Coal chemical industry development "refueling" or the "crash brake"
2023-05-02 20:10:53
Recently, Kailuan Group's total investment of 8 billion yuan in Inner Mongolia Kailuan coal chemical recycling projects - "2 × 200,000 tons of ethylene glycol and 2 × 200,000 tons of coal tar hydrogenation" project in Ordos laid the foundation. Not only in Ordos, all parts of the country showed great enthusiasm for coal chemical projects.
The direct consequence of investing in the tropics is excess capacity. Among the six overcapacity industries announced recently, coal chemical companies are on the list. The data shows that at present, the excess capacity of coal chemical industry exceeds 30%. Coal chemical industry is considered to be an industry that extends the coal industry chain and develops deep processing. It has been encouraged by all levels of government for many years, but it is now listed among the ranks of overcapacity. Has the coal chemical industry developed into today's stepping on "accelerator" or stepping on "brake"?
The suppression of excess mainly refers to the traditional coal chemical industry, and modern coal chemical industry focuses on curbing its blind development. Because compared to the traditional coal chemical industry that has entered mature stage, modern coal chemical industry has only just started in China, and many are still in the demonstration stage. Excess is expressed directly through the price of the product. According to statistics, from July to December 2008, China's soda ash prices fell by 40%, yellow phosphorus prices fell by 41%, methanol prices fell by 46.5%, styrene butadiene rubber fell by 64.8%, and butadiene butadiene rubber dropped by 65.6%. Only some high-end products have a smaller decline.
Concomitant with overcapacity, the unreasonable structure of coal chemical industry began to deteriorate. "At present, there is a tendency to pay attention to the new projects that are launched and advance the elimination of backward production capacity." Xiong Bilin, inspector of the Industry Coordination Department of the National Development and Reform Commission, believes that: "The excessive production capacity of coal chemical industry has deep roots. Some local governments are heroes of GDP, and pursue one-sidedly. Expanding the scale, coupled with the lack of industry information disclosure and market analysis, especially when the coal chemical industry is generally optimistic about the local government, it is very easy to lead to 'one move up.'
In the investigation, it was found that a series of adverse consequences brought about by excess production capacity are well understood by everyone. For example: a huge waste of social resources, pollution of the environment, and excessive dependence on economic growth in foreign markets, leading to increased risk of economic operations... If left unchecked, it will eventually lead to the collapse of enterprises in batches, unemployment of groups, increase of non-performing assets of banks, etc. Serious consequences. However, it is difficult for local governments and enterprises to accurately grasp the staged and structural characteristics of the excess coal chemical industry.
Despite repeated demands by the government for regulation, local governments still show extraordinary investment enthusiasm. Taking coal-based oil as an example, with the completion and commissioning of coal-to-oil projects by super coal companies such as Shenhua, some coal-rich regions have invested in building and expanding coal-to-oil projects. In this regard, Zhang Yong, director of the policy research department of the China Coal Industry Association, said that China's development of coal-to-oil production is still only due to technical and strategic considerations. As for a series of issues such as the environmental costs of coal-to-oil production, the use of water resources, and the risks that amplify operations, there is still a need for comprehensive demonstration and consideration.
In any case, the surplus of coal chemical industry is an indisputable fact. On August 26 this year, the State Council executive meeting decided to include coal chemical industry as an industry that focused on strengthening guidance. This is the first time that the country has included coal chemical industry in the ranks of overcapacity and structural adjustment. The competent government departments will comprehensively use laws, economics, finance, technology, and necessary administrative means to carry out rectification and adjustment, including raising the threshold for technology, capital, and environmental protection.
Excessive governance, "blocking" is important, but "sparse" must not be ignored. Eliminating outdated production capacity involves various issues such as the employment of employees, the conversion of enterprises, and the solvency of debts. The state must, while introducing a series of policies and measures, be sure to combine the actual conditions and do a good job in related supporting work. Only when the blockage is blocked and both ends are smooth, the excess contradictions can be truly resolved. Otherwise, even if the surplus is suppressed, the contradictions will exist and behave in other ways.
The direct consequence of investing in the tropics is excess capacity. Among the six overcapacity industries announced recently, coal chemical companies are on the list. The data shows that at present, the excess capacity of coal chemical industry exceeds 30%. Coal chemical industry is considered to be an industry that extends the coal industry chain and develops deep processing. It has been encouraged by all levels of government for many years, but it is now listed among the ranks of overcapacity. Has the coal chemical industry developed into today's stepping on "accelerator" or stepping on "brake"?
The suppression of excess mainly refers to the traditional coal chemical industry, and modern coal chemical industry focuses on curbing its blind development. Because compared to the traditional coal chemical industry that has entered mature stage, modern coal chemical industry has only just started in China, and many are still in the demonstration stage. Excess is expressed directly through the price of the product. According to statistics, from July to December 2008, China's soda ash prices fell by 40%, yellow phosphorus prices fell by 41%, methanol prices fell by 46.5%, styrene butadiene rubber fell by 64.8%, and butadiene butadiene rubber dropped by 65.6%. Only some high-end products have a smaller decline.
Concomitant with overcapacity, the unreasonable structure of coal chemical industry began to deteriorate. "At present, there is a tendency to pay attention to the new projects that are launched and advance the elimination of backward production capacity." Xiong Bilin, inspector of the Industry Coordination Department of the National Development and Reform Commission, believes that: "The excessive production capacity of coal chemical industry has deep roots. Some local governments are heroes of GDP, and pursue one-sidedly. Expanding the scale, coupled with the lack of industry information disclosure and market analysis, especially when the coal chemical industry is generally optimistic about the local government, it is very easy to lead to 'one move up.'
In the investigation, it was found that a series of adverse consequences brought about by excess production capacity are well understood by everyone. For example: a huge waste of social resources, pollution of the environment, and excessive dependence on economic growth in foreign markets, leading to increased risk of economic operations... If left unchecked, it will eventually lead to the collapse of enterprises in batches, unemployment of groups, increase of non-performing assets of banks, etc. Serious consequences. However, it is difficult for local governments and enterprises to accurately grasp the staged and structural characteristics of the excess coal chemical industry.
Despite repeated demands by the government for regulation, local governments still show extraordinary investment enthusiasm. Taking coal-based oil as an example, with the completion and commissioning of coal-to-oil projects by super coal companies such as Shenhua, some coal-rich regions have invested in building and expanding coal-to-oil projects. In this regard, Zhang Yong, director of the policy research department of the China Coal Industry Association, said that China's development of coal-to-oil production is still only due to technical and strategic considerations. As for a series of issues such as the environmental costs of coal-to-oil production, the use of water resources, and the risks that amplify operations, there is still a need for comprehensive demonstration and consideration.
In any case, the surplus of coal chemical industry is an indisputable fact. On August 26 this year, the State Council executive meeting decided to include coal chemical industry as an industry that focused on strengthening guidance. This is the first time that the country has included coal chemical industry in the ranks of overcapacity and structural adjustment. The competent government departments will comprehensively use laws, economics, finance, technology, and necessary administrative means to carry out rectification and adjustment, including raising the threshold for technology, capital, and environmental protection.
Excessive governance, "blocking" is important, but "sparse" must not be ignored. Eliminating outdated production capacity involves various issues such as the employment of employees, the conversion of enterprises, and the solvency of debts. The state must, while introducing a series of policies and measures, be sure to combine the actual conditions and do a good job in related supporting work. Only when the blockage is blocked and both ends are smooth, the excess contradictions can be truly resolved. Otherwise, even if the surplus is suppressed, the contradictions will exist and behave in other ways.
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