Double control power limit, enterprises reduce production by 90%! The price will rise again!

Recently, the National Development and Reform Commission directly named 9 provinces and regions at a regular press conference: Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi and Jiangsu. The information of ultra high power Graphite electrode products. In the first half of the year, the year-on-year energy consumption intensity did not decrease but increased! In addition, the reduction rate of energy consumption intensity in 10 provinces has not met the progress requirements, and the national energy-saving situation is very serious.

According to “the first half of 2021 regional energy consumption of the double control target completion barometer” issued by the National Development and Reform Commission, Guangdong, Fujian, Yunnan, Jiangsu, Zhejiang, Anhui, Sichuan and other 12 regions showed a severe situation in terms of energy consumption reduction and total energy consumption, which means that more than half of the provinces failed to achieve the "double control" target in the first half of the year.

For the 9 regions under its jurisdiction where the energy consumption intensity does not decrease but increases, this year suspended the energy-saving review of "two high" projects other than major projects planned by the state, and urged all localities to take effective measures to ensure the completion of the double control goal of energy consumption throughout the year, especially the goal of reducing energy consumption intensity. After the release of the document, many regions with performance warnings took substantive measures to achieve the annual target.

• Yunnan: the output of industrial silicon and yellow phosphorus industries has been reduced by 90%.

  Yunnan is one of the resource-rich provinces in China. The chemical industry has become one of the pillar industries of Yunnan's industrial economy, with the production capacity of yellow phosphorus accounting for more than 40% and that of silicon 20% in China. By the end of 2020, there were 346 chemical industrial enterprises above designated size in the province.

  According to the Notice on Double Control of Energy Consumption issued by Yunnan Provincial Leading Group office of Energy Conservation work, the average monthly output of yellow phosphorus production line from September to December shall not exceed 10% of the output in August (i.e. 90% output reduction); The average monthly output of industrial silicon enterprises shall not exceed 10% of the output in August (i.e. 90% output reduction); Among the four industries of fertilizer manufacturing, basic chemical raw material manufacturing, coal processing and ferroalloy smelting, enterprises whose energy consumption per 10,000 yuan of added value is higher than the average level of the industry shall adopt key enterprise energy consumption control measures. Among them, enterprises 1-2 times higher than the average shall be limited to 50% and enterprises 2 times higher than the average shall be limited to 90%.
• Yunnan Province requires to focus on petrochemical, chemical, coal chemical, iron and steel, coking, building materials, nonferrous metals and other industries, establish a "two high" project list management system, to eliminate a number of inefficient and backward production capacity, actively guide enterprises to promote green and low-carbon production, effectively promote industrial transformation and upgrading, and  improve the quality and efficiency of development.

• Jiangsu: the operating rate of soda enterprises may decrease by 20%.

  At present, there are 14 chemical parks and 15 chemical concentration areas in Jiangsu Province, which is known as the "great power of Jiangsu". By the end of December 2020, there are more than 2000 chemical enterprises in Jiangsu Province.

  The double control of energy consumption in Jiangsu is under overweight supervision, and has launched a special energy-saving monitoring campaign for enterprises with annual energy consumption of more than 50,000 tons in 2021. The scope of this special energy-saving supervision includes 323 enterprises with an annual comprehensive energy consumption of more than 50,000 tons of standard coal, 29 "two high" projects with a comprehensive energy consumption of more than 50,000 tons of standard coal, and the "two high" projects with a stock of more than 5000 tons of standard coal put into operation since 2020 (the task list is issued separately). It involves petrochemical, chemical, coal chemical, coking, steel, building materials, nonferrous metals, coal power, textile, papermaking, wine making and other industries.

  Affected by this, some soda enterprises in Jiangsu have planned to reduce production in September, and the operating rate may decrease by 20%. The soda production capacity of the whole Jiangsu Province accounts for 17.4% of the total domestic production capacity, which makes the soda price with gap expectation continue to be strong. The second and third quarter is the traditional overhaul season of soda, with obvious reduction in supply. In addition, irregular production and power restrictions and overweight of environmental protection factors have greatly reduced the product supply.

• Inner Mongolia: no more approval of PVC, methanol, ethylene glycol and other new capacity projects.

  The chemical industry is a pillar industry and traditional advantageous industry in Inner Mongolia Autonomous Region. A multi category industrial system has been formed, including coking, chlor alkali, modern coal chemical industry and fine chemical industry. The output of important bulk products such as methanol, polyvinyl chloride (PVC) and polyolefin resin ranks among the top in China. At present, Inner Mongolia Chemical Park (concentrated areas), a total of 58, and hundreds of chemical enterprises. The proportion of energy and raw material industries and industries with high energy consumption and high emission in Inner Mongolia Autonomous Region is relatively large, especially the coal chemical industry. The total energy consumption and energy consumption per unit output value are at a high level.

  According to "Several measures to ensure the completion of the ’14th Five-year plan’ energy consumption double control targets" issued by the Inner Mongolia Development and Reform Commission, starting from 2021, coke (semi-coke), calcium carbide, polyvinyl chloride (PVC) and synthetic ammonia (urea) will not be approved from 2021 , methanol, ethylene glycol, caustic soda, soda ash, ammonium phosphate, yellow phosphorus... Polysilicon, monocrystalline silicon and other new capacity projects without downstream conversion. By controlling the scale and suppressing the capacity, the supply of relevant varieties is bound to be gradually reduced.

• Guangdong: suspend the energy-saving review of "two high" projects.

