter learned from the interview that the concern raised by the chemical companies regarding this increase in electricity prices was not just a direct cost increase. They are even more disturbed by the operating pressures caused by the rise in prices of other raw materials triggered by the increase in electricity prices and the poor conduct of the industry’s prices.

According to Liu Xiangming, general manager of Shaanxi Fugu Tianqiao Calcium Carbide Co., Ltd., the price of electricity is raised by 0.02 yuan/kWh, and the cost of ton calcium carbide will increase by about 70 yuan. If coal, white ash, and transportation companies increase the price of products and services at the same time due to rising electricity prices, The comprehensive cost of calcium carbide will also increase, and the operating pressure of the company will be even greater.

The concern of Jiagenzhu, chairman of Shanxi Tianze Coal Chemical Company, is that according to the usual practice, the increase in electricity price will inevitably push up the price of coal and push up the price of raw materials. Recently, some experts said that the increase in the price of electricity by 1 cent will always cause the price of coal to rise by forty to fifty yuan. This increased cost is ultimately passed on to the fertilizer company.

Zhu Bingli, deputy general manager of Shaanxi Qinling Chemical Fertilizer Corporation, also told CCIN that the increase in electricity price by 0.02 yuan/kWh did not seem to be large, but according to past experience, after the price of electricity rose, coal, catalyst, transportation, and packaging bags The price of such products will increase, and the overall cost of the company will increase significantly. In the case of excessive fertilizer and methanol production capacity, the rising costs of this part can hardly be passed on by increasing product prices. Therefore, after the electricity price rises, the company's life will be even more sad.

Zheng Xiaohong, president of Jiangxi Activated Carbon Association and general manager of Jiangxi Yushan Shanqing Activated Carbon Co., Ltd., also said with concern that rising electricity prices will bring about a series of price increases, such as coal prices, water prices, and raw materials. Wood processing is the main raw material industry for activated carbon. Upgrading of electricity prices will directly lead to the rise of wood chips raw materials, adding new costs to the wood activated carbon industry.

Relevant person in charge of the energy dispatching department of Jinlu Resin Company stated that for the chemical companies in the disaster-stricken areas in Sichuan Province, they have just experienced the impact of the 5.12 Wenchuan earthquake and have not fully recovered to the level before the earthquake. The company is a calcium carbide producer of PVC. With the adjustment of electricity prices, the cost of calcium carbide producers will certainly rise. If these companies pass the cost pressure to the downstream calcium carbide PVC manufacturers, they will also have an impact on them. .

The CCINR reporters found that the price of electricity was higher than the power cut. In the interview, CCIN reporters found that although companies have complained about the increase in electricity prices, there is no shortage of fears. However, worrying about the return of concerns, the interviewed companies have stated in unison that the price increase is always higher than the price increase. Electricity is limited.

Liu Xingxu, chairman of Henan Xinlianxin Chemical Fertilizer Co., Ltd., believes that “the rise in electricity prices will not immediately lead to the closure of companies’ parking, and its impact will only be reflected in the market. The “temporary” behavior of power cuts is even more damaging. In addition, chemical production is a process-type operation, which will increase fixed costs, depreciation and interest expense sharing, and will affect the profits of enterprises.”

Yang Yuhua, executive vice president of Shanxi Haobao New Energy Group, also said that limiting the use of electricity to the chemical industry could not guarantee the quality of products in this continuous production industry, and the product sales channels were not smooth, thus reducing the credibility of the company. More importantly, the limited power of chemical companies has caused the machine to shut down abnormally, which may result in the burning of motors and circuit boards, as well as wasting a lot of power.

Wang Yingxian also explicitly selected price adjustments. He said: "I can still make normal electricity prices. To limit electricity, companies can't stand it."

Lu Yibing, assistant general manager of Guizhou Crystal Group Co., Ltd., believes that the power price increase can be digested by scientifically using energy, increasing product output, and saving energy and reducing consumption, while power cuts affect the production load. As far as the Crystal Group’s chemical plants are concerned, at least one million yuan will be lost for every parking lot.

Zhu Bingli told the CCIN reporter that frequent power cuts will bring great security risks to chemical plants that have continuous operation requirements. Although rising electricity prices will raise the production costs of enterprises, if we accelerate the elimination of outdated production capacity and can effectively alleviate the contradiction of supply of chemical products in excess of demand, then when the market supply and demand balance, enterprises can increase the cost, Conducting out by increasing the price of the product will not be hurt.

A person in charge of the Gansu Xuejing Biochemical Company's Business Management Division said that the company’s citric acid fermentor must run for 24 hours. During the operation, the fermentation broth must be provided with wind energy by an air compressor to ensure the growth of fermentation broth species, thereby increasing the fermentation acidity. Ultimately increase production. Once power cuts are applied in the middle of the road, the yield will decline due to the slow growth of the strains.

Liu Qianbo, director of the office of Hubei Qianjiang Jinhua Run Chemical Fertilizer Co., Ltd., agrees. He told CCIN reporter that chemical fertilizer production has characteristics such as high temperature, high pressure, and high continuity. Therefore, power supply stability is very important. Whether from the perspective of safety or from the perspective of stable production, fertilizer companies should not be subject to power cuts.

