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High energy consuming industry is struggling Back ->

Time: 2018-01-18

In recent years, China's soaring economy brings the subsequent problems of severe environmental pollution. With Chinese government puts more efforts on environmental protection, environmental protection bureau have frequently inspected and stationed all over the country for environmental protection. And furthermore, they strengthened the management of mines that may cause environmental pollution. On one hand, they shut down the high-polluting mines, on the other hand, they carry out more strict rules and regulations to limit production capacity of mines for environmental production and emission reduction.


Minerals in extensive mode of raw materials mining, processing industry bear the most pressure. Magnesite, corundum, bauxite and other mineral prices greatly rises due to the sharp increase of demand and insufficient supply. Compared with the same period last year, prices of Magnesite rise 55%, and bauxite more than 25%. , Henan and Shanxi are the main producing areas of bauxite resources. With the growing strict environmental policy, aluminium oxide related industries (cement and refractories etc.) are worried about their raw materials supply. In addition, China has implemented supply side reform policy in aluminum, and the major aluminum enterprises have cut their output, while many small aluminum manufacturers went bankrupt. Thus the bauxite supply are in shortage, which causes a soaring price. Bauxite manufacturing are greatly affected. The mineral production enterprises of the main mining area all shut down during the nineteenth National People's Congress and the National Games of the PRC.


With the continuous improvement of Environmental protection standards, the survival of refractory enterprises are meeting severe challenges. The small-scale & high-energy consumption refractory enterprises are gradually eliminated, while large and medium-sized enterprises cost more in environmental protection investment, so their operating costs also doubled. With the recovery of iron and steel, cement, nonferrous metals and other industries, refractory demand increases significantly on bauxite consumption.


With the strengthening of environmental protection efforts, the Party Central Committee composed of more than 100 inspection teams will inspect all over the country, focusing on paper and packaging and printing industry from September 1 2017 to the end of March 2018. If these manufacturers want to survive, they will have to buy advanced equipment and invest a lot of manpower and material resources to control the pollution of the environment, which will lead to a great increase in the operating cost.

In addition, under the impact of the current global economic environment, in order to survive, the Chinese import & export enterprises’ profit rateprofit rate have generally been reduced to the lowest. What’s worse, recently the exchange rate of the RMB continued to fall, leading to Chinese enterprises’ final settlement amount substantially shrunk, which affected the import & export enterprises a lot.

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