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——Interview with Wang Xiling, Vice Chairman and Secretary-General of China Soda Industry Association In 2009, under the dual pressures of the financial crisis and overcapacity, China’s soda industry suffered serious losses—the loss of large enterprises was as high as 100 million yuan, and the losses of medium-sized enterprises were as high as Ten million yuan, the loss of small businesses is also more than one million yuan. With the advent of the new year, the negative impact of the financial crisis on China's soda ash industry is gradually diminishing, but the problem of overcapacity in the industry is still growing. Therefore, Wang Xiling, vice president and secretary-general of the China Soda Industry Association, said in an interview with reporters that strict control over production capacity and maintaining market stability are the top tasks facing the soda industry this year.
According to Wang Xiling's introduction, in 2009, China's soda ash production capacity has reached 24 million tons, output is expected to exceed 19 million tons, the domestic soda ash demand is expected to not exceed 17 million tons, and the export volume is more than 2 million tons, and 5 million tons of production capacity is idle throughout the year. “Even if there is no financial crisis, the issue of overcapacity in the soda ash industry will be fully exposed in 2009.†Wang Xiling said that in 2010, the domestic soda ash industry will add nearly 2 million tons of production capacity, and the most optimistic estimate of demand will be About 18 million tons, the export volume will also be about 2 million tons, the soda industry excess capacity situation will further intensify.
Wang Xiling analyzed that this year's soda ash exports will be further restricted, and it is expected that the export volume will be reduced by about 300,000 tons. He told reporters that on October 6, 2009, the Indian Ministry of Finance issued a final ruling in which it decided to impose a 20% special safeguard measure on soda ash originating in China for a tax period from April 20, 2009 to 2010. On the 19th. The Indian side will also apply for an extension after this special safeguard measure expires, which will lead to a significant reduction in China's exports of soda ash to India this year. A Turkish natural alkali plant with an annual output of one million tons has also been put into production. Due to its proximity to the Middle East, it poses a great threat to the export of China's soda ash to the Middle East. As the world’s largest exporter of soda ash, the United States has started full competition with China, the world’s second-largest exporter of soda ash after the outbreak of the financial crisis. The United States has adopted price cuts to expand its market share and will also cause China’s soda ash exports this year. Big impact. In addition, the European Solvay company also joined the battle for the Asian market, began in 2009 to large-scale export of soda ash to Asia.
Wang Xiling stated that with the full recovery of the national economy and the continued growth of GDP this year, domestic soda ash consumption will increase compared to 2009, and the average sales price will also be higher than in 2009. "If you can properly control the total amount, the industry-wide loss situation will be significantly improved; and if the control is not properly implemented, some companies will continue to lose money."
To this end, Wang Xiling proposed: "The soda industry's work this year is to control the total amount, reduce losses, try to make the production capacity to 80%, in order to ensure the basic balance between market supply and demand. This requires the support and cooperation of large enterprises in the industry. It is hoped that large-scale backbone enterprises, enterprises with good geographical location (close to energy sources, raw material production sites, and convenient transportation) and three types of enterprises with high equipment, technology, and management level can conscientiously control production capacity, maintain no losses and have a small amount of profit. While stabilizing prices to facilitate the survival of the fittest in the industry."
According to Wang Xiling, the soda ash industry association participated in the drafting of “Soda ash industry access conditions†(draft for solicitation of opinions), and plans to improve the new soda ash project and the existing soda ash industry from various aspects such as production layout, project scale, energy conservation, and product quality. Standards to curb overcapacity and continued expansion in the soda industry. At present, the Soda Ash Association is integrating the opinions from all over the country to make further amendments and improvements to the “Soda Ash Industry Access Requirementsâ€.
According to Wang Xiling's introduction, in 2009, China's soda ash production capacity has reached 24 million tons, output is expected to exceed 19 million tons, the domestic soda ash demand is expected to not exceed 17 million tons, and the export volume is more than 2 million tons, and 5 million tons of production capacity is idle throughout the year. “Even if there is no financial crisis, the issue of overcapacity in the soda ash industry will be fully exposed in 2009.†Wang Xiling said that in 2010, the domestic soda ash industry will add nearly 2 million tons of production capacity, and the most optimistic estimate of demand will be About 18 million tons, the export volume will also be about 2 million tons, the soda industry excess capacity situation will further intensify.
Wang Xiling analyzed that this year's soda ash exports will be further restricted, and it is expected that the export volume will be reduced by about 300,000 tons. He told reporters that on October 6, 2009, the Indian Ministry of Finance issued a final ruling in which it decided to impose a 20% special safeguard measure on soda ash originating in China for a tax period from April 20, 2009 to 2010. On the 19th. The Indian side will also apply for an extension after this special safeguard measure expires, which will lead to a significant reduction in China's exports of soda ash to India this year. A Turkish natural alkali plant with an annual output of one million tons has also been put into production. Due to its proximity to the Middle East, it poses a great threat to the export of China's soda ash to the Middle East. As the world’s largest exporter of soda ash, the United States has started full competition with China, the world’s second-largest exporter of soda ash after the outbreak of the financial crisis. The United States has adopted price cuts to expand its market share and will also cause China’s soda ash exports this year. Big impact. In addition, the European Solvay company also joined the battle for the Asian market, began in 2009 to large-scale export of soda ash to Asia.
Wang Xiling stated that with the full recovery of the national economy and the continued growth of GDP this year, domestic soda ash consumption will increase compared to 2009, and the average sales price will also be higher than in 2009. "If you can properly control the total amount, the industry-wide loss situation will be significantly improved; and if the control is not properly implemented, some companies will continue to lose money."
To this end, Wang Xiling proposed: "The soda industry's work this year is to control the total amount, reduce losses, try to make the production capacity to 80%, in order to ensure the basic balance between market supply and demand. This requires the support and cooperation of large enterprises in the industry. It is hoped that large-scale backbone enterprises, enterprises with good geographical location (close to energy sources, raw material production sites, and convenient transportation) and three types of enterprises with high equipment, technology, and management level can conscientiously control production capacity, maintain no losses and have a small amount of profit. While stabilizing prices to facilitate the survival of the fittest in the industry."
According to Wang Xiling, the soda ash industry association participated in the drafting of “Soda ash industry access conditions†(draft for solicitation of opinions), and plans to improve the new soda ash project and the existing soda ash industry from various aspects such as production layout, project scale, energy conservation, and product quality. Standards to curb overcapacity and continued expansion in the soda industry. At present, the Soda Ash Association is integrating the opinions from all over the country to make further amendments and improvements to the “Soda Ash Industry Access Requirementsâ€.
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