China Ceramics Network reporter learned from the official website of the National Development and Reform Commission that the country’s apparent natural gas consumption in 2021 was 372.6 billion m³, a year-on-year increase of 12.7%. On the one hand, the continued growth of demand, on the other hand, the global upstream natural gas development investment is lower than expected and the overall LNG market production capacity is declining, resulting in tight supply in the natural gas market since the beginning of the year.
For manufacturing companies, including building ceramics, the tightening of energy supply will inevitably be accompanied by supply restrictions and price increases, which will affect the company's production. Take the two production areas of Zibo, Shandong and Anyang, Henan, as examples. At the end of last year, gas companies in Zibo, Shandong began to limit supply. From November last year to March this year, natural gas was supplied according to the gas consumption of each ceramic company in the same period last year. The excess amount was based on LNG real-time Anyang Northern Shengli Gas Company also issued a price adjustment notice in November last year, raising the peak monthly gas supply price for industrial gas to 7.49 yuan/m³.
Relevant data shows that the average price of domestic liquefied natural gas after the Spring Festival is 5,510 yuan/ton, an increase of 42.5% from the average price before the holiday of 3,866.67 yuan/ton, and an increase of 83.67% compared with the same period last year. Because energy costs remain high, many ceramic companies across the country have chosen to postpone the resumption of work and production in 2022. However, so far, the increase in natural gas prices is still very obvious.
Gas prices rise in Guangdong and Gaoyi
Some ceramic companies have suspended production
In February this year, the price of natural gas in Enping, Guangdong experienced five consecutive rounds of increases. The unit price of natural gas rose from 3.75 yuan/m³ to 7.18 yuan/m³, breaking through the historical peak. The reporter learned that although the current Enping natural gas price has dropped somewhat compared with the highest price, it is still at a relatively high level. In addition to Enping, the LNG gas price in Qingyuan, Guangdong has also reached 9,500 yuan/ton, which is equivalent to about 6.5 yuan/m³, which has increased significantly compared with the end of last year.
In fact, Enping and Qingyuan are not the only ones facing the problem of rising natural gas prices after the Spring Festival. Natural gas prices in Gaoyi, Hebei Province also recently experienced their first rise of the year. According to a staff member of a ceramics company in Gaoyi, the cost of industrial gas before the price increase was around 4 yuan/m³. After the price increase, the gas price was close to 6 yuan/m³, there is also the problem of insufficient supply, and the production lines of many ceramic companies have not resumed full production. The relevant person in charge of a ceramics company analyzed that the main reason for Gaoyi's tight gas consumption and rising gas prices is excessive demand. Data shows that Hebei's natural gas imports increased by 1.5 times from January to February.
There is no suspense that rising energy costs have once again set off a wave of price increases for ceramic tiles in the building ceramics industry, and the scope is gradually expanding. Especially in the past March, ceramic companies in Guangdong, Jiangxi, Hubei, Henan, Anhui, Shandong, Hebei and other production areas successively issued price increase notices. The prices of regular porcelain tiles, medium plates, and fully polished glaze categories increased from 0.05 yuan/ The price ranges from 2 yuan per piece to 2 yuan per piece, and the price increase for rock slab products is as high as 5 yuan per square meter or 5-10%. Some ceramic companies have issued price adjustment notices more than once since the beginning of the new year.
If raising the ex-factory price of ceramic tiles is a helpless move, then directly choosing to stop or reduce production due to cost pressure is really a helpless move. In this regard, some industry insiders said, "In the past few years, when the country was promoting coal-to-gas conversion, some companies complained that they could not afford to burn natural gas for more than 3 yuan per cubic meter. Now it has increased to 6-7 yuan per cubic meter. Those who did not have the capacity to do so originally Enterprises with competitive advantages will lose money as soon as they open the kiln. "A survey by the Foshan Ceramics Industry Association showed that as of the end of March, only 51% of Foshan's ceramic tile production lines were in operation.
Gaoan and Neihuang centralized gas supply
The advantages are gradually highlighted
On February 12, Jiangxi Gaoan production area resumed the use of centralized gas supply, and required all ceramic production lines in the ceramic base to be connected to centralized gas supply before July 1, and the self-made water gas generators were sealed. During the trial operation of the project, the ceramic enterprises in the park reported that the gas consumption effect was good, which was mainly reflected in the high cleanliness and stable air pressure of the centralized gas supply. In the previously issued "2022 Construction Ceramics Base Centralized Gas Supply Project Comprehensive Formal Production and Operation Implementation Plan", the basic gas price was set at 0.413 yuan/Nm³, which is roughly equivalent to natural gas 2.2 yuan/m³. The gas price is relatively reasonable.
