The hottest market is high diving, and the reducti

The market plunged, and the reduction of value-added tax is difficult to eliminate the hidden worries of coal to ethylene glycol

from April 1, the state will reduce the value-added tax of all industries on a large scale. Please consult 13365312612 for details The value-added tax rate of the coal based ethylene glycol industry, which is applicable to the 16% tax rate, will be reduced to 13%, which is gratifying to the insiders. However, some experts said that the tax reduction could not completely extricate the coal based ethylene glycol enterprises from difficulties. With the help of the policy east wind, the country would reduce the value-added tax of all industries on a large scale from April 1. The value-added tax rate of the coal based ethylene glycol industry, which originally applied the 16% tax rate, will be reduced to 13%, which is gratifying to the insiders. However, some experts said that the tax reduction can not completely extricate the coal glycol enterprises from difficulties. With the help of the policy east wind, accelerating technological progress, improving product quality, and not blindly following the trend of the project is the realistic choice to extricate themselves from difficulties

since the fourth quarter of 2018, the high price of ethylene glycol has plunged, which has greatly reduced the profits of the coal based ethylene glycol industry. At present, most enterprises have lost money

"the reduction of value-added tax can reduce production costs and improve the business conditions of enterprises to a certain extent, but the effect is limited, and it is even more impossible for this method to specify the use of four types of samples to change the relationship between supply and demand, so as to completely extricate coal glycol Enterprises from difficulties." Hu Dawei, director of Finance and Assets Department of Shaanxi coal and chemical new energy Co., Ltd., said

it is understood that the coal based ethylene glycol industry is facing many challenges, such as the rapid growth of production capacity, the refinement of supporting policy limits for the new production capacity of the downstream polyester industry, the continuous rise of coal prices, the low operation of oil prices, and the impact of ethane routes

in terms of capacity growth, in 2018 alone, China added 2.22 million tons of coal (syngas) to ethylene glycol, bringing the total capacity of coal to ethylene glycol to 4.66 million tons/year; From 2019 to 2021, 33 coal (syngas) to ethylene glycol projects will be completed and put into operation in China, with a new capacity of 9.47 million tons/year. By then, the total capacity of coal to ethylene glycol will reach 14.13 million tons/year. Among them, the total production capacity of ethylene glycol projects (mostly coal based ethylene glycol) put into operation in 2019 alone reached 3.64 million tons/year, an increase of 34.5%. However, few new projects in its downstream polyester industry will be put into operation in the next three years

in terms of cost, at present, enterprises that produce ethylene glycol from coal through syngas oxalate hydrogenation will face not only the challenges of ethane cracking to ethylene and naphtha cracking to ethylene, but also the challenges of the new technology of producing ethylene glycol from coal based syngas formaldehyde/glycolic acid with lower cost

a survey shows that after the reduction of the value-added tax rate from April 1, the capital occupation and financial costs of coal glycol enterprises in the procurement, production and sales of raw and auxiliary materials will be reduced accordingly, and the competitiveness and profitability of products will be enhanced accordingly. However, the reduction of value-added tax is the reduction of the whole industrial chain. Because coal glycol has not formed a complete upstream (2) ultrasonic vibration grinding downstream industrial chain, the positive impact of the tax reduction is limited

accelerating technological progress, improving product quality and not blindly following the trend of projects are the realistic choices for the coal glycol industry to get rid of difficulties. Jin Yong, an academician of the Chinese Academy of engineering, and yaoyuangen, a researcher at the Fujian Institute of physical architecture of the Chinese Academy of Sciences, and other experts expressed such views

Jin Yong said that the breakthrough of core technology and the large-scale of key equipment can effectively improve the quality of coal based ethylene glycol products, reduce costs and increase profits. For example, Shandong Hualu Hengsheng 500000 T/a syngas to ethylene glycol plant, because the scale of a single set is more than twice that of existing enterprises, the investment of the plant is less, and the comprehensive energy consumption is reduced by more than 10% compared with the existing plant. At present, most coal based ethylene glycol enterprises have low profits or even losses, and the company can still achieve better profits

Yao Yuangen said that the decline in international oil prices and the high coal prices in China have reduced the cost advantage of coal to ethylene glycol over the oil route. However, with the improvement of the quality of coal based ethylene glycol products, the downstream polyester industry is improving its recognition. As long as enterprises continue to improve product quality and adopt new technologies to significantly reduce costs, coal based ethylene glycol still has strong competitiveness

he suggested that enterprises should give priority to adopting more stable, efficient and low-cost technologies and processes; Priority should be given to areas with rich coal and water resources and low energy costs to build coal glycol polyester textile integration projects to reduce risks and obtain higher profits