In previous years, at the beginning of the new year, Linyi ceramic enterprises would resume production early in order to normalize production throughout the year. But this year, Linyi ceramics companies as a whole not only started work late, but also many ceramics companies "only started lighting and did not dare to put into production."
The main reason for the "late start" is that in late January 2021, the Linyi Municipal Government required all ceramic companies to use dual-gas production, that is, the flour milling process also switched to natural gas. According to the current industry status and market situation, once natural gas is used for milling production, the production costs of Linyi ceramic companies will rise significantly, and the market competitive advantage will be further weakened.
"Ceramic Information" learned from the Linyi production area that due to this impact, more than 80% of Linyi's ceramic enterprises' kilns have been ignited, but most of them have been in a warm kiln state and dare not put materials into production. As of now, only a few ceramic companies in the entire Linyi production area are producing bricks normally.
The milling process also requires switching to burning natural gas
Linyi Ceramics Enterprises “It’s Difficult to Start Production, and It’s Difficult to Not Start Production”
On January 20, 2021, the Linyi Municipal Government put forward the requirement that "ceramics companies dismantle coal pulverizing facilities and use all natural gas production." Although all ceramic companies were worried about natural gas pulverizing, they still completed the dismantling of coal pulverizing-related facilities within the specified time. Up to now, all the original coal-water slurry pipelines, mixers, slag removers and other coal pulverizing facilities of each ceramic enterprise have been dismantled.
Some Linyi ceramic enterprises told "Ceramic Information" that switching to natural gas for milling will inevitably further increase production costs. In the current era of extremely fierce cost competition, Linyi ceramic enterprises are facing a severe test of survival.
It is understood that among all the ceramic production areas in the country that have completed the "coal-to-gas" transition, the use of natural gas for powdering is rare. In Shandong Province, only a few ceramic companies in Linchi Town, Zouping City, and other places are using it. In fact, after using natural gas to make powder, the production costs of several ceramic companies in Linchi Town have increased significantly, and they are simply unable to compete with surrounding ceramic companies. Just after July last year, several ceramic companies in Linchi Town were forced to suspend production due to high costs and excessive sales pressure.
Affected by this, Linyi ceramic enterprises are very cautious in arranging the resumption of production after the holiday. Compared with previous years, this year is the year when the Linyi production area started production later. Even during the epidemic last year, most Linyi ceramic enterprises actively started to resume work and production quickly.
According to "Ceramic Information", after the Spring Festival, only Ruida Ceramics, a ceramics company in the entire Linyi production area, resumed production as planned, while most other ceramics companies delayed their restart until around the Lantern Festival. Some ceramic companies said frankly: "If we open it, the significantly higher costs will make it impossible for the company to make money; if we don't open it, we may not even have the chance to compete in the future."
"If the ignition is not started, it will have a greater impact on production this year. Not only will it cause someSub-dealers are losing, and subsequent recruitment will become increasingly difficult. Even after ignition, many ceramic companies dare not put into production easily, mainly because the cost increases too much. "The heads of many ceramic enterprises in Linyi unanimously said.
The sales person in charge of a Linyi ceramics company told Ceramic Information that currently, when ceramic tiles from other places are shipped to Linyi, the prices of some products are lower than those in Linyi. After switching to natural gas for milling, the competitiveness of Linyi ceramic tiles will be further weakened.
A large-capacity production line
The cost will increase by 50,000-60,000 yuan per day
How much will the production cost of Linyi Ceramics increase after using natural gas for powdering? According to calculations by local ceramic companies (due to different gas prices among ceramic companies, the incremental cost of natural gas pulverizing is slightly different), if natural gas pulverizing is used to produce an 800×800mm ceramic tile, the product cost will be higher than that of coal. The cost of milling will increase by 1.2-1.5 yuan; and the product cost of producing a 300×600mm interior wall tile will also increase by nearly 0.3 yuan.
According to the above cost accounting, each ceramics company in Linyi will spend tens of thousands of yuan more every day. This has greatly weakened the product competitiveness of Linyi's ceramics companies in the current extremely fierce competition. Taking a 300×600mm interior wall tile production line with a daily output of 170,000 pieces as an example, using natural gas to make powder will cost an extra 51,000 yuan per day; and an 800×800mm floor tile production line with a daily output of 50,000 pieces, using natural gas to make powder every day There will be an additional cost of 60,000 yuan.
"At present, only a few ceramic factories have resumed production, but it is difficult to say how much the cost of a brick will increase. Only after a period of actual operation can the precise production cost be calculated." Linyi Yi refused to disclose Named industry insiders said.
In fact, since the implementation of "coal to gas" in 2019, the profits of Linyi ceramic companies have been very meager, and product sales have continued to fluctuate with market demand. Natural gas pulverization has once again raised production costs, leaving most ceramics in Linyi Enterprises can hardly bear it. Especially in the current era of extremely fierce cost competition, natural gas milling will leave many ceramic companies not only without profits, but also in a state of serious losses.
“If natural gas milling is really implemented, many ceramic companies may not be able to do it.” said the above-mentioned industry insider in Linyi who did not want to be named. To this end, Linyi ceramic enterprises hope to change the status quo through communication and dialogue with the government.
It is also understood that relevant departments in the Linyi production area are currently investigating whether natural gas pulverization is feasible. "Currently, there is no final reply from the government department, so everyone is very cautious about whether to put it into production." The above-mentioned industry insiders said frankly. Up to now, only 6 ceramic companies in Linyi production area have put into production and produced bricks..
(The article is reproduced from Ceramic Information)
