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In the past two days, a news widely reprinted on the Internet: “Jiangsu Provincial People’s Government on the coastal chemical park” 141 “the implementation of the implementation of the project of environmental management of the draft” shows that Jiangsu coastal cities of Lianyungang, Yancheng, Nantong three chemical park dyestuff intermediate projects are included in the “prohibited category, are not allowed to approve” and “eliminated category, has been built to shut down the project” two categories.

This has caused an uproar in the dyestuff industry. The reporter asked the relevant business people to confirm, they said there is indeed this matter.

No hope of resuming production? The dyestuff industry may cause a huge shock!

Business people said, if the content of the discussion draft becomes a reality, then not only the coastal chemical park in Jiangsu Province can no longer build new dyestuff intermediate projects, the existing dyestuff intermediate enterprises will also be shut down. Especially the dyestuff intermediates enterprises in Lianyungang and Yancheng three major chemical parks that are being shut down for rectification will have no hope of resuming production.

△ Lianyungang urgently called a halt to the chemical park in Gouyun Gounan

Industry insiders say that if the opinion is passed, the domestic dyestuff (dyestuff intermediates) industry may cause a huge shock. Leapfrog and Jihua Group’s H acid plants in Jiangsu may be closed. Other dyestuff producers such as Yabang, Haixiang Pharmaceutical and Jiangsu Wu will also face considerable pressure to consolidate. The latter three have production bases in northern Jiangsu that are currently undergoing shutdown and consolidation.

Analysts believe that after three years of supply-side reshuffling in the dyestuff industry, small capacities are being cleared out one after another, and the industry will further contract supply under high pressure of environmental protection, with a steady rise in demand.

Interviewed dyestuff intermediates companies also said that, because the region involved in some varieties of dyestuff intermediates in the country occupies an important position, the closure of the project may cause supply tension, product prices rise, some products need to rely on imports, the cost of the downstream textile industry will increase significantly, resulting in the loss of international competitiveness of clothing and textile products, China’s textile industry is also a heavy blow.

Dyestuff prices soar, downstream printing and dyeing under pressure

Due to the environmental protection pressure caused by the shutdown of enterprises, market supply tension, last week reactive dyestuff and its upstream intermediate H acid are significantly increased prices, including reactive dyestuff (mainstream black) offer from 33,000 yuan / ton to 43,000 yuan / ton, an increase of 30.3%; while H acid from the previous offer of 50,000 yuan / ton to 80,000 yuan / ton, an increase of up to 60%.

In addition, reactive dyes another major intermediate para-ester prices are also at a high level. H acid and para-ester are both key intermediates in the production of reactive dyes, and the combined cost of the two in reactive black accounts for more than 60%.

This significant price increase of H acid is not the first time. during July 2013 ~ June 2014, several domestic core H acid including Jiangsu Mingsheng (subsidiary of Leapfrog), Jiangsu Jihua (subsidiary of Jihua Group) and Hubei Chuyuan had also stopped production due to environmental pressure. Finally, the price of H acid rose from a low price of about 30,000 yuan/ton all the way to a high of 150,000 yuan/ton within a year.

Dyestuff prices soared, which originally shouldered the burden of energy saving and emission reduction of printing and dyeing enterprises caused a huge impact, printing and dyeing enterprises have no choice but to raise the dyeing fee.

Industry leaders are speaking out

Chen Xiaoyong, chairman of Jihua Chemical.

The construction of ecological environment should be a combination of detachment and blockage. The executive branch should not only strictly enforce the law, but also support the promotion of clean production processes and environmental management technologies through strong policy leadership.

To improve the level of environmental protection in the dyestuff industry, it should be policy-led, consistent in the caliber of law enforcement in all provincial and municipal jurisdictions, allowing enterprises with a spirit of innovation and attention to environmental protection investment to compete and develop in a reciprocal environment, resolutely eliminating small, scattered and disorganized enterprises, avoiding the phenomenon of bad money expelling good money, encouraging enterprise technology innovation, supporting enterprises to apply new technologies and new process technology reform, and cultivating a number of industry model enterprises (projects) to ensure the healthy and orderly development of the dyestuff industry.

Duogang Zhou Vice General Manager of Yabang Dyestuff.

The government should support enterprises that meet national emission standards and sanction small, scattered and disorderly enterprises, and both types of enterprises should be treated differently.

In addition, the definition of dyestuff intermediate projects in the discussion draft is unclear. Does the project here refer to the production of intermediates alone, or does it include those for the enterprise’s own use? Since three dyestuff intermediate projects in Lianyungang, Yancheng and Nantong are part of the supply chain for their own use, if the discussion draft is adopted, the production of dyestuff intermediate projects in other areas will be difficult to make up for the loss of supply cut in these three areas.

The opinion of the discussion, so far there is no participation of enterprises, the early also did not seek the views of enterprises. Enterprises are now very passive and more frightened. I hope the government can give enterprises some opportunities to express themselves when formulating policy measures.

Duan Xiaoning, Chairman of Jiangsu Dipu Technology Co.

The construction of ecological civilization is not the responsibility of a certain industry in a certain region, everyone has an obligation. The repellent migration of polluting enterprises is itself aberrant development. In order to build a healthy and orderly market and environment, it is necessary to take the same standard requirements as a prerequisite for the benign development of law-abiding and quality enterprises to meet the standards.

The relevant dye intermediate produced by Diepo Technology in Lianyungang City, Jiangsu Province is 2,4-dinitrochlorobenzene, with a capacity of 80,000 tons/year, which dominates the industry and accounts for about 70% of the market share. The production process of this product is prepared by tandem countercurrent continuous nitrification technology, which is the first continuous nitrification production line of chlorobenzene in China, and the only continuous nitrification production line of 2,4-dinitrochlorobenzene in China promoted by the Ministry of Industry and Information Technology in the 12th Five-Year Plan, and the first one to achieve clean production among global sulfide dyestuff enterprises.

Pesticides and dyestuffs, Chinese people can change from relying on imported products to relying on our production all over the world, and we can definitely improve safety and environmental protection. Products can be world-class, safety and environmental protection must also be able to do world class.

The “one-size-fits-all” approach is open to question

Some enterprises through a lot of investment, upgrading, has reached a high level of environmental safety, this “one-size-fits-all” approach to the closure of compliant, large-scale intermediate production enterprises less than fair.

And the development, implementation and implementation of the document has regional limitations, only in Jiangsu Province, along the coastal area within the implementation, rather than the whole industry-wide implementation. In order to let the law-abiding quality enterprises to meet the standards of benign development, to ensure the competitiveness of products, to create a healthy and orderly market and environment, need to be the same standard requirements as a prerequisite.

Otherwise, not only does not serve the purpose of supporting the best and eliminating the bad, but also creates an environment of unfair competition. I hope the government will not harm these companies that comply with the law in terms of environmental protection.

What companies are most worried about now is that the state will eventually shut down the entire park, which would be extremely unfair to the compliant companies in the park. The state should set standards for the environmental treatment capacity of the park, and the park should also remove some environmentally substandard enterprises in real time, so that one or some non-compliant enterprises do not disrupt the entire park.

Good news! The central government issued a document: prohibit one-size-fits-all

May 28, the Ministry of Ecology and the Environment issued a document “to prohibit environmental protection” one size fits all “work views. Strictly prohibit “all shut down” “first stop and say” and other perfunctory response practices, and resolutely avoid centralized shutdown shutdown and other simple and brutal behavior.

In any case, environmental regulation continues to be strict is the general trend. But I also hope that the government rectification is well thought out, do not indiscriminately implement centralized shutdown shutdown shutdown production and other “one-size-fits-all” behavior, to the people’s normal production and life bring negative impact.