In 2007, the market for barium sulfate in China was hot and the products continued to be tight. However, the production companies did not obtain sufficient profits from the bull market. High cost, relatively backward equipment, and increased environmental pressures have made the production and business activities of many barium sulfate enterprises difficult. This is the information that the reporter learned from the recent meeting of some manufacturers in the national barium sulfate industry.
Many stakeholders from Shanxi, Shaanxi, Hebei, Guangxi, Hunan and Chongqing have stated that although in 2007 all enterprises' barium sulfate products achieved zero inventory, the net result was a meagre profit, even half The above companies are in a loss situation. They analyzed that the main reason for the low profits and even the loss was due to the high production costs caused by the sharp price rise of coal and raw material barite; on the other hand, the current barium sulfate products are mostly extensive production. The proportion of fines and fines is low, and the low-tech content of the product determines its low profit.
According to reports, at present, there are only 89 domestic producers of barium sulfate with an annual production capacity of over 10,000 tons and a certain scale, and the annual output is about 200,000 tons. Among them, 75% are used in the paint industry, and about 20% are used in the plastic, rubber, and ink industries. In recent years, the rapid development of the powder coating industry has promoted the expansion of domestic demand for barium sulfate and accelerated the development of the industry. In particular, traditional barium sulphate-producing countries are affected by depletion of ore veins, rising energy costs, and environmental pollution. The production of barium sulfate has been declining year by year, making the export of barium sulfate in China an upward trend. Since 2001, the annual growth rate of China's barium sulfate exports has been above 10%. In 2007, the export volume reached 58,000 tons.
Relevant experts predict that during the "Eleventh Five-Year Plan" period, China's economic growth rate will remain at around 8%. As the pillar industry of China's national economy, building materials and automobile industry will continue to maintain a steady and rapid growth in the next 5 to 15 years. As a functional additive for powder coatings, rubber, plastics and other products, barium sulfate will continue to grow rapidly. It is expected that the growth rate of China's barium sulfate market demand will be higher than the average level of the international market. By 2010, domestic demand will exceed 30 to 35 tons, accounting for about 60% of the world's total demand.
However, due to the relatively extensive development model, the expansion of the market size of barium sulfate is not directly proportional to the increase in the economic efficiency of enterprises. The low profitability of many high-production companies in 2007 is a strong testimony. Into 2008, rising coal prices, tight mineral resources, and rising prices of raw materials for thenardite and labor costs have caused the production cost of barium sulfate to continue to increase substantially. According to the person in charge of a company in Hunan, the company’s production costs for tons of products in 2008 were about 40% higher than in 2007.
At the same time, due to the relative backwardness of the production technology and equipment of barium sulfate, it is difficult to invest funds to improve equipment in the current situation of low profit or loss of the company; coupled with the high pollution and high energy consumption of barium sulfate, the company's environmental protection investment The pressure is also great. As such, it has made domestic barium sulfate companies have to make a determined effort to change their business models and growth methods, and they are really gaining real profits in the promising barium sulfate market.
It is worth noting that at the workshop of some manufacturers in the national barium sulfate industry, the major domestic barium sulfate enterprises reached a consensus: To increase technical equipment and invest funds for environmental protection and energy conservation, it is necessary to ensure that the market price of barium sulfate products has a reasonable increase. Interval; We must resolutely oppose low-cost dumping, and actively adjust the product structure to enhance the competitiveness of enterprises. This makes people see that the stressful barium sulfate market will usher in a new turning point.
Many stakeholders from Shanxi, Shaanxi, Hebei, Guangxi, Hunan and Chongqing have stated that although in 2007 all enterprises' barium sulfate products achieved zero inventory, the net result was a meagre profit, even half The above companies are in a loss situation. They analyzed that the main reason for the low profits and even the loss was due to the high production costs caused by the sharp price rise of coal and raw material barite; on the other hand, the current barium sulfate products are mostly extensive production. The proportion of fines and fines is low, and the low-tech content of the product determines its low profit.
According to reports, at present, there are only 89 domestic producers of barium sulfate with an annual production capacity of over 10,000 tons and a certain scale, and the annual output is about 200,000 tons. Among them, 75% are used in the paint industry, and about 20% are used in the plastic, rubber, and ink industries. In recent years, the rapid development of the powder coating industry has promoted the expansion of domestic demand for barium sulfate and accelerated the development of the industry. In particular, traditional barium sulphate-producing countries are affected by depletion of ore veins, rising energy costs, and environmental pollution. The production of barium sulfate has been declining year by year, making the export of barium sulfate in China an upward trend. Since 2001, the annual growth rate of China's barium sulfate exports has been above 10%. In 2007, the export volume reached 58,000 tons.
Relevant experts predict that during the "Eleventh Five-Year Plan" period, China's economic growth rate will remain at around 8%. As the pillar industry of China's national economy, building materials and automobile industry will continue to maintain a steady and rapid growth in the next 5 to 15 years. As a functional additive for powder coatings, rubber, plastics and other products, barium sulfate will continue to grow rapidly. It is expected that the growth rate of China's barium sulfate market demand will be higher than the average level of the international market. By 2010, domestic demand will exceed 30 to 35 tons, accounting for about 60% of the world's total demand.
However, due to the relatively extensive development model, the expansion of the market size of barium sulfate is not directly proportional to the increase in the economic efficiency of enterprises. The low profitability of many high-production companies in 2007 is a strong testimony. Into 2008, rising coal prices, tight mineral resources, and rising prices of raw materials for thenardite and labor costs have caused the production cost of barium sulfate to continue to increase substantially. According to the person in charge of a company in Hunan, the company’s production costs for tons of products in 2008 were about 40% higher than in 2007.
At the same time, due to the relative backwardness of the production technology and equipment of barium sulfate, it is difficult to invest funds to improve equipment in the current situation of low profit or loss of the company; coupled with the high pollution and high energy consumption of barium sulfate, the company's environmental protection investment The pressure is also great. As such, it has made domestic barium sulfate companies have to make a determined effort to change their business models and growth methods, and they are really gaining real profits in the promising barium sulfate market.
It is worth noting that at the workshop of some manufacturers in the national barium sulfate industry, the major domestic barium sulfate enterprises reached a consensus: To increase technical equipment and invest funds for environmental protection and energy conservation, it is necessary to ensure that the market price of barium sulfate products has a reasonable increase. Interval; We must resolutely oppose low-cost dumping, and actively adjust the product structure to enhance the competitiveness of enterprises. This makes people see that the stressful barium sulfate market will usher in a new turning point.
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