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Power rationing and production shutdowns have swept more than 10 provinces. Will refrigeration companies be affected?

Views: 19     Author: Site Editor     Publish Time: 2021-09-27      Origin: Site

Power rationing and production shutdowns have swept more than 10 provinces. Will refrigeration companies be affected?

Power rationing and production suspension are sweeping across many provinces, including Jiangsu, Zhejiang, Shandong, Guangxi, Yunnan, etc., starting with five and stopping two, gradually increasing to four and stopping three, and some places have even notified three and stopping. Four.

The current curtailment is considered the largest in recent years.

Why do you want to cut off the power supply?

It is understood that the main reason for the current curtailment is insufficient power supply, and the main reason for the lack of power supply is the soaring coal price, which causes more power plants to produce more losses.

my country is a large coal importer. In the past, it mainly imported coal from Australia. However, this year, as of the end of July, the total coal imported from Australia was only 780,000 tons, which was a sharp drop of 98.6% from the 56.8 million tons in the same period in 2020.

On the other hand, at the Fifth Plenary Session of the 18th Central Committee, it was proposed to implement the "dual control" action of total energy consumption and intensity, referred to as "dual control of energy consumption". After the completion of the "dual control" target in the first half of this year, localities have accelerated the pace to promote the "dual control" of energy consumption.

From the perspective of the reduction of energy intensity, the energy intensity of nine provinces (regions), Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi, and Jiangsu, rose instead of falling in the first half of the year, which is a first-level warning.

The 10 provinces of Zhejiang, Henan, Gansu, Sichuan, Anhui, Guizhou, Shanxi, Heilongjiang, Liaoning, and Jiangxi did not meet the schedule requirements in the first half of the energy intensity reduction rate, which is a secondary warning.

Among them, the first-level early warning indicates that the situation is very severe, the dual-control progress goal has not been completed, and the actual value is greater than 10% between the target value; the second-level early warning indicates that the situation is relatively severe and the dual-control progress target has not been completed, and the actual value is compared with the target value. Regions where the gap is less than 10%.

Refrigeration parts and host companies have not been affected for the time being, and chemical companies have been affected

On September 22, Hongbaoli announced that in order to meet the regional requirements of "dual energy consumption control", the wholly-owned subsidiary Taixing Chemical Company's PO device and DCP1 device will implement limited production shutdown and overhaul. It is understood that Hongbaoli currently has an internationally large-scale polyurethane rigid foam combination polyether industrial base, an alcohol amine product R&D center and industrial base, a professional energy-saving new material industrial base, and a propylene oxide industrial base in Taixing, Jiangsu.

On September 22, Tianyuan issued an announcement stating that, recently, the Yunnan Provincial Development and Reform Commission issued the “Notice of the Office of the Leading Group for Energy Conservation of Yunnan Province on Resolutely Doing a Good Job in Dual Control of Energy Consumption”. According to the relevant requirements of the notice, the company's calcium carbide base in Yunnan, Shuifu Jinming Chemical Co., Ltd., has been phased out of production; Daguan Tianda Chemical Co., Ltd. and Yunnan Tianli Coal Chemical Co., Ltd. arrange production according to one production line.

In addition, some investors asked Zhongxin Fluorine Materials on the investor interactive platform: The company is located in Shaoxing City. Has the industrial park where it is located has been affected by power cuts? Does the company have plans to expand in the future?

Zhongxin Fluorine Materials responded on September 23: The company's registered place is in Hangzhou Bay Shangyu Economic and Technological Development Zone, which does not belong to Keqiao. Although it will be affected by power restrictions under some general circumstances, the overall impact is not significant.

At the same time, some refrigeration companies in Shandong and Zhejiang reported to the "Refrigeration Business Situation" that some areas heard that power cuts were going to be set, and the factories had already made preparations and coordination.

The reporter also learned from industry insiders that some foreign-funded refrigeration companies are affected by the epidemic, supply, and price increases of raw materials, and their production is subject to certain restrictions. This situation has brought another change. Some refrigeration parts orders have been shifted to domestic enterprises, which has caused their production to become even more tense.

Of course, many people in the industry also pointed out that the substantial increase in foreign trade orders may be risky. In this round of rapid foreign trade growth, many companies may blindly purchase various raw materials, and these raw materials may be at high prices. Purchased. At the same time, the Fed's initiation of the unlimited QE policy and the US launch of a massive economic stimulus plan led to the flooding of the US dollar and the increase in global liquidity. Therefore, there is also a voice suggesting that power cuts may not necessarily be a bad thing for foreign trade export companies.

Refrigerant, stainless steel, etc. or will set off another wave of price increases

Under the influence of the recent tightening of "dual control" measures in various places, the production capacity of raw materials has also been greatly reduced. Some analysts believe that the field of raw materials will further raise prices.

From September 13 to September 17, the price of refrigerants continued to soar, mainly due to the increase in the price of refrigerant raw material hydrofluoric acid. At the same time, some of the trichloroethylene devices were overhauled, and the price of goods was tight. The refrigerant manufacturers were limited by cost factors and the operation of the devices was low. The impact of power rationing in Jiangsu and Zhejiang has further tightened on-site supply.

As early as the beginning of July, a notice on the steel industry's "production in 2021 not exceeding the output in 2020" has been announced. Some companies have strictly implemented production restrictions and reduced the operating rate to around 70%. However, other stainless steel plants started to reduce their output in early September. Among them: Southern China: Due to power curtailment in Guangxi, there has been a reduction in August, and the September production schedule has a smaller month-on-month decrease compared to August.

Industry insiders predict that many raw materials will be reduced in production, the market shortage crisis will be highlighted, and the inventory will be at the lowest level in the past ten years! It is expected that as the "Silver Ten" peak season continues, there will still be greater room for increase in raw material prices.

Refrigeration companies: dilemma? opportunity?

"From the perspective of the macro environment, the country's carbon neutrality, carbon peaking policies, and dual control all regulate energy-consuming enterprises and promote market transformation." said Jiang Han, a senior researcher at Pangu Think Tank.

Under the torrent, no one is spared, and many companies will fall into a period of pain. Industry insiders told the reporter of "Refrigeration Business Situation" that the current power cut will inevitably lead to limited production capacity of the company and a longer delivery period. The supply of raw materials for enterprises is limited, and the pressure on operating costs has increased, and the resulting price increase will also affect the terminal.

After the difficulties, can we usher in a new life? What should refrigeration companies do?

The key is efficient production, optimized inventory, and sustainable development.

Through digital transformation, Zhejiang Daming has increased production efficiency by 17%, reduced operating costs by 15%, increased order delivery rate to 98%, product qualification rate approaching 100%, and inventory accounting accuracy rate increased to 97%.

Facing the global environmental and energy crisis, Sanhua is based on "focusing on leading", pursuing "innovation and transcendence", with the vision of "developing a smart low-carbon economy and creating a green quality environment" to develop products, provide solutions, and become a global industry leader. The leader of a market segment has become an important creator and contributor to the green quality environment of mankind.

There are many such companies in our refrigeration industry that are constantly transforming to achieve green development.




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