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First, the elimination of backward production capacity has not yet ended, and the supply of commodity calcium carbide may declin.
Second, in February 2022, the National Development and Reform Commission issued the "Implementation Guidelines for Energy Conservation and Carbon Reduction Transformation and Upgrading in Key Areas of High Energy-consuming Industries (2022 Edition)", which put forward clear goals for the energy saving and carbon reduction transformation and upgrading of the calcium carbide industr.
Third, the newly added production capacity is basically self-supportin.
Fourth, the elimination is still in progres.
Fifth, the downstream production will drive the consumption of calcium carbide, which will be tightened in the futur.