Affected by multiple factors such as the epidemic, natural gas transformation, large-scale technical transformation, and insufficient gas supply in 2020, the production cycle of Guangdong Jian Ceramics has almost hit a record low. Can Guangdong Jian Ceramics return to normal in 2021?
Around the tenth day of the first lunar month, the marketing end of Guangdong ceramic enterprises has started to work one after another, and they are very busy, while the production end seems much deserted.
Nearly 70% of ceramic factories are under construction, but bricks will not be produced until March
"Ceramic Information" comprehensively learned from energy companies and ceramic enterprises that as of February 24, the operating rate of Guangdong ceramic production enterprises has reached nearly 70%, but most of them are currently only in the state of igniting and warming up the kilns, and need to wait until the Lantern Festival The bricks will be officially released later. Most other companies also plan to start ignition in early March and resume brick production in early March
"We have been producing bricks one after another in the past few days. We originally planned to stop the kiln in February a year ago, but due to environmental monitoring and natural gas problems, we stopped early and delayed the customer's goods." "Ceramic Information 》We learned from the marketing manager of a small and medium-sized ceramic company in Baitu that in order to deliver the orders last year, the company had started work on the eighth day of the Lunar New Year (February 19).
According to an interview with "Ceramic Information", the above phenomenon is not uncommon. In 2020, Guangdong ceramic companies experienced a gas shortage for the first time in their large-scale switch to natural gas. Since November, affected by insufficient natural gas supply and soaring gas prices, many ceramic companies have The company shut down its kilns much earlier than in previous years, so it was unable to have enough inventory as in previous years, and many orders even failed to be delivered as scheduled.
Not only that, the market performance after the year has also improved. "Ceramic Information" learned from the headquarters of many ceramic brands in Foshan that it may be related to the effective control of the domestic epidemic situation, and the terminal will show a recovery trend after the year. "We received our first dealer on the sixth day of the Lunar New Year (February 17). So far, several are already in talks, and some have already sent samples." The person in charge of a ceramics company in Foshan is optimistic about this year's market situation. .
Although market expectations are good, judging from the current situation, Guangdong ceramic manufacturers are not expected to produce bricks on a large scale until mid-March, and production can basically return to normal.
Gas prices have fallen but are still at high levels
The main factor leading to the current low production recovery rate of Guangdong ceramic enterprises may be related to the current high natural gas prices.
In the autumn and winter before the Spring Festival, Guangdong ceramic companies encountered a gas shortage after switching to natural gas on a large scale. Pipeline gas once soared from 2.2 to 2.3 yuan/m³ in the summer to 2.9 to 3.25 yuan/m³, and LNG prices rose out of control. , the highest or even suddenBreaking 10,000 yuan/ton, the conversion reaches 7 to 8 yuan/m³. Affected by this, most ceramic companies stopped their kilns early. Some ceramic companies that had not stopped production at that time said that even if the gas price was unbearable, they had to insist on production because they had orders that needed to be delivered on time, otherwise they would suffer greater losses.
"Now the price of natural gas used by Guangdong ceramic enterprises has dropped, and the supply is relatively sufficient." "Ceramic Information" learned from a number of energy companies and enterprises that the current price of natural gas in various parts of Guangdong has dropped compared with before the holiday. Pipeline natural gas prices in Qingyuan, Zhaoqing and Foshan basically fell back to 2.5-2.65 yuan/m³ in February.
LNG spot prices also tend to fall. The current spot price of LNG in Guangdong is as high as 4,200 yuan/ton (about 3 yuan/m³), and has fallen back to 3,500-3,600 yuan/ton (2.5-2.6 yuan/ton) in some areas. /m³), but Jiangmen Enping still maintains the high level of 3.25 yuan/m³ from the year before.
Despite this, there is still a large gap between the above-mentioned prices and summer gas prices, so many ceramic companies have not yet fully resumed production.
"There is no problem with supply now. Many ceramic factories started operations in March, and those that started operations in February only fired and warmed kilns, and the consumption was not large." A person in charge of an energy company told "Ceramic Information" that after the holiday, The tight supply of natural gas has been eased. As the heating season in the north comes to an end, the supply will continue to increase. It is expected that there will no longer be a shortage of supply after Guangdong ceramic manufacturers fully resume operations in March, and prices will gradually fall.
(The article is reproduced from Ceramic Information)
