Where does the resorcinol industry go?

Under the "dual control" of energy consumption, the production and operation of many enterprises were affected, and the resorcinol market ushered in a temporary rise

"As of mid-to-early September, the resorcinol industry has been in a state of continuous loss

According to reports, domestic resorcinol companies are facing internal and external troubles

In fact, resorcinol has been effective in the past few years

It is reported that China’s main resorcinol production companies include Zhejiang Longsheng, Shandong Kesheng, Wuhai Shilian, Sichuan Lianlong, etc.

If all the above-mentioned devices are completed and put into operation, the total global resorcinol production capacity will be close to 90,000 tons/year, while the global resorcinol market demand in normal years is only about 55,000 tons/year, and the production capacity will be significantly greater than the demand

Downstream demand is in a downturn

The person in charge of the relevant company said that the sluggish demand is also an important factor in the "fading" of the resorcinol market

In 2020, the top three areas of China's resorcinol demand are rubber processing, wood adhesives, and dyes, accounting for 53%, 17%, and 8% respectively

For example, Zhejiang Province recently issued the "Fourteenth Five-Year Plan for Energy Conservation, Consumption Reduction and Optimal Allocation of Energy Resources in Zhejiang Province", which requires strengthening the structural adjustment of key energy-using regions, strictly controlling the scale of chemical production and other production capacity, and promoting the outward migration of the rubber and plastic products industry

In addition, the surge in raw materials has also greatly reduced the profits of tires and other rubber processing industries, and a large backlog of finished products

According to expert analysis, the trend of the hydroquinone market in the later period will still depend on domestic demand.

Continuous improvement of internal and external studies

In the case of overcapacity and sluggish demand, what can companies do to turn losses into profits?

Relevant experts stated that the goal during the "14th Five-Year Plan" period is to reduce energy consumption and carbon dioxide emissions per unit of GDP by 13.

Implementing energy consumption "dual control" is an effective way to force enterprises to upgrade their industries.

The person in charge of the relevant company said: “In the case of deteriorating energy tensions, controlling costs, eliminating outdated production capacity, and achieving energy saving and emission reduction are the keys to promoting the sustainable development of the resorcinol industry

　　"As the resorcinol industry continues to lose money, Zhejiang Longsheng, as a leading resorcinol company, will further focus on promoting the complete localization and improvement of the resorcinol industry chain externally, and focus on internally promoting the resorcinol industry chain.