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To Dissolve Overcapacity Should be in Accordance with Regulations

Tuesday, August 6, 2013
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Keywords:Overcapacity Calcium carbide

[Fellow]

[ferro-alloys.com] According to the enterprises list of eliminating backward capacity in 2013, we learnt that it all involved with 27 enterprises and eliminated 964,500 tons of calcium carbide backward capacity.

As the '12^th five-year' plan in China' ,it would eliminate the calcium carbide furnace whose capacity less than 12500KVA and 3.8 million tons of open-ended furnaces. In 2011, it all eliminated 1.38million tons of calcium carbide capacity. In 2012, the number was 1.25 million tons. So there was no doubt that the industry would complete the elimination duty in advance.

Calcium carbide overcapacity still was a huge handicap for the whole industries, so we could not stop the steps to eliminate the backward capacity. The new data showed that the calcium carbide capacity has reached 32.3 million tons, but the utilization was only 61.9%. In the former half year in 2013, the utilization slipped to 55% and the more than 60 enterprises choose to close down. As the capacity building and planned was continued to put into operation, it was estimated that the capacity would exceed 56 million tons in 2015, which would be far beyond the 30-40 million tons of annual apparent consumption.

In order to deal with the overcapacity problem, we not only should make firm determine to eliminate the backward production lines, but also should execute strictly the relevant policies and limit the new programs to start so that it could avoid going into the vicious circle ---more elimination, more overcapacity.

[Editor:editor]

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