NDRC: Excess capacity and reckless construction in the coal chemical industry are on the rise

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NDRC: Overcapacity and reckless construction in the coal chemical industry are on the rise December 30, 2009, 10:52 China News Network [Large Medium Small] [Print] 0 comments so far. According to China News Service on December 30, the NDRC and other relevant departments held the fourth joint press conference on \"curbing overcapacity and redundant construction in certain industries and promoting the sustainable and healthy development of these sectors.\" Li Ningning, deputy director of the Industry Department of the National Development and Reform Commission, said at a press conference that in 2009, the new capacity for coke production was around 30 million tons, and investment in coal chemical industries exceeded 1 trillion yuan. The problems of overcapacity and reckless construction in this sector have been on the rise. Li Ningning said that in recent years, the capacity of traditional coal chemical industries has been growing at a rapid pace, exceeding demand; as a result, there has been an increasing surplus of products, and the operating rates of these facilities have been declining. In 2008, the capacity utilization rate for coke across the country was around 80%, while it was about 68% for calcium carbide and 53.6% for methanol. This year, due to the sharp increase in imports, the operation rate of methanol production dropped further, falling below 44% and reaching around 42%. According to incomplete statistics, the new coke production capacity in 2009 was around 30 million tons ； Currently, there are 31 calcium carbide production projects under construction across the country, with a total capacity of 7 million tons ； There are 25 methanol projects with a total production capacity of 8.6 million tons; once all these projects come online, it will further exacerbate the problem of overcapacity. In addition, a number of traditional coal chemical projects have also been planned in various regions. With oil prices fluctuating yet generally on the rise, countries around the world have adopted various important measures to address the oil crisis; some have focused on research and development while others have pursued industrialization. However, modern coal chemical projects require high one-time investments, involve complex technical equipment, and consume large amounts of resources. At present, most of them are in the stages of development research, experimental verification, and industrial demonstration, and do not yet have the conditions for large-scale construction. At present, in regions of our country where coal resources are relatively abundant, some are planning to build modern coal chemical projects in the near future, regardless of technological advancements, the maturity of the industry, and the local construction conditions. According to incomplete statistics, the total scale of coal-to-oil projects reported from various regions now exceeds 40 million tons, the total production capacity for coal-to-olefins is 20 million tons, and the output of coal-to-natural gas amounts to 25 billion cubic meters. The total investment in these projects, based on the investment and budget for the demonstration projects, has already exceeded 1 trillion yuan. This trend has been rising continuously. (Compiled from the live text broadcast on China.com)