A few days ago, the reporter learned from a number of ceramic companies in Linyi, Zibo, Shandong, and so on. Recently, domestic LNG (liquefied natural gas) gas sources have been tight and prices have skyrocketed. The price of cubic meters, the gas price is as high as 6.5 yuan/m³. Affected by this, some ceramic factories had to stop production for maintenance ahead of time.

The price of LNG soared to 6.5 yuan/m³

As we all know, fuel cost has become the main factor affecting the production cost of various ceramic export products. Compared with ceramic factories that use coal-to-gas as fuel, the further increase in natural gas prices has greatly weakened the market competitiveness of gas-using ceramic companies. .

Up to now, the price of LNG in the north has risen from 4,300 yuan per ton earlier to 9,500 yuan. Affected by this, the price of industrial pipeline natural gas is more likely to follow up. At present, the price of pipeline natural gas of some gas companies in Linyi area has increased, and the price of pipeline natural gas in Zibo has not yet been adjusted.

As northern China is currently in the heating season, natural gas supply is also facing great challenges. It is understood that in recent years, the price of natural gas has risen in Shandong and other places at the end of each year, and ceramic companies have closed kilns in advance. For example, at the end of 2018, the price of pipeline natural gas in Zibo has increased by 20%, and ceramic companies have closed kilns more than 80%; Under this situation, for ceramic companies that have completed the “coal-to-gas” conversion, the rise in LNG prices has largely affected various gas-using ceramic companies Production costs.

Some ceramic companies stop production ahead of schedule

Although the gas prices of some northern ceramic companies have not yet adjusted, the pipeline natural gas supply is now facing challenges.

According to the reporter’s understanding, due to the continuous increase in LNG prices, some ceramic companies that originally planned to suspend production in January have now decided to suspend production early, otherwise the cost will be too high.

Not only Linyi, pottery enterprises in other regions of Shandong may also face early suspension of production. According to rough statistics, more than 30 ceramic companies in the north have closed their kilns due to avoiding peak production in winter. Only a few manufacturers are still in normal production, mainly producing polished glazed bricks, antique bricks, slabs, thick bricks, etc. High value-added products. In addition, as of December 18, two more ceramic companies have ceased production. It is understood that some ceramic companies currently in production also plan to suspend production in the near future.

A person in charge of Linyi ceramic enterprises said that compared with Zibo, Linyi was more affected by the increase in natural gas prices. “Most ceramic enterprises in Zibo have sufficient inventory and their products are more differentiated. Mainly for interior wall tiles. Due to the current fierce market competition, most ceramic companies are in a price war. In order to survive, the manufacturers are almost operating at a guaranteed cost. It is precisely because of this that many manufacturers in Linyi basically do not have inventory, and they are quick to produce and sell. Excessive natural gas growth will have a greater impact on Linyi ceramic enterprises.

In the peak period of delivery at the end of 2020, when various factors cause product prices to rise, it is a test for every ceramic foreign trade enterprise. wellwares have the courage to face various challenges. As one of the largest exporters of ceramics in the north, we are committed to bringing high-quality services to our buyers at all times. When the factory stops production on a large scale, wellwares still insists on production to ensure that customers can receive the products in time . At the same time, we support preparing inventory for you in advance to prevent all possible changes. Guarantee the delivery time for you at any time. Provide you with one-stop sourcing.