According to the China Petroleum and Chemical Industry Association, China’s petroleum and chemical industry achieved remarkable results in 2006. The economic benefits of the industry continued to grow rapidly, achieving a good situation of maintaining double-digit growth for eight consecutive years; the output of major products was stable and rapid. With growth, market demand is strong, prices of most products have increased, and production and sales have been well connected; import and export trade is still active, and the trade deficit has widened; investment in fixed assets has grown rapidly, and the development momentum has continued to increase. However, with the rapid development of the industry, there are still some problems, such as: the overcapacity of some products, the pressure of energy saving and environmental protection continues to increase, and the task of energy saving and emission reduction is difficult to complete.
I. Excessive Fertilizer Production Capacity With the large amount of investment and construction in recent years, the domestic nitrogen fertilizer and phosphate fertilizer production capacity gradually exhibited an excess of momentum. The fertilizer season in 2006 was short-lived in the season and the off-season arrived earlier than before, and the peak season prices did not rise to 2005 levels. The average prices of major products such as urea, monoammonium phosphate and diammonium phosphate were lower than in 2005. In particular, the large increase in nitrogen fertilizer capacity has caused the domestic urea market to fall for several months from July. Under the circumstances that the prices of coal, gas and electricity have risen significantly, the urea price has dropped sharply year-on-year, and corporate profits have fallen sharply. Up to 1/3.
As a support agriculture industry, the fertilizer industry has been under the protection of the country for a long time, with low profitability and weak resistance to risks. Since they are not ready to respond, companies are generally concerned about the country's cancellation of preferential policies. It is recommended that the country gradually promote the cancellation of preferential policies for fertilizers, and strictly limit reinvestment. In accordance with the principle of total volume control and equal replacement, encourage the production to be concentrated in resources and markets, and in areas with rich gas resources such as Sichuan, Xinjiang, and Chongqing. Large-scale bases are built in coal-rich regions such as Shanxi, Shaanxi, Inner Mongolia, and Ningxia, and the state supports them.
Second, the caustic soda ability to expand too quickly In recent years, the national caustic soda formed a construction climax, mainly with PVC, especially in some western regions with salt and energy advantages to expand energy is very rapid. In 2005, the national caustic soda production capacity was nearly 17 million tons. From the end of 2006 to the beginning of 2007, more than 2 million tons of new expansion capacity was put into operation. It is expected that by the first half of 2007, the national caustic soda production capacity may exceed 19 million tons.
China's caustic soda production capacity has always had the hidden worry. As the country controls the “two high and one capital†product, its excessive development has become a prominent issue in the petrochemical industry. It is suggested that the government take measures to control the total amount of caustic soda, carry out resource structural adjustments, balance regional development, and promote the healthy development of the caustic soda industry. Since caustic soda is a high-energy-consuming industry, it is reasonable for the government to consider lowering its export tax rebate rate or canceling export tax rebates and restricting its exports. However, judging from the current situation, the adjustment of export tax rebate rates should be gradually implemented to ease the restrictions on export to the domestic market. Market pressure. At the same time, with the increase in the price of electricity in China, the cost of running the caustic soda industry has increased. If the company itself has the ability to develop cogeneration, the government should consider supporting it. This will not only reduce the company's own production costs, but also achieve the purpose of reducing energy consumption, killing two birds with one stone. In some areas, power companies have to levy “network construction fee†and other expenses for caustic soda-based power, which is not conducive to improving energy efficiency.
Third, the pressure of energy conservation and environmental protection According to statistics from the National Bureau of Statistics, in the first half of 2006, the energy consumption of the chemical industry in China fell by 5%, while the energy consumption in the petrochemical industry increased by 8.7%. The entire energy consumption of the petroleum and chemical industries did not fall, but rose 4 %. The small scale of production, backward technology, extensive operation and management, and disorderly expansion of high energy consumption products are the main reasons that hinder the reduction of energy consumption in the entire industry. Environmental issues are also more prominent. The Environmental Protection Administration has repeatedly investigated environmental risks and focused on the petroleum and chemical industries. The oil and chemical industry has historically owed debts, inadequate pollution prevention measures, and unreasonable industrial layout, which has become the root cause of the sudden increase in environmental pollution accidents in recent years. The national "Eleventh Five-Year Plan" proposes that major pollutants should be reduced by 10%, and this indicator should be included in the "binding indicators". This will be an arduous task for the petroleum and chemical industries.
According to the person in charge of the Information Department of the China Petroleum and Chemical Industry Association, the current goal of reducing energy consumption by 4% and emission reduction by 2% in 2006 is basically frustrating. The situation in 2007 will be severe. If it is still not finished, " The realization of the ultimate goal of the 11th Five-Year Plan is more dangerous.
IV. Irrational Trends in Biodiesel Investment Construction Currently, China’s biodiesel production capacity is approximately 800,000 tons. Major companies include Sichuan Gushan Oil & Gas Chemical Company, Hainan Zhenghe Bio Energy Company, Fujian Excellence New Energy Development Company, Anhui Guofeng Group, Honghu Lang Group, Jiangsu Qingjiang Bio Energy Technology Company. As the construction of biodiesel continues to heat up, the total number of biodiesel projects that have been launched across the country and are ready to start has exceeded 3 million tons. This brings about a problem of raw material supply. On the one hand, China's catering waste oil, waste oil and other waste oil collection is not a complete system, it is difficult to focus on, on the other hand, China's land resources are limited, the cultivation of energy crops will have a dispute with food crops, affecting food produce. Therefore, large-scale development of biodiesel requires careful study.
