Electricity drives up calcium carbide costs

The production cost of calcium carbide is mainly divided into raw material cost and power cost. In 2021, the high factory price of calcium carbide has become the focus of attention of various related industries, and the cost of calcium carbide is also rising, but the high factory price has weakened the attention to the cost end. We just from the price level, high calcium carbide factory price can fully support high cost.

However, it is understood that in 2021, frequent power rationing and load adjustment lead to low start of some production enterprises, in addition to raw material costs, financial costs, device costs, labor costs and even single consumption have increased, but the enterprise is in a loss state. So let's look at the change of the main cost of calcium carbide.

Proportion of calcium carbide main cost in 2020

In the production process of calcium carbide, the power demand for a single ton of calcium carbide is 3200 KWH, so in the cost proportion in 2020, the power cost is the main cost of the production process.

Proportion of calcium carbide main cost in 2020.9

The cost of electricity is increasing as we move into 2021. But in the middle and late September, the price of orchid carbon rose rapidly, the mainstream factory price to 3400 CNY/ton, compared with the same period last year growth of 386%, orchid carbon cost increased rapidly.

Proportion of calcium carbide main cost in 2020.10

On September 28, The Development and Reform Commission of Inner Mongolia Autonomous Region issued a draft for soliciting opinions on clarifying the guaranteed price of electricity for power market transaction users in Mengxi region. The specific requirements for implementing the guaranteed price are as follows: The bottom guarantee price is composed of the electricity transmission and distribution price of the corresponding power voltage grade of power users (two-part system price includes the basic price), the electricity price of catalog sales (excluding governmental funds and additional) 1.8 times, governmental funds and additional. The peak-valley time and power rate adjustment of power users shall be implemented in accordance with relevant regulations.

After the policy was issued, Ulanqab region signed relevant agreements on 15th, starting from September 26th, the electricity charge will increase by 0.25 yuan/KWH. According to the calcium carbide per ton of 3200 KWH electricity, the cost will increase by 800 CNY/ton, and the cost will rise again.

Overall, the cost of calcium carbide in 2021 is rising, and the pressure on production enterprises is also increasing. At present, the factory price of calcium carbide is at a high level, but in the environment of cost and tight supply, the market is expected to remain at a high level.