The Dilemma of Refractory Production in Henan Province due to Dual Environmental Pressure and Coal Mine Accidents
Publication time:
2023-10-13
On June 6th, news reported that a sudden explosion of coal and natural gas occurred in Hebin City, Henan Province, resulting in the death of 8 people. This incident has undoubtedly become another heavy smog under strict environmental control for the production and operation of refractory materials, products, especially kiln enterprises in Henan Province. At present, most regions of Henan Province have stopped producing raw materials and durable goods for safety inspections.
On June 6th, news reported that a sudden explosion of coal and natural gas occurred in Hebin City, Henan Province, resulting in the death of 8 people. This incident has undoubtedly become another heavy smog under strict environmental control for the production and operation of refractory materials, products, especially kiln enterprises in Henan Province. At present, most regions of Henan Province have stopped producing raw materials and durable goods for safety inspections.
In a survey of the production situation of young bricks in 2020, the durable material window found that the capacity utilization rate of most light brick enterprises in Henan Province is below 50%, and they are in a state of shutdown for 6 months, mainly due to environmental control. The price of refractory products has remained stable for a long time, with fluctuating fuel and raw material costs. Now, facing the transformation of environmental protection equipment, it will become a key test of cost pressure for enterprises.
The air pollution transfer channel in the important control areas of Henan Province is generally between October and March next year, and the enterprise is in a semi shutdown state. In addition, the coal mine accident caused the shutdown, which further shortened the production time. At present, environmental ratings above level B are not regulated, but the ratings of local small and medium-sized enterprises are mostly lower than level C. This round of environmental transformation ratings is crucial for local refractory material production enterprises. Firstly, Investment in environmental protection equipment will lead to capital protection or even capital losses, and secondly, the rating results will directly affect the direction of the next overall market. Enterprises that meet environmental standards can produce normally, but not meeting the standards can lead to production stoppage and excessive equipment investment in small and medium-sized enterprises.