V. Sulfuric acid prices continued to be sluggish Due to the rapid growth in capacity, coupled with a large number of low-priced imports of sulfuric acid to hit the market, since 2006, domestic prices of sulfuric acid have continued to slump, and many companies are on the verge of losses. At the same time, there are still many companies wishing to introduce new large-scale sulphuric acid plants. These companies are tempted to drink steam to generate electricity, but this not only exacerbates the domestic excess sulphuric acid crisis, but also brings in sulphur supply. problem.
I. Excessive Fertilizer Production Capacity With the large amount of investment and construction in recent years, the domestic nitrogen fertilizer and phosphate fertilizer production capacity gradually exhibited an excess of momentum. The fertilizer season in 2006 was short-lived in the season and the off-season arrived earlier than before, and the peak season prices did not rise to 2005 levels. The average prices of major products such as urea, monoammonium phosphate and diammonium phosphate were lower than in 2005. In particular, the large increase in nitrogen fertilizer capacity has caused the domestic urea market to fall for several months from July. Under the circumstances that the prices of coal, gas and electricity have risen significantly, the urea price has dropped sharply year-on-year, and corporate profits have fallen sharply. Up to 1/3.
As a support agriculture industry, the fertilizer industry has been under the protection of the country for a long time, with low profitability and weak resistance to risks. Since they are not ready to respond, companies are generally concerned about the country's cancellation of preferential policies. It is recommended that the country gradually promote the cancellation of preferential policies for fertilizers, and strictly limit reinvestment. In accordance with the principle of total volume control and equal replacement, encourage the production to be concentrated in resources and markets, and in areas with rich gas resources such as Sichuan, Xinjiang, and Chongqing. Large-scale bases are built in coal-rich regions such as Shanxi, Shaanxi, Inner Mongolia, and Ningxia, and the state supports them.
Second, the caustic soda ability to expand too quickly In recent years, the national caustic soda formed a construction climax, mainly with PVC, especially in some western regions with salt and energy advantages to expand energy is very rapid. In 2005, the national caustic soda production capacity was nearly 17 million tons. From the end of 2006 to the beginning of 2007, more than 2 million tons of new expansion capacity was put into operation. It is expected that by the first half of 2007, the national caustic soda production capacity may exceed 19 million tons.
China's caustic soda production capacity has always had the hidden worry. As the country controls the “two high and one capital†product, its excessive development has become a prominent issue in the petrochemical industry. It is suggested that the government take measures to control the total amount of caustic soda, carry out resource structural adjustments, balance regional development, and promote the healthy development of the caustic soda industry. Since caustic soda is a high-energy-consuming industry, it is reasonable for the government to consider lowering its export tax rebate rate or canceling export tax rebates and restricting its exports. However, judging from the current situation, the adjustment of export tax rebate rates should be gradually implemented to ease the restrictions on export to the domestic market. Market pressure. At the same time, with the increase in the price of electricity in China, the cost of running the caustic soda industry has increased. If the company itself has the ability to develop cogeneration, the government should consider supporting it. This will not only reduce the company's own production costs, but also achieve the purpose of reducing energy consumption, killing two birds with one stone. In some areas, power companies have to levy “network construction fee†and other expenses for caustic soda-based power, which is not conducive to improving energy efficiency.
Third, the pressure of energy conservation and environmental protection According to statistics from the National Bureau of Statistics, in the first half of 2006, the energy consumption of the chemical industry in China fell by 5%, while the energy consumption in the petrochemical industry increased by 8.7%. The entire energy consumption of the petroleum and chemical industries did not fall, but rose 4 %. The small scale of production, backward technology, extensive operation and management, and disorderly expansion of high energy consumption products are the main reasons that hinder the reduction of energy consumption in the entire industry. Environmental issues are also more prominent. The Environmental Protection Administration has repeatedly investigated environmental risks and focused on the petroleum and chemical industries. The oil and chemical industry has historically owed debts, inadequate pollution prevention measures, and unreasonable industrial layout, which has become the root cause of the sudden increase in environmental pollution accidents in recent years. The national "Eleventh Five-Year Plan" proposes that major pollutants should be reduced by 10%, and this indicator should be included in the "binding indicators". This will be an arduous task for the petroleum and chemical industries.
According to the person in charge of the Information Department of the China Petroleum and Chemical Industry Association, the current goal of reducing energy consumption by 4% and emission reduction by 2% in 2006 is basically frustrating. The situation in 2007 will be severe. If it is still not finished, " The realization of the ultimate goal of the 11th Five-Year Plan is more dangerous.
IV. Irrational Trends in Biodiesel Investment Construction Currently, China’s biodiesel production capacity is approximately 800,000 tons. Major companies include Sichuan Gushan Oil & Gas Chemical Company, Hainan Zhenghe Bio Energy Company, Fujian Excellence New Energy Development Company, Anhui Guofeng Group, Honghu Lang Group, Jiangsu Qingjiang Bio Energy Technology Company. As the construction of biodiesel continues to heat up, the total number of biodiesel projects that have been launched across the country and are ready to start has exceeded 3 million tons. This brings about a problem of raw material supply. On the one hand, China's catering waste oil, waste oil and other waste oil collection is not a complete system, it is difficult to focus on, on the other hand, China's land resources are limited, the cultivation of energy crops will have a dispute with food crops, affecting food produce. Therefore, large-scale development of biodiesel requires careful study.
V. Sulfuric acid prices continued to be sluggish Due to the rapid growth in capacity, coupled with a large number of low-priced imports of sulfuric acid to hit the market, since 2006, domestic prices of sulfuric acid have continued to slump, and many companies are on the verge of losses. At the same time, there are still many companies wishing to introduce new large-scale sulphuric acid plants. These companies are tempted to drink steam to generate electricity, but this not only exacerbates the domestic excess sulphuric acid crisis, but also brings in sulphur supply. problem.
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