The Impact of "Dual Control of Energy Consumption" in Cellulose ether (HPMC & MHEC) and Redispersible polymer powder
industry.
Dear customers, you may already note that the price of cellulose ether and
redispersible polymer is in the sharp increasing situation in the past month.
This is caused by a combination of policy factors and other force majeure
factors.
Q:What is the new policy-"Dual control of energy consumption” in China?
A:SHANGHAI, Sep 22 (SMM) – Since China established the targets of carbon
peaking by 2030 and carbon neutralisation by 2060 (hereinafter referred to as
the "dual carbon target"), domestic local governments have gradually increased
the dual control policies on energy consumption. The imbalance between supply
and demand of commodities caused by power rationing has drove up the prices and
manufacturing costs rapidly.
Q:How does this policy affect the cellulose ether and redispersible polymer
powder industry?
A:As you may know that, China’s current main source of electricity supplying
is still coal. But the carbon emissions from burning coal are huge. As per the
policy” Dual control of energy consumption”, government started to restrict the
electricity consumption of enterprises.
It led to a significant drop in the total production of basic chemical raw
materials.
For example, one of the basic raw material of cellulose ether(HPMC/MHEC) is
refined cotton.
According to the report of the China Cotton Association, as of October 7,
Xinjiang’s cumulative processing volume was about 179,000 tons, a year-on-year
decrease of 57%, and the inland processing volume was 3720 tons, a year-on-year
decrease of 40%.
The sharp reduction in the supplying of raw materials has led to the continue
rising price.
There are many cellulose ether producers face the problem of shortage of raw
materials encountered. Delayed delivery and even terminal supplying often
occur.
In Redispersible polymer powder industry, the situation is similar. The most
important raw material of RDP is emulsion. But emulsion production is belong to
a kind of heavily polluting industry. So impact by the policy, the producers
face production cuts or suspensions. It made the RDP producers meet big problems
in raw material supplying.
Q: How does Maissen keep stable supplying for cellulose ether(HPMC / MEC) and
redispersible polymer powder(RDP) in current situation?
A: Our new plant in GanSu Province already started producing now. GanSu
Province is located in the northwest of China which is one of provinces with the
lowest carbon emissions. So it is less affected by the new policy.
Meanwhile, In order to guarantee a stable raw material supplying, we prepaid
large amounts of cash in advance to suppliers.
Q: Suggestions to partners?
A:
-Making order plan in advance, allow reasonable extra time for production and
shipping.
-Sharing the market situation with your clients in time. Discuss order plan
in advance.
-Don’t stop the market development. We are always here for supporting and
samples for testing is welcomed. Order could be confirmed after the situation
get better.
-Follow up the market price changes, In the price increasing process with
opportunity also.
Jinan maissen new material co.,ltd.
www.maissen-hpmc.com
info@mailose.com
