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Soda Ash Industry Overcapacity Intensified By Lanbo Jiang

  in Business | Published 2010-05-05 02:58:18 | 178 Reads | Unrated

Summary

In 2009, the financial crisis and the dual pressures of excess production capacity, China's soda ash industry, heavy losses losses of large enterprises up to a billion dollars, mid sized losses of up to thousands of yuan, the small business losses are over one million yuan With the advent of the ne w year, the financial crisis on China's soda ash industry, adverse impact is gradually decreased, but industry wide overcapacity problem still worse

Full Content

In 2009, the financial crisis and the dual pressures of excess production capacity, China's soda ash industry, heavy losses losses of large enterprises up to a billion dollars, mid sized losses of up to thousands of yuan, the small business losses are over one million yuan. With the advent of the new year, the financial crisis on China's soda ash industry, adverse impact is gradually decreased, but industry wide overcapacity problem still worse. Therefore, China Soda Industry Association vice president and secretary general Wang Xiling, said in an interview, and strictly control the productio
n capacity and maintain market stability soda ash industry is facing this year's top priority.

According to Wang Xiling introduced in 2009, China's soda ash production capacity has reached 24 million tons, output is expected to more than 19 million tons, the domestic demand for soda ash is not expected to more than 17 million tons and export volume of more than 200 million tons, throughout the year, five million tons production capacity idle. "Even if there is no financial crisis, the soda ash industry, the problem of excess production capacity will be completely exposed in 2009." Wang Xiling, said in 2010 the domestic soda ash industry, new capacity will be nearly 200 million tons, while demand is also the most optimistic estimates of the about 18 million tons and export volume will be 200 million tons, soda ash industry overcapacity situation will worsen.

Wang Xiling analysis, soda ash exports this year will be further constrained, export volume is expected to be reduced by 30 million tons. He told reporters, October 6, 2009, Indian Ministry of Finance issued the final ruling notice originating in China decided to impose a 20% soda ash special safeguard measures for tax, tax period from April 20, 2009 to 2010 4 19. The Indian side will also after the expiry of the current round of special safeguard measures to apply for an extension, which will lead to this year, China exported to the Indian soda ash substantially reduced.

Turkey, an annual output of 1 million tons of soda plant has also been put into production, because of its close distance from the Middle East, soda ash exports to China posing a great threat in the Middle East. As the world's first soda ash export country after the United States in the outbreak of the financial crisis began, and soda ash exports ranked second in the world, China launched a full fledged competition, the United States to take measures to cut prices to expand market share, will also result in China's exports this year's Soda a greater impact. In addition, the European Solvay companies joined the battle for the Asian market in 2009, began a large scale exports to Asia soda ash.Wang Xiling said that this year with the full recovery of the national economy and the continued growth of GDP, the domestic soda ash consumption will increase more than in 2009, the average selling price will be higher than in 2009. "If we can properly control the total amount of losses in the whole industry will be much improved; and if controlled properly, the possibility of some loss making enterprises continue to great."

To this end, Wang Xiling pointed out: "soda ash industry, this year's idea is to control the amount of work, reduce losses, as far as possible to 80% capacity to play around in order to ensure a basic balance between supply and demand. This will require industry support and cooperation of large enterprises. Association hope that large scale backbone enterprise in which a good location (near the energy, raw materials and convenient transportation origin) and enterprises as well as equipment, technology and management with high levels of three types of enterprises are able to consciously control the production capacity, maintain the no loss and have a small amount of profit the same time, price stability conducive to the survival of the fittest industry. "

According to Wang Xiling introduction, soda ash associations, in the drafting of a "soda ash industry, access conditions," (draft), production layout plans, project scale, energy saving emission reduction, product quality, many aspects such as soda ash project for new and existing enterprises to improve Soda standards in order to curb excess production capacity of soda ash industry, and continued expansion. At present, the combination of soda ash Association is up across the country summarizes the views of the "soda ash industry, access conditions" for further modification and improvement.

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