Recently, due to tight power supply and dual energy consumption controls, power restrictions and production restrictions have swept across at least 10 provinces including Jiangsu, Zhejiang, Shandong, Guangxi, Yunnan, etc.!
Since the end of May this year, the ceramic industry was officially listed as a "Two High" project by national ministries and commissions. The normal production of the ceramic industry and the upstream chemical raw materials industry in Guangxi, Guangdong, Yunnan, Shandong, Hunan and other major ceramic provinces has been severely affected. Big impact. First, hundreds of production lines in Guangxi, Yunnan, and Guangdong suffered from power rationing and shutdown. Then there were power rationing in Zibo, Shandong, and in the Guangdong production area, "open three times but stop four", or even "open two times but stop five"...
According to "Ceramic Information", since September 22, important ceramic production areas such as Linyi and Hunan in Shandong have also begun to limit power supply, and many local ceramic companies have reduced or suspended production.
In addition, due to the recent rise in coal, raw material and other prices again, many ceramic companies said that "products are being produced at a loss" and are brewing a new round of ceramic tile price increases.
Due to cost pressure, on September 25, a northern ceramics company issued a "notice" to suspend production, saying: Due to the recent continued rise in coal prices, resulting in rising product costs, and taking into account the company's production problems, the company decided to suspend production in October 2021. Production will be suspended around February 10, and the specific production start time is tentatively scheduled around February 15, 2022. The production suspension lasted for more than four months, which is equivalent to starting an early holiday in October.
Many ceramic production areas in Hunan are experiencing power outages
Linyi Limited Current Ceramics Factory “halved” production
"Hunan is not rationing power, it is directly shutting down the power!" On the evening of September 22, the person in charge of a ceramics company in Hengyang, Hunan revealed to "Ceramic Information" that he received a notice from the Hunan Provincial Power Supply Company that at 8:00 on September 23 —At 24:00, all local ceramic production lines will be shut down.
Previously in August, Hengyang County, Hunan Province issued the "Notice on Power Demand Response and Orderly Power Use in Summer 2021." The notice pointed out that there was a large power supply gap in Hunan Province during part of August. Enterprises with large electricity consumption should take the initiative to shift production to avoid peak hours to provide electricity to the people. This move has caused many ceramic companies in the Hengyang production area to suffer from power supply shortages. Problem, part of the production line has been stopped.
According to "Ceramic Information", in addition to Hengyang, Hunan Yueyang and other production areas are also affected by power restrictions and shortages. On the evening of September 22, all ceramic production lines in the Yueyang production area were shut down due to a power outage, and the only option for workshop loading wasEmergency lighting.
In the production areas of Shandong, since Zibo began "power rationing" on September 12 (for details, see: Shandong's "power rationing", electricity prices may rise by 10%, ceramic companies have shouted that "this year is too difficult"), Linyi, Shandong Province has recently Power rationing has also begun. According to "Ceramic Information", there are 68 ceramic companies and 115 ceramic tile production lines in Zibo and Linyi, Shandong. This round of power cuts has a greater impact on local ceramic companies.
"There is no way. After the power rationing, due to insufficient power supply, the production capacity of most ceramic companies' production lines has basically dropped by nearly half." A person in charge of a ceramic company in Linyi who did not want to be named told "Ceramic Information".
It can be said that power restrictions and power outages are becoming a problem that restricts the normal production of many ceramic companies. Today, most ceramic companies in Linyi have entered the "halved" production stage. "In order to save electricity to support production, we dare not turn on the air conditioners in each office of our company." said an office employee of a Linyi ceramics company.
There are 24 ceramic companies and 49 production lines in Anhui Province. Recently, Anhui Province issued the "Emergency Notice on Orderly Use of Electricity." It mentioned that due to factors such as the continued shortage of thermal coal and the abnormal frequency of generating units in the province in the near future, there will be a gap in power supply and demand in the province. On September 22, it is expected that the province's maximum power load will be 36 million kilowatts, and the balance between power supply and demand will be about 2.5 million kilowatts. The supply and demand situation is very tight. In order to ensure the smooth operation of the province's power grid and reliable power supply, after research, it was decided to launch the province's orderly power consumption plan from September 22.
Shaanxi Province requires that from September to December, newly built "two high" projects shall not be put into production. This year's new "two high" projects that have been put into production will have a production limit of 60% based on the previous month's output. Other "two high" enterprises will implement Measures such as reducing the operating load of production lines, shutting down submersible arc furnaces and limiting production will ensure a 50% production reduction in September.
“Many products are produced at a loss”
Ceramic factories are planning a new round of price increases
“This is the largest power rationing this year.” Some ceramic companies said that although power rationing has been intermittent this year, it was only “one or two days a week” before, and the impact on production was not too great.
As various ceramic companies were restricted from power production, production costs quickly increased. In order to further reduce losses, Linyi Medium Plate increased product prices on September 24.
On September 22, four medium plate manufacturers in Linyi, Shandong collectively issued a notice to customers that they would adjust the price of their 400×800mm medium plate from September 24. The reason for the price increase is due to the recent rise in raw material prices and limited power supply, which has led to a sharp increase in production costs.
It is understood that the price increase of the 400×800mm medium plate this time is not large. Judging from the price increase notices issued by various ceramic companies, four ceramic companies have raised the price of a single medium plate by 0.1 yuan. In addition, the prices of other specifications of products will not be adjusted for the time being. However, as the production costs of various ceramic companies continue to rise, it will only be a matter of time before the price of ceramic tiles increases.
“Many products are produced at a loss.” Tao Qi, the person in charge, said frankly. It is understood that since the resumption of production this year, the price of medium plate in Linyi production area has been adjusted many times due to factors such as production costs and market sales at various times. Nowadays, the price of 400×800mm medium plate at various ceramic enterprises in Linyi has climbed from 6 yuan per piece at the beginning of the year to the current 6.6-6.8 yuan.
After experiencing a continued sluggish market off-season, the ceramic tile market did not usher in the "Golden Nine and Silver Ten" as expected. Instead, under the influence of dual energy consumption control policies, as well as power restrictions and production suspensions in various ceramic production areas across the country, coal, Prices of chemical and other raw materials continue to rise. The price increase of building ceramics products has recently become a major issue discussed by ceramics companies.
"Coal, chemicals, and cartons have all seen very large increases recently. The price will be raised at the end of the month, by 1 yuan per piece." A few days ago, the owner of a ceramics company in Gao'an, Jiangxi, discussed the price increase with the company's sales general manager and told "Ceramic Information" ” said.
In the Hunan production area, Hengyang Sunshine Ceramics, the largest local manufacturer of ancient architectural tiles and Siwa tiles, has raised the price of Siwa products by 1.5 cents per piece, and various Siwa accessories, ancient architectural tiles, etc. have also been raised. 1 cent increase.
It is understood that from the rise in color material prices at the beginning of this year to the continued rise in coal prices in May, Hengyang Sunshine Ceramics has adjusted prices almost every month since March, and has raised prices twice in September. .
"Ceramic Information" noticed that since mid-September, price increase letters from ceramic enterprises in more than 10 producing areas including Guangdong, Guangxi, Yunnan, Hubei, Hunan, Shandong, Jiangxi, Shaanxi, and Henan have been leaked in the circle of friends, setting off a stir. This year there has been another round of fierce ceramic tile price increases. The price of ceramic tiles is about to rise.
(Article reproduced from Ceramic Information)
