The supply and demand structure of the calcium carbide industry is stable and will develop in a green and sustainable direction

Calcium carbide is an important chemical raw material produced from coke and limestone at high temperatures. Its main component is calcium carbide (CaC2), which is an inorganic compound. It is a white crystalline powder and the industrial product is a gray-black lump. Calcium carbide can be divided into agricultural grade calcium carbide, industrial grade calcium carbide and laboratory grade calcium carbide according to different uses.

The upstream of the calcium carbide industry chain is the supply of raw materials and energy such as coke, calcium oxide, and electricity; the midstream is the production of products; the main downstream products are polyvinyl chloride (PVC), 1,4-butanediol (BDO), and polyvinyl alcohol. , vinyl acetate, chloroprene, etc. Among them, polyvinyl chloride is the main consumer area of ​​calcium carbide, accounting for more than 80% of the demand. As my country’s urbanization process continues to advance, national living standards continue to improve, the demand for polyvinyl chloride continues to grow, and production capacity is gradually released, which will further promote the development of the calcium carbide industry. In 2022, there will be more than 70 polyvinyl chloride manufacturers in my country, with a production capacity of more than 28 million tons.

According to the “2023 Calcium Carbide Industry Investment Prospects Forecast and Investment Strategy Suggestions Report” released by the Industrial Research Center, my country is the world’s number one As a major producer of calcium carbide, the market supply and demand structure is relatively stable, and it has been in a state of oversupply for a long time. Under the macro-control of national policies, the structure of the calcium carbide industry will be gradually optimized and the problem of overcapacity will be gradually alleviated. In 2022, my country’s calcium carbide production will be approximately 27.8 million tons, and the demand will be close to 27.7 million tons.

From the perspective of industry distribution, the northwest region is rich in coal and other resources, and the local government provides policy encouragement and support to the calcium carbide industry. Therefore, there are a large number of calcium carbide production enterprises and the production capacity is relatively concentrated. In 2022, the northwest region’s calcium carbide production capacity will account for more than 50%, ranking first, followed by North China, accounting for nearly 40%.

The calcium carbide industry is a high-energy-consuming, high-pollution industry and one of the key energy-consuming industries in my country. In recent years, the country has introduced a number of policies to promote energy conservation and emission reduction in the calcium carbide industry and to develop in a green and sustainable direction. In November 2021, the Ministry of Industry and Information Technology issued the “14th Five-Year Plan for Industrial Green Development”, proposing to implement the “dual control” goals of energy consumption and carbon emission intensity control requirements, and promote the reduction, intensification, and green development of the heavy and chemical industry , strictly control the new production capacity of urea, ammonium phosphate, calcium carbide, caustic soda, yellow phosphorus and other industries, and new projects should implement equal or reduced replacement of production capacity. In February 2022, four departments including the National Development and Reform Commission jointly issued the “Implementation Guidelines for Energy Saving and Carbon Reduction Renovation and Upgrading of the Calcium Calcide Industry”, which clearly stated that by 2025, the proportion of production capacity above the energy efficiency benchmark level in the calcium carbide industry will reach 30%, and the industry’s energy saving and carbon reduction effects will be significant. Green and low-carbon development capabilities have been greatly enhanced.

Industry analysts said that the calcium carbide industry is a technology-intensive industry, and leading companies occupy a large share of the market by virtue of their high technical strength and brand influence. Partial market share, industry concentration is high. At present, the main domestic calcium carbide manufacturers include Inner Mongolia Yihua Chemical Co., Ltd., Sichuan Mengjiang Electrochemical Co., Ltd., Inner Mongolia Yidong Group Dongxing Chemical Co., Ltd., Inner Mongolia Shuangxin Energy Chemical Co., Ltd., etc.