China's sulfuric alkali market has been experiencing a supply shortage for the fourth consecutive year, with prices reaching record highs. However, beneath the surface of this booming industry lies a hidden crisis. According to the Glauber's Sulfide Branch of the China Inorganic Salt Association, the sulfuric alkali sector is facing significant challenges in 2008 due to rising raw material costs and increasingly stringent environmental regulations. These pressures are pushing some manufacturers toward shutdowns, signaling a potential industry shake-up.
Since 2005, domestic demand for sulfuric acid has steadily grown, alongside production capacity. By the end of 2007, total annual production capacity had reached 700,000 tons, with actual output hitting 528,000 tons. However, sodium sulfide production is highly polluting, limiting factory construction in developed coastal areas. Additionally, foreign countries impose strict controls on its production, contributing to long-term shortages and rising prices.
The attractive market has drawn many companies to expand production and launch new projects. Yet, most lack awareness of the risks involved. As a resource-dependent industry, sulfuric alkali relies heavily on Glauber’s salt and coal. According to the China Inorganic Salt Association, the cost of raw materials per ton of sodium sulfide increased by 30–80 yuan compared to the same period last year, while coal costs rose by 150 yuan. When combined with electricity, packaging, and labor expenses, the average production cost per ton climbed by 150–320 yuan.
With coal prices surging further since 2008, many sulfuric alkali companies now stand at the edge of losses. Experts suggest that firms must restructure their product lines, focusing on high-value products such as special sulfide bases, granular sodium sulfide, and premium-grade lutetium. These products can offer double the profit margin, helping companies find new growth opportunities.
Moreover, the high energy consumption and pollution associated with sodium sulfide production make it a key target for energy-saving and emission-reduction initiatives. The industry not only consumes large amounts of energy but also generates significant environmental waste, including solid residues, alkaline wastewater, and harmful emissions. For every ton of sulfurized alkali produced, coal usage far exceeds national standards, posing serious environmental risks.
Industry experts emphasize that adjusting product structures and developing high-value-added products are essential strategies for sulfuric alkali companies. They should align with national energy-saving and emission-reduction goals, invest in technological upgrades, and promote green innovations in processes and equipment. Only through sustainable development can enterprises survive and thrive in the long term. Those failing to meet environmental and efficiency standards will eventually be phased out of the market.
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