NDRC: Severe overcapacity in China’s coal chemical industry, with total investment exceeding 1 trillion yuan
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The last edit to this post was made by jordan569 on 2013-1-6 at 21:50. National Development and Reform Commission: Severe overcapacity in China’s coal chemical industry; total investment has exceeded 1 trillion. December 30, 2009, 10:56. China Economic Net [Large Medium Small] [Print]. There is 1 comment in total. China Economic Net, Beijing, December 30 (Zhu Jinjin): At present, the trend of reckless construction of coal chemical projects in China is on the rise. Li Ningning, deputy director of the Industry Coordination Department of the National Development and Reform Commission, said at the fourth joint departmental press conference on \"Curbing overcapacity and redundant construction in certain industries to promote sustainable and healthy industrial development\" held this morning that, according to incomplete statistics, the total scale of coal-to-oil projects in China has exceeded 40 million tons, the total 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 has already surpassed 1 trillion yuan. It is understood that traditional coal chemical industry mainly includes four products: synthetic ammonia, methanol, coke, and calcium carbide. Due to China’s resource profile of abundant coal, limited oil, and scarce gas, traditional coal chemical industry has a long history of development in the country, with its main product outputs ranking first in the world for many years. However, in recent years, the high growth rate of production capacity in traditional coal chemical industries has outpaced demand, resulting in an increasing surplus of products and a continuous decline in the operating rates of these facilities. 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. According to the National Development and Reform Commission, the main reasons for overcapacity in the coal chemical industry are as follows: First, **the country has an abundance of coal but a shortage of oil and gas. The technology, equipment, and product markets related to traditional coal chemistry are already well-developed, and the investment required is relatively low, which makes this sector an attractive option for those seeking growth ； Secondly, international oil prices are volatile but generally on the rise. There have been advances in technologies for producing alternatives to petroleum products. In order to gain a competitive advantage and secure access to coal resources, some regions offer coal resources only in exchange for investment projects; others demand projects in order to obtain control over those coal resources. Modern coal chemical industries are highly sought after by investors ； Third, market information is distorted and not flowing properly; there is a lack of clear understanding of market globalization and the cyclical fluctuations in chemical products, leading to people following the trend and pursuing short-term gains ； Fourth, there is a one-sided focus on growth rates; there is an eagerness to expand operations and launch new projects, as well as to attract investment on a large scale, with an unrelenting pursuit of turning resource advantages into economic advantages. Li Ningning said at the meeting that China’s economy is currently in a critical period of stabilization and recovery. We need to deepen our understanding of the country’s basic conditions, its current stage of development, and the trends of economic globalization. We must fully recognize the dangers associated with overcapacity, redundant construction, and unplanned construction. It is necessary to better balance efforts to promote economic growth with those aimed at adjusting the economic structure. We should align our thoughts and actions with the decisions and plans set by the **** and the State Council, and truly transform the mode of economic growth. As we continue to prioritize promoting steady and rapid economic development, we must intensify structural adjustments, strictly control overcapacity, avoid redundant construction, and prevent unplanned construction. . Note $ # , $ $
There is no surplus in coal-to-oil and coal-to-olefins production
An important opinion from the National Development and Reform Commission was also overlooked: Shenhua’s coal-to-oil project has been in operation for over a decade; this year it produced only a little over 100,000 tons of gasoline and diesel. It is still a long way off from reaching its designed production capacity!
This post was last edited by wyj210 on 2009-12-31 at 13:01. Even though the Shenhua coal-to-oil project is set to start operating in ten years, it is not functioning stably at present; only about 100,000 tons of gasoline and diesel have been produced so far, and it is estimated that it will take another year or two before it can reach its full capacity. ”She said. Li Ningning emphasized that projects that violate the regulations must cease construction or production; if necessary, **the accountability system (the Interim Provisions on Holding Party and Government Leaders Accountable) will be applied. Those who violate these policies and cause significant losses or negative consequences will be held accountable and dealt with severely, in order to curb overcapacity. ”She said. Coal-to-oil production indeed suffers from overcapacity, and there is also an excess in oil refining capacity; the pace of some domestic projects in this field has slowed down. http://www.21cbh.com/HTML/2009-12-11/157384.html
Many things tend to rush in all at once. :loveliness:
Is there an overcapacity in coal-to-oil production? ? ? What about coal-based olefins? Why is there still such a large discrepancy in the demand data reports for olefins in the coming years
Well, whether it’s excessive or not depends on the price; have the prices of refined oil products decreased recently?
There are problems with this article. The coal-to-oil and coal-to-olefins projects planned might reach such a large scale, but in reality, not many of them actually get implemented. Everyone in this industry, the major corporations, knows exactly which projects have been launched. Where would 40 million tons of oil come from? Where did the 20 million tons of coal-based olefins come from? It’s very likely that the journalist wrote something without knowing the truth~~