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The price of natural gas increased by 0.44 yuan/m³, and more than 360 ceramic factories in India suspended production?

Release time:2024-12-20click:0

A few days ago, the Morbi ceramics industry, India's largest ceramic production area, has attracted widespread attention from the Indian media. News such as rising natural gas prices, blocked exports, and suspension of ceramic factory production have spread frequently.

Comprehensive compilation by "Ceramic Information" found that starting from August 24, the price of natural gas in the Morbi ceramic production area in India will increase by about 5 rupees per cubic meter (approximately equivalent to 0.44 yuan). Nilesh Jetpariya, chairman of the Morbi Ceramics Association, said, "This price increase will increase the production costs of factories by 7% to 8% and may force nearly 30% of factories in the Morbi ceramics production area to suspend production."

Previously, the "Times of India" reported that as of the end of August, 115 ceramic factories in the Morbi ceramic production area of ​​India had suspended production, and 250 ceramic companies will suspend production for one month from September 1.

Morbi’s daily natural gas consumption is 7 million m³

The price of natural gas increased by 0.44 yuan/m³, increasing costs by 90 million yuan per month

“At this stage, the Morbi ceramic production area consumes about 7 million cubic meters of natural gas every day.” Local ceramic industry insiders said that on August 23, India’s Gujarat Natural Gas Co., Ltd. announced an increase in industrial natural gas per cubic meter of approximately 5 rupees (approximately equivalent to 0.44 yuan).

According to the agreement, the new industrial natural gas price will be implemented on August 24, so the monthly natural gas cost increase in the Morbi ceramic production area will exceed 1 billion rupees (approximately equivalent to 90 million yuan).

Gujarat Gas Corporation Limited said the price increase was necessary due to a "significant increase" in natural gas prices in the international market.

The increase in natural gas prices has affected all local ceramic factories! In March 2019, the National Green Tribunal, India’s central agency, issued an injunction prohibiting ceramic companies in the Morbi-Wankaner area from using coal gasification technology for production, and ordered the Gujarat Pollution Control Board to shut down the local area. All gas generators.

In July of the same year, the Morbi ceramic production area in India basically completed the "coal-to-gas" transition. The "Times of India" reported at the time that due to the huge demand for natural gas in the Morbi ceramic production area, Gujarat experienced aFrom February to March 2020), the supply of natural gas reached 9.05 million cubic meters per day. It is reported that 65%-70% of the natural gas consumption in Gujarat is consumed by the Morbi Ceramics Factory.

Among them, the sudden rise in natural gas prices has a great impact on the orders that have been generated, especially export orders.

Nilesh Jetpariya, chairman of the Morbi Ceramics Association, said that the price increase will increase the factory's production costs by 7%-8% and may force nearly 30% of the factories in the Morbi ceramic production area to suspend production. "Fuel accounts for 35%-40% of total production costs. A sudden increase may make it unbearable for many ceramic factories, and they may be forced to sell products at a loss."

Exports fell by 40%, and domestic sales were also hindered

Over 360 ceramic factories in the Morbi production area have suspended production

Sea freight has increased two to three times in the past few months, and the supply of containers is in short supply, which has seriously affected exports from the Morbi ceramic production area. "Currently, Morbi ceramic tile exports have dropped by 40% year-on-year." Morbi Ceramics Association Mukesh Ughreja said.

According to incomplete statistics, the current output value of Morbi ceramic tiles is 450 billion rupees (approximately equivalent to 39.411 billion yuan), of which exports account for 30%. The person in charge of a local ceramics factory said that his company's exports dropped by about 20%. Previously, India's domestic sales slowed down due to the impact of the epidemic, but exports were relatively satisfactory and did not have a big impact.

"New order bookings in the export market have been hit due to shortage of containers; costs have also gone up due to soaring freight rates." Nilesh Jetpariya, Morbi Ceramics Association, added.

Take exports to China as an example. In July 2021, China’s total imports of ceramic tiles from India in a single month were only US$71,329 (approximately RMB 460,000), compared with US$4,297,832 (approximately RMB 27.77 million) in the same period last year, a sharp drop of 98.34 %.

From January to July 2021, China imported only 205,800 square meters of ceramic tiles from India for US$3.12 million (approximately RMB 20.16 million). In the same period last year, it was 885,400 square meters and US$10.93 million (approximately RMB 70.37 million). The import volume A year-on-year decrease of 71.43%.

India dropped from the third largest ceramic tile importer in China to the fifth largest ceramic tile importer, behind Italy, Spain, Turkey and the Russian Federation. Overall, during the peak period, China imported 118 million yuan of ceramic tiles from India a year, but now it is only 460,000 yuan a month. The reasons behind this are complicated, but they also reflect the decline in Indian ceramic tile exports.

LocalRelevant people said that ceramic manufacturers in Italy, Spain and other countries will benefit from the unfavorable situation in India.

In addition to shrinking exports, domestic sales of Indian Morbi ceramic tiles have also been greatly affected. Therefore, many ceramic manufacturers are trying to pass on the increased cost pressure through price increases.


In order to ensure the healthy operation of the market and digest the existing inventory, many Morbi ceramic factories have temporarily suspended production. According to the "Times of India" report, as of the end of August, 115 local ceramic factories have suspended production, and another 250 will suspend production for one month from September 1.

There were rumors that secondary fabric and porcelain tile manufacturers in the Morbi production area of ​​India, which had stopped production since August 15, will resume production on September 15. However, on September 16, local insiders told "Ceramic Information" that this type of ceramic factory is still in a state of suspension of production.

“The raw materials for the production of Morbi porcelain tiles mainly