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Looking at the development of coal chemical industry from PVC industry

April 01, 2022
In the long period of high oil prices, the concept of coal chemical industry has been hotly fired. Domestic companies have invested in new coal chemical industries such as coal-to-petroleum, coal-to-olefins, and methanol-to-dimethyl ether, even though they face unproven technology. There are various difficulties in investing huge amounts of money, but "doing chemical work with coal" is one of the unswerving development goals of many companies and local governments. At present, the coal chemical projects promoted by the media and enterprises mainly include the above-mentioned traditional coal chemical industries such as coke, coke, and coal tar. However, the calcium carbide process PVC project that uses coal as the main raw material is rarely mentioned. From the definition of petrochemicals and coal chemical industry, the classification is mainly based on the source of raw materials. Therefore, I believe that the use of coal and limestone to produce calcium carbide, and then the production of acetylene to synthesize vinyl chloride calcium carbide process PVC process line should be formally summarized in the scope of coal chemical industry. Below, the author will look forward to the prospects and trends of the development of the coal chemical industry by comparing the development of the calcium carbide process and the ethylene process with the PVC process in recent years.

——Cost advantage dominates

The development momentum of coal chemical industry is mainly due to the huge economic benefits brought by its cost advantage. In the era of low oil prices, under the extrusion of ethylene PVC, China's calcium carbide PVC enterprises survived difficultly, but with the long-term high price of oil and the rapid development of China's economy, the price of PVC has risen, with relatively cheap coal as the main raw material. The calcium carbide process PVC company has regained its vitality. At present, the newly built devices are mainly based on the calcium carbide method.

An example illustrating the role of economic benefits is coal-to-oil. As early as the 1930s, due to the shortage of crude oil, Germany had developed coal-to-oil technology. By the end of World War II, it had built 17 factories and produced more than 420 million tons of gasoline and diesel. However, due to the massive exploitation of oil in the Middle East and the relaxation of the international environment, low-cost oil flooded the market in large numbers, and the development of coal-based oil lost its economic viability, and large-scale production stopped. Therefore, it can be expected that as long as the price of oil remains high, the development of coal chemical industry will always be strongly promoted by enterprises and the market.

- product quality can not be ignored

The same product, using coal as raw material and petroleum as raw material, has much difference in quality? This is a concern for the market before accepting coal chemical products. For the PVC industry, the market price of calcium carbide process PVC is always lower than that of ethylene process PVC by hundreds or even thousands of yuan per ton. In addition to cost factors, the lower quality of calcium carbide process PVC due to different process routes is mainly the reason. At present, PVC is mainly used in the low-end areas such as pipes and sections in the Shangdong Stone Process, while PVC in the ethylene industry occupies high-end areas such as transparent products and high-grade film materials. Both parties compete fiercely in the cable and soft board markets. Product quality has become the main reason to restrict the introduction of calcium carbide PVC into the high-end market.

In addition to PVC products, a large number of new coal chemical projects under construction in China mainly consist of products from coal-to-oil projects, coal-to-methanol projects, and downstream olefins and dimethyl ether. Whether the quality of oil and olefins from coal can catch up with similar products in petrochemicals is an important factor for the market to accept them. If the quality is not enough, like calcium carbide method PVC, can only be applied to the relatively low-end areas, the economic benefits of the entire industry will be negatively affected. Therefore, the development of coal chemical industry, product quality needs attention.

- Environmental costs need to be weighed

One of the shortcomings of the calcium carbide process PVC process is that its production facilities have serious environmental pollution, and the amount of calcium carbide dust, calcium carbide slurry, and sulfur-containing alkaline waste water discharged from the device are large. On the one hand, it increases the cost of pollution treatment and reduces the economic benefits of the company. On the other hand, it also makes the approval of the project more difficult.


Similarly, other coal chemical industries also face the problem of weighing the local environmental carrying capacity. In order to save raw material transportation costs, coal chemical plants currently under construction are close to coal mines. In addition to the southwest region, most of the coal-producing areas in China are seriously deficient in water, and due to the long-term exploitation of coal mines, the environment and ecological structure are already very fragile. Coal chemical installations, whether they can provide enough water for production, are all important conditions that determine the long-term stable operation of the equipment. Therefore, environmental costs are also a factor that must be taken into account when developing coal chemical projects.

In general, the prospects for the development of China's coal chemical industry are good under the backdrop of high oil prices. Due to the huge cost advantage, if the quality can reach the same level as the petrochemical products, coal chemical products will have superior competitiveness in the market. If we can solve the problem of environmental pollution, it will further guarantee the long-term stable development of coal chemical companies.
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Author:

Mr. Ron Han

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+8615336365800

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