  Guangdong Province is a major coating province and an important chemical city. There are more than 2000 local chemical enterprises, which are mainly famous in the national coating market for home decoration wood coatings and building coatings. The Work Plan of Energy Consumption Double Control in Guangdong Province in 2021 issued by Guangdong Development and Reform Commission points out that iron and steel, chemical industry, non-ferrous metals, cement, glass, etc focusing on the "two high" industries, benchmark the international and domestic advanced level or industry, comprehensively carry out energy-saving diagnosis, and promote the energy-saving transformation and green upgrading of production lines.

  It is required that from the date of the issuance of this article, the review of energy conservation of the "Two high” Energy consumption projects (except major projects in the national planning layout) will be suspended in 2021 for cities whose energy intensity does not decrease but increases. Effective measures shall be taken to quickly reverse the passive situation of work and ensure the completion of the double control goal of energy consumption this year, especially the goal of reducing energy consumption intensity.

• Sichuan: interviewed the red warning area and put forward rectification requirements.

  Sichuan's chemical industry system has a complete range and relatively concentrated layout. It is an important natural gas chemical production and R & D base in China. The production capacity of chemical fertilizer, melamine and other products ranks among the top in China. There are more than 1000 chemical enterprises and more than 200 coating enterprises in Sichuan Province. Panzhihua City, Sichuan Province is the largest concentration of titanium dioxide enterprises in China, TaiHai Technology, TianLun Chemical, TaiDu Chemical, Dahutong Titanium Industry and other enterprises are well-known titanium dioxide enterprises in China.

  The leading group of Sichuan Province's climate change work interviewed the main leaders of the governments of Guangyuan, Ya 'an and Aba prefecture, which are on red alert for meeting the targets of "double control" of energy consumption in the first half of this year, and put forward rectification requirements. We should adhere to the double control of energy consumption in a prominent position, and correctly handle the relationship between economic development and energy conservation and consumption reduction. We should focus on the double control goal, take effective measures to reverse the passive situation as soon as possible, and go all out to complete the double control goal of energy consumption this year.

• Zhejiang: strictly control the scale of chemical production capacity, and promote the relocation of high-energy-consuming processes.

  Zhejiang province, a major chemical industry province, currently has 49 qualified chemical parks (clusters) and 3 cultivation parks. By 2020, there are more than 5,000 chemical industry enterprises in Zhejiang province, with hundreds of kinds of products.

  Zhejiang Province printed and distributed the "14th Five-year Plan” of Energy Saving, Consumption Reduction and Optimal Allocation of Energy Resources in Zhejiang Province, which required strengthening the structural adjustment of key energy consuming areas. Ningbo and Zhoushan should strictly control the capacity scale of petrochemical, steel and chemical industries, promote the outward movement of high energy consuming processes, and relieve the high dependence on fossil energy. Shaoxing, Huzhou, Jiaxing and Wenzhou should strictly control the capacity of textile printing and dyeing, chemical fiber, plastic products and other manufacturing industries, adopt advanced production technology, raise the proportion of high-value-added products, significantly improve the energy efficiency level of unit added value. Promote the withdrawal of production capacity in textile printing and dyeing, chemical fiber, papermaking, rubber and plastic products, electroplating and other industries, strengthen the elimination of backward and excess production capacity, and comprehensively complete the remediation of "scattered and dirty" enterprises.

Production of a variety of chemical products has been limited, and 10,000 chemical enterprises have been suspended.

Chemical industry as a traditional large energy consumption, double control of energy consumption on its output is very obvious. According to incomplete statistics of coating purchasing network, 9 energy consumption does not decrease the increase of the first-level warning area including coating province guangdong, chemical province Jiangsu, phosphating province Yunnan and other areas; The second-level warning areas include zhejiang, a major chemical industry province, Sichuan, a major coal chemical industry province, and Henan, covering 10,000 chemical enterprises.

Among them, the soda production capacity in Qinghai accounts for 15.63%, the PVC production capacity in Xinjiang accounts for 16.99%, and the soda production capacity in Jiangsu accounts for 17.9%, that is, the soda production capacity in the 9 regions with red lights accounts for 38.91% and the PVC production capacity accounts for 37.87%. In addition, the production capacity of copper, aluminum, zinc, tin, rebar, manganese silicon and ferromanganese accounts for a high proportion,  among which tin production capacity accounted for 59% of the country.

Whether it is the 90% production restriction in Yunnan, or the capacity restriction of chemical enterprises and the outward movement of high energy consuming processes in many regions, the impact of energy double control on the supply side of local bulk industrial products is undoubtedly "adding fuel to the fire".

In addition, some enterprises in Rudong County, Nantong City and other places have suspended production due to the impact of the "double control" target. "Our factory in Nantong has not received the formal notice of power restriction. I took the initiative to call the local government department and learned that the power consumption of the factory will be limited by 15% next."

As the person in charge of a garment company in Nantong, Jiangsu Province, Wang Li said that the company has set up factories in many counties and cities such as Rugao and Hai'an in Nantong, and the local authorities have successively spread the news that it will restrict the power consumption of manufacturing enterprises in the future. It is understood that this round of power restriction in Nantong began on September 10 and restarted the machine on October 1.

In addition to Yunnan and Jiangsu, Qinghai, Ningxia, Guangxi, Guangdong, Sichuan, Henan, Chongqing, Inner Mongolia, Henan and other places have recently begun to carry out measures to limit electric energy consumption for the double control goal of energy consumption, to know more related news contact us.