On April 1, Jimin Trust (Gaoan) Clean Energy Co., Ltd. issued a notice on April 1, 2022From April 15th to April 15th, the local clean industrial gas supply price was 0.680 yuan/Nm³. This is the second time since March that Gaoan has raised the price of centralized gas supply. It is understood that from March 1st to 15th, the price of Gaoan centralized gas supply was 0.574 yuan/Nm³, which is equivalent to 3.06 yuan/m³ of natural gas based on calorific value conversion; from March 16th to 31st, the price of Gaoan centralized gas supply was 0.574 yuan/Nm³. 0.664 yuan/Nm³, which is roughly equivalent to 3.54 yuan/m³ of natural gas based on calorific value conversion, a month-on-month increase of 16.6%. The latest price this time is a slight increase of 2.4% on the original basis. Even so, the price of Gaoan's centralized gas supply is still the envy of ceramic companies in other production areas.
In addition to Gao'an, other ceramic-producing areas that implement centralized gas supply include Neihuang County in Anyang, Henan. In September last year, the clean industrial gas centralized gas production project of Neihuang County Ceramics Park with a total investment of 1.03 billion yuan officially fired the oven. The project is designed to produce 2.4 billion cubic meters of clean industrial gas annually, equivalent to a calorific value of 396 million cubic meters of natural gas, with an annual output value of approximately 850 million yuan. In February this year, Neihuang County Ceramic Park began to provide centralized gas supply to 11 ceramic companies, helping the ceramic industry resume work and production in a comprehensive and efficient manner.
It is worth mentioning that the ceramic companies in Neihuang County Ceramics Park have not received notice of gas price adjustment after the beginning of the new year. Li Chengfeng, secretary-general of the Henan Ceramic Industry Green Development Association and chairman of Anyang Ruimeida Clean Energy Co., Ltd., believes that the clean gas produced by the clean industrial gas centralized gas production project through circulating fluidized bed gasification technology is of great significance to the ceramic industry. It also creates certain competitive advantages for enterprises in the park.
Gas prices in Fujian and Guangxi have "falsely increased"
The official appeared to refute the rumors
A few days ago, a piece of news about "natural gas price increase" was circulated in the WeChat group of Quanzhou people. The message reads: "Starting from April 1, the price of natural gas will be raised from 2.82 yuan/m³ to 6.89 yuan/m³. The price of natural gas has increased significantly, and due to the severe impact of the epidemic, production costs have increased significantly. Due to the situation, Come on, a new wave of price increases is coming, please prepare early &rd."Subsequently, the Quanzhou Development and Reform Commission issued a "Statement on the Internet rumor that Quanzhou City's natural gas price will increase from 2.82 yuan/cubic meter to 6.89 yuan/cubic meter" on the official website, making it clear that the current natural gas sales price in Quanzhou City has not been adjusted.
The Quanzhou Development and Reform Commission stated that if natural gas prices need to be adjusted, relevant government functional departments will strictly follow the relevant provincial regulations and the relevant regulations on the pipeline gas price linkage mechanism and release them to the public through formal channels. But what is confusing is that nearly 200 ceramic companies in Nan'an and Jinjiang, Quanzhou, have received this "notice". If the natural gas price increase is false information, is there a phenomenon of gas companies raising prices privately?
On April 1, the Quanzhou Development and Reform Commission issued its latest response, stating that gas companies have no right to raise prices on their own. Price increases without the approval of the Development and Reform Commission are illegal, and gas companies are not allowed to limit corporate gas consumption under any excuse. At the same time, the Quanzhou Development and Reform Commission also interviewed the person in charge of Quanzhou Xinao Gas Co., Ltd. Once it is found that the staff of Quanzhou Xinao Gas Co., Ltd. or its affiliated companies have engaged in such behavior, it will be referred to the Market Supervision Administration and the Industry and Information Technology Department for investigation and punishment.
The price increase of natural gas in Quanzhou, Fujian Province has not yet settled, and something even more confusing has happened. A piece of news with exactly the same content about "natural gas price increase" has also been circulating in the circle of friends of people in Nanning, Guangxi recently. Suddenly, a long queue formed at the door of the Nanning Guantang Zhongran Business Hall. On March 30, the Guangxi Internet Reporting Center responded that after phone calls with staff from Nanning China Gas Company, it was confirmed that the news of "natural gas price increase" was a rumor. Nanning China Gas Company stated that it has not yet received a notice of natural gas price adjustment, and the specific situation is subject to government approval.
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Whether it is a "real increase" or a "fake increase", as the global environmental protection high-voltage line becomes stricter, the demand for LNG alternative fuel in all walks of life will continue to increase. At the United Nations Climate Conference COP26 held in November 2021, coal reduction was included in the climate convention for the first time. For the construction and ceramics industry, the era of coal-burning will become history. Only by resisting the pressure of wave after wave of "natural gas price increases" can ceramic companies survive the industry reshuffle.
