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This post was last edited by melao on 2011-12-10 22:43. “There are an enormous number of new sulfuric acid production projects this year; the association recommends that no new such projects be launched for 5 years, but no companies are listening and continue to build them. ”Qi Yan stated that the association proposed in the 12th Five-Year Development Plan for the sulfuric acid industry that, in principle, no new sulfur-based or pyrite-based sulfuric acid production facilities should be built within 5 years. At the same time, sulfur-based and pyrite-based sulfuric acid production plants with a capacity of less than 100,000 tons will be phased out. “But the reality is that the small ones cannot be phased out, and the large ones are still being launched. And each has its own reasons. ”Qi Yan said that when it comes to producing acid from pyrite, China lacks iron resources; some small pyrite-related enterprises are doing well currently, and local governments rely on them for tax revenue – so why would they want to phase them out? Another example is the production of sulfuric acid from sulfur. Many enterprises along the coast are currently building large-scale sulfur-based sulfuric acid production plants, mainly to use sulfuric acid vapor for power generation. It’s not possible to prevent its use either; coal is in short supply and its price is very high, so it’s better to buy sulfur for power generation. In addition, regions such as Guizhou and Hubei are building large-scale phosphate compound fertilizer plants, along with corresponding large-scale sulfuric acid plants.
This problem of overcapacity has been identified for some time now. The sulfuric acid industry has been quite prosperous in the past two years, yet sales of sulfuric acid, its main product, have been on a downward trend. The market prospects are not optimistic at present; China’s overall economic situation is not good, and the coming winter will be long.
In the second half of this year, the sulfuric acid market was weak; the ex-plant price of sulfuric acid dropped from over 560 yuan to less than 400 yuan. New projects are being launched, and the market is set to see changes by 2012; To find out who is actually losing, it’s inevitable that the big fish will eat the small fish, and the small fish will eat the shrimps ;
It would be great if the shuffling could really happen quickly; I’m looking forward to it