Development and Reform Commission Early Warning: Overcapacity in Coal Chemical Industry

China’s coal chemical industry seems to be falling into a turmoil: Traditional products have already had serious excess capacity, local companies are still in turmoil; emerging products are still in the ascendant, and even the assessments are still being tested, and the new excess threat is as close as it seems.

This situation is causing a high level of concern and concern at the national level.

Recently, the “Circular on Strengthening the Construction and Management of Coal Chemical Industry Projects to Promote the Healthy Development of Industries” (Development and Reform Industry [2006] No. 1350) (hereinafter referred to as the “Notice”) promulgated on the website of the National Development and Reform Commission, the six categories of projects were clearly suspended or stopped. Approved and filed.

Faced with the strange phenomenon in the development of the coal chemical industry, the National Development and Reform Commission raised the sword of the rule in its hands.

“Clearly put forward the coal chemical industry and systematically and completely regulate it. This is the first one in the NDRC's documents.” On July 17, relevant persons from the National Development and Reform Commission told the reporter.

The "Notice" pointed out that in the recent period, while the coal chemical industry was developing rapidly, there were also worrying problems. "In some places, ignoring the carrying capacity of resources, ecology, and the environment, there have been signs of blindly planning and competing to build coal chemical projects, which will have potential negative effects on the sustained, healthy, and steady development of the economy and society."

“In fact, such signs have already been exposed in calcium carbide, coke and other products.” Qian Pingfan, a researcher at the Industry Research Department of the Development Research Center of the State Council, told reporters.

The coal chemical industry includes coal coking, coal gasification, coal liquefaction and calcium carbide. According to the data provided by the National Development and Reform Commission, the production capacity of traditional coal chemical products such as calcium carbide and coke is seriously over-abundance.

At the end of 2005, China's calcium carbide production capacity was twice the output of the current year. The coke production capacity exceeds the domestic market demand by more than 70 million tons. From January to May this year, the production of calcium carbide and coke still increased by 33.9% and 24.2% respectively year-on-year.

A wave of waves has risen again. Driven by rising oil prices and high levels of operation, the blind development of coal-to-methanol, dimethyl ether, and other petroleum substitute products is gradually emerging. In 2005, China produced 5.36 million tons of methanol. According to incomplete statistics, the scale of methanol under construction is currently close to 9 million tons, and there are more than 10 million tons of planned and planned capacity.

"If all of these projects are put into practice, once the development of methanol processing technology and application market lags behind, it will inevitably cause a large surplus of production capacity." The National Development and Reform Commission issued early warning information to the nation.

As an emerging product in the emerging industry of coal chemical industry, although coal-based oil products and olefins are still in the stage of industrialization test and demonstration, the overcast of overcapacity is already in the making.

It is reported that in addition to Inner Mongolia, Yunnan, Heilongjiang, and Shaanxi that have been included in the national "Tenth Five-Year Plan", Shanxi, Shandong, Gansu, Guizhou, Anhui, and Henan are also eager to try, and almost all large-scale coal groups have carried out "coal-making. "Preparation of oil" project.

In response, the deputy director of the China International Engineering Consulting Company's petrochemical and textile business department said that the one-sided pursuit of oil substitution in China is worrying, and that "coal-to-oil" will be carried out all over the place, which may cause a new round of waste of resources.

In order to speed up the local economic development, some regions have resorted to resources as a means of attracting investment in a large scale, and the allocation and exploitation of resources are unreasonable. Individual companies even use the name of building a coal chemical project to take advantage of resources and take advantage of resources, and use coal resources. In some areas, the coal chemical industry has just started and existing coal resources have been minced.

The situation is not optimistic. The National Development and Reform Commission listed the top 10 rules for the coal chemical industry.

It is understood that five of the ten regulations were first proposed in the relevant documents. Among them, include "industry layout", "development priorities", "coal use", "water resources balance", "technical policy" and other aspects.

"Industry layout" proposed to encourage coal resources to continue to develop coal chemical industry, and to appropriately arrange the construction of coal chemical projects in coal-producing areas, restricting the development of coal chemical industry in the district. "Development priorities" proposed to encourage the development of coal-based chemical fertilizers and other products; steadily develop coal-oil products, methanol, dimethyl ether, olefins and other petroleum substitute products.

It is worth paying attention to the NDRC's emphasis on stopping the approval or filing of projects.

The "Notice" pointed out that before the development plan for local coal chemical industry regions is completed and confirmed by the National Development and Reform Department, the approval or filing of coal chemical projects is suspended; and coal chemical projects that do not meet industry access requirements are prohibited from being approved or filed. The various consumption targets of coal chemical projects must meet national (industry) standards or mandatory requirements.

According to Qian Pingfan's researcher, the drive for interest and the defects in the system have determined that, in addition to the above provisions, deeper institutional reforms are needed to achieve fundamental improvements.

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