Trial and error of coal to ethylene glycol: challenges of low oil price in 2015 expansion year

market has been very eye-catching coal to ethylene glycol "first share" Danhua technology "5 published an annual report. After five years, Danhua technology is still struggling to get through the muddy road. Due to the lack of start-up caused by technology, Danhua technology's main business was still in loss in 2014.

Danhua technology is a "miniature" of China's coal to ethylene glycol. Data show that the overall operating rate of coal to ethylene glycol in 2014 is only around 45%.

with the oil price falling to the bottom, the economy of coal to ethylene glycol based on the exploration of economy in high oil price will be faced with severe challenges.

have been put into operation for five years, but they have not been able to get rid of the losses.

have not got rid of the losses. According to the year of Danhua science technology, the company realized 1.027 billion yuan of operating revenue in 2014, with a year-on-year increase of 38%; realized a net profit of 17.43 million yuan, turning losses into profits on a year-on-year basis. However, after deducting the extraordinary profit loss, the company has a loss of 15.49 million yuan, which mainly comes from a 66.71 million yuan government subsidy. However, compared with the loss of 181 million yuan after deducting the non recurring profit loss last year, the business situation of Danhua technology has been greatly improved. At the same time, the company's operating cash flow also increased by nearly 100 million yuan, indicating the trend of business improvement. In addition, the company announced that after the shutdown maintenance in June, the production load product quality of Tongliao Jinmei of Danhua science Technology Co., Ltd. were significantly improved, with the average load increased from 64% in the first half of the year to about 89% in the second half of the year.

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Tongliao Jinmei is the core enterprise of Danhua science technology. Tongliao Jinmei phase I 200000 ton coal to ethylene glycol project, the first coal to glycol production plant in China, was started in August 2007, completed put into operation at the end of 2009, the process was opened in December 2009. However, the attempt to fill the globe has not been smooth. After opening the process, Tongliao gold coal equipment has been running smoothly, start stop, maintenance for many times. In 2014, the average load was increasing significantly. This makes the company's operating costs soar. According to the annual report data of

, Tongliao gold coal produced 126600 tons of ethylene glycol in 2014, with a total cost of 537 million yuan. According to the calculation of Yahua consulting, an authoritative research institution of coal chemical industry in China, the ethylene glycol production cost of Tongliao Jinmei in 2014 was 4242 yuan / ton (including raw materials, labor wages, energy, depreciation others), which decreased by 1817 yuan / ton compared with 2013; meanwhile, the unit price of ethylene glycol was 5189 yuan / ton (excluding VAT), the gross profit rate was 17.7%.

according to the annual report, the primary task of Tongliao gold coal in 2015 is to strive to achieve the annual average production load of more than 85% of the designed capacity, annual sales of ethylene glycol 145000 tons, oxalic acid 55000 tons, the output rate of superior products stable above 98%.

coal to ethylene glycol accept the challenge of low coal price.

are important bulk organic chemical raw materials. Ethylene glycol is widely used. About 93% of ethylene glycol is used to produce polyester (polyester is the raw material of main textile chemical fiber) 3% is used to produce polyurethane. In the era of low oil price, the raw material of ethylene glycol production in the world is basically naphtha (petroleum downstream product) to ethylene glycol. For many years, China's ethylene glycol import dependence has been maintained at about 70%, ranking first in the domestic liquid chemical import dependence.

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