Zhang Lijun said that compared with the increase in electricity prices, the impact of power cuts is even greater. The increase in electricity price can be increased, and the increase in cost can eventually be passed on to products. However, power cuts not only affect the output of the company's products, but also the low-load operation of the production system will affect the normal use of the equipment.

Huang Guangming, general manager of Jiangxi Guixi Chemical Fertilizer Co., Ltd., said: “At present, many companies are being cut off from power restrictions, enterprises have to reduce the load or even stop production. The contracts that have been signed cannot be fulfilled, seriously affecting the normal production and efficiency of enterprises. To increase the tariff, fertilizer companies prefer to choose price adjustments, but hope to ensure the power supply."

Li Yongcong, the production minister of Jiangxi Jiangwei Hi-Tech Co., Ltd., said that now the situation is worse, electricity prices have risen, power cuts are still being implemented, and companies need to take a double blow.

Restricting high energy consumption cannot rely on the fact that the National Development and Reform Commission has clearly stated that it is intended to curb the development of high-energy-consuming industries when explaining the reasons for this increase in electricity prices. However, CCIN reporters learned from the interview that although many people agree with this view, some people are skeptical that this may not be achieved.

Sun Zhenfeng said: “Although the increase in electricity prices will bring greater pain to chlor-alkali enterprises, we fully agree with the price increase, because this really leverages the market's leverage to eliminate a group of energy-intensive and inefficient companies. It is a bittersweet medicine. "He said that China still has 5 million tons of diaphragm soda production capacity. Under the boost of this electricity price increase, these production capacity will exit the market stage sooner."

There are quite a few companies who hold this view.

Lu Yibing believes that this increase in electricity prices will increase the difficulty of production and operation of some traditional chemical products and low-value-added products, and will have a positive inhibitory effect on some excessively developed high-energy-consuming industries.

Liu Xingxu believes that China now has excess nitrogen fertilizer production capacity. Since the tariff adjustment is beneficial to the elimination of outdated production capacity and environmental protection for energy conservation and emission reduction, it is a good policy and should certainly be championed. No longer can we use preferential policies to protect backward production capacity.

Zhu Bingli said that from the perspective of adjusting and optimizing the industrial structure and accelerating the elimination of backward production capacity, the rising prices of resources and energy products are conducive to energy-saving emission reduction and industrial restructuring. Taking only synthetic ammonia as an example, older plants using fixed-bed gasifiers are mostly small-scale and use electric drives, resulting in a ton of synthetic ammonia that consumes 1,400 kWh. Modern large-scale ammonia plants, using steam turbine drive motors, consume only 500 to 600 kWh of ammonia per ton. Before the price of electricity rose, the tons of ammonia produced by small-scale enterprises accounted for 270-240 yuan more than the electricity charges of large companies. As soon as the price of electricity rises, the greater the gap. Therefore, after this increase in electricity prices, some small businesses may completely stop production. Other companies may be determined to implement energy-saving technological transformations or build cogeneration facilities. Either way, it will reduce the average national energy consumption.

There are also many people in the industry who say that the effect of rising electricity prices is limited.

Wang Jianwu, general manager of Shanxi Jinfeng Coal Chemical Company, said in an interview with CCIN reporters that the increase in electricity prices and the increase in corporate costs have affected many companies. However, on the other hand, if a fertilizer company wants to make more profits to offset the price increase, it will increase its output so that the company will use more electricity. From this perspective, the increase in electricity prices does not reduce the electricity consumption of enterprises, but only increases the production costs of enterprises. I am afraid that the goal of limiting excessive development of energy-intensive industries will not be immediate.

Zhang Lijun believes that since high energy consumption projects can be launched, it shows that there is demand on the market, and products should be regulated by the market rather than relying solely on electricity prices.

Jia Qingming, Minister of Production of Guizhou Kaifeng Group, and Wang Anzhen, General Manager of Production Center of Shandong Shikefeng Chemical Co., Ltd. believe that this measure can control excessive development of high energy-consuming industries in the short term, but in the long run, it will not reach the high limit. The purpose of the energy-consuming industry, on the contrary, will push up prices, which is not conducive to social stability and harmonious development.

Li Shan, Production and Management Department of Shandong Hongri Akon Co., Ltd. believes that a considerable part of the products of high energy-consuming companies still have some profit margins. In the case of an increase in electricity prices, they will adopt measures such as expansion and transformation to increase the output of products and expand the scale to reduce costs and to survive. Some high-energy-consuming enterprises can make up for the rising price of electricity by increasing the sales price of the product. At the same time, they can also digest the rising price of electricity through technological transformation, energy conservation and consumption reduction. Therefore, to control high-energy-consuming industries, we must rely on the state to make fewer approvals and seize the source.

Li Yong-chong believes that in the event that the national electricity price is not uniform, it is difficult to limit the increase in electricity prices to limit the development of high-energy-consuming industries. He said that the implementation of the basic electricity tariffs in northeastern Yunnan is an example. For example, a company has 1 10,000 kVA transformer, which means that it needs no electricity, and it has to pay the electricity sector an annual basic electricity fee of 280,000 yuan. The government of many regions in the west has implemented power prices for enterprises. One kilowatt-hour is at least 0.2 yuan lower than that of us, and the rise of two cents in the district does not restrict them at all.