Blowing agent companies squeezing money out by raising prices

Since December, domestic ADC foaming backbone production enterprises have increased the export prices of their products, priced at more than US$2,000/tonne. This is after July of this year, companies once again raise their export prices. According to the reporter's understanding, the reason for the price increase of enterprises is to relieve the cost pressure brought by the increase in investment in environmental protection.
ADC foaming agent (Azodicarbonamide, abbreviated as ADC) is used as an organic fine chemical product, widely used in the fields of polyethylene, polyvinyl chloride, polystyrene, polypropylene ABS resin, etc., for the production of various foam products. . ADC has the characteristics of non-toxic, non-discoloring and non-deteriorating. At present, there are no substitute products in the international and domestic markets. With the increasing annual demand for ADC foaming agent in recent years, China’s production scale has been increasing at a rate of around 15% per year since 2004. This year's output will reach 135,000 tons. In the first eight months of this year, exports were close to 50,000. Tons, has become the world's largest producer of ADC foaming agents and exports the most. In recent years, the prices of urea, sulfuric acid, liquid caustic, and liquid chlorine, which are raw materials for the production of ADC foaming agents, have risen steadily. However, the prices of ADC products have been fluctuating at low levels, and companies have been at a low profit or even losing money.
Now, there is another problem that has caused the blowing agent production company to “make worse”.
Due to the current widespread use of hydrazine hydrate synthesized by the urea method as the raw material for the ADC foaming agent, the yield is low and the energy consumption is large. Therefore, the pollution is heavy and the environmental protection of the product has not been completely solved. In June of this year, the pollution problem of the foaming agent manufacturing enterprises was caught by the reporter of the “focus interview” column of CCTV and “current”. Under this circumstance, the pollution problem of foaming agents has caused concern of all parties. In August and October, the State Environmental Protection Administration and the Ministry of Science and Technology also conducted research on the environmental protection issues of ADC foaming agents. The foam-making company suddenly realizes that money has been earned by foreigners and that pollution remains in the country. It is still they who pick up the mess. "Not that we don't want to stop the pollution. It is because the profits are too low. We don't have the money to invest in environmental protection." The CEO of a company told reporters. According to Kong Cuiqin, director of the ADC Foaming Agent Committee of the China Chlor-Alkali Association, the foaming agent companies have to increase pollution costs by 2,000 yuan per ton, which accounts for over 13% of ADC production costs.
In addition to price increases, there are other ways? Thus, at the end of July this year, domestic export-oriented production companies invariably raised the price of their products by US$200/tonne. Immediately afterwards, prices were raised again in December. “Because according to the previous low prices, the production companies can not afford to invest in environmental protection. This is the reason we often raise prices.” In an interview with reporters, the deputy general manager of Fujian Longhua Chemical Company Wei Yuanzhou, general manager of Jiangxi Dianhua Assistant Hu Wenfu told reporters in this way.
According to the reporter's understanding, the domestic backbone enterprises of ADC have taken many measures to control pollution. For example, Longhua Chemical Co. has invested more than 10 million for end treatment. As the largest ADC foaming agent manufacturer in China, Jiangsu Thorpe Co., Ltd. has invested more than 40 million yuan in wastewater treatment facilities. The company has basically adopted measures such as the adoption of highly efficient water-saving washing devices and precision filtration. Solve the problem of excessive ammonia in wastewater. However, the pollution control of most companies is still low.
After two price increases, many companies launched pollution control operations with the money they squeezed out. According to Ma Hanbin, director of Longhua Technology Development Center, recently the company is conducting research on ammonia removal and total emission reduction. Sun Yunxia, ​​deputy general manager of Jiangsu Thorpe Co., also told reporters that because the company’s ammonia recovery system is not yet complete, the company is still developing new technologies. At the same time, in order to prevent the generation of pollutants from the source and develop new cleaning processes, the company is currently working on technologies such as hydrazine hydrazine extraction and distillation purification. "After increasing export prices again, we have the profits and the ability to continue to invest in environmental protection. For us, pollution control funds can only be so raised, or where?" Some company officials said so.

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