After a consecutive five-year declining market, the domestic market price of melamine has risen significantly since the beginning of August this year. The current ex-factory price has exceeded 12,000 yuan (t price, the same below) mark, mostly 12100 ~ 13500 yuan, the market price is mostly 12300 ~ 14000 yuan, the high has reached 15000 yuan. Compared with the beginning of August when the market started, the price has risen by around 4,000 yuan in just 4 months, an increase of up to 50%. However, some major production companies in the industry have not yet had time to be happy, and they are facing new concerns: Will small melamine manufacturers return?
Since 2002, the price of melamine has been declining all the way, the lowest per-ton ex-factory price has dropped to about 7,800 yuan, which has fallen below the cost of some small businesses. The small melamine enterprises that could not withstand the winter market for five years in a row stopped production, and some even sold the equipment. Liu Jinxiu, deputy general manager of Henan Zhongyuan Dahua Group Co., Ltd., estimated that in the past few years, more than half of the small melamine enterprises with a production capacity of 3,000 tons/year had stopped production compared with 70 to 80 at the highest.
However, the market's warming has made these companies that have already exited the market generate impulses to re-enter the market.
Not long ago, a melamine production enterprise with an annual output of 3,000 tons in Shandong started overhauling its equipment and preparing to resume production. According to the reporter's understanding, in the melamine-producing province of Shandong, the seven or eight small melamine producers that have ceased production in succession are doing preparations for the resurrection like the company.
Since the 1990s, the domestic melamine market has been tightly priced after being affected by the suspension of production of major equipment in the world and the financial crisis in Southeast Asia. Shandong, Hebei and other places have launched a large number of small devices ranging from 1,000 tons to 5,000 tons/year. These small devices are produced using a two-step process, which is not only of small congenital size, high cost, but also has unreasonable design weaknesses. According to Wu Xiaowang, chairman of Shandong Taishan Hualu Chemical Co., Ltd., the unreasonable design is reflected in the mismatch between the heating furnace and the reaction bed, mainly due to the fact that the company that launched these small devices “traveled all over the country†in one year. It was caused by copying. This congenital deficiency has led to high urea consumption. They produce 1 ton of melamine, which consumes about 3.5 tons of urea and 3.8 tons of high.
In addition, the pollution of these small melamine companies is also very serious. Because of the comprehensive utilization of waste liquid wastes by large companies, the production of 1 ton of melamine consumes only 1.6 to 1.7 tons of urea, and zero discharge of waste water and waste gas. For every melamine produced by a small melamine company, it is necessary to generate 3 tons of tail gas with a large amount of ammonia and carbon dioxide, and 5 cubic meters of waste water containing ammonia. Whether it is a small melamine enterprise that is equipped with a urea plant or purchased urea, most of them have not established an exhaust gas recovery device, and there is no supporting sewage treatment facility. Some enterprises discharge wastewater with ammonia and nitrogen levels of 366 mg/l, which is exceeding the standard. The indiscriminate discharge of its exhaust gas not only seriously pollutes the environment, but also causes a waste of valuable by-products.
Facing this trend, Huang Shiming, deputy director of the melamine plant of Chuanhua Co., Ltd., the largest melamine production and export company in China, and Guo Quanpu, manager of Zhongyuan Dahua Group’s sales company, all believe that these small melamine companies will enter the market again if they enter the market on a large scale. Bring a huge impact on the entire market, and bring great impact on the survival of large companies, and may make the market just warmer again into the cold winter. For example, small-scale companies have price advantages and often engage in low-cost promotions. Large-scale enterprises have large investment projects. Zhongyuan Dahua Group has an annual output of 30,000 tons of melamine project investment of 245 million yuan, while a small device can cost as much as several million yuan and tens of millions of yuan. In addition, in terms of environmental protection, large-scale enterprises invest much more than small enterprises, and production costs are much higher. Therefore, in addition to the state should be controlled from the environmental protection policy, strict industry access, the tax policy should also be based on the size of the company to define different standards.
The deputy general manager of a large-scale melamine production enterprise in Shanxi Province suggested that the country should adopt a taxation method based on the level of product quality to suppress the revival of small businesses. As Zhongyuan Dahua Group, Fujian Sanming Chemical Factory, and Chuanhua Co., Ltd. belong to the same grade, the product quality is excellent, the technology is mature, and the product has high grade product rate. It is applicable to all melamine post-processing industries such as melamine resin and adhesive. There can be a tax standard for them. For the low-end products with high energy consumption and pollution of 1,000 tons to 3,000 tons per year, the product quality control system is not perfect, and the production line operation stability and reliability are poor, and the product quality is poor, the tax standards should be raised.
At present, powerful companies such as Henan Zhongyuan Dahua Group and Chuanhua Co., Ltd., with a scale of over 60,000 tons/year, have advanced to large-scale development through the introduction of advanced technologies and are gradually in line with international standards. More than 10,000 tons of manufacturers reached 16 and 30,000 tons / year of more than 13 manufacturers, the 29 total production reached 695,000 tons / year, accounting for 80% of the country's total production. At present, the price of melamine has rebounded. The resumption of production after the resumption of production of small-scale enterprises will inevitably lead to a return to disorderly competition. The state should issue regulatory policies in due course to prevent this from happening again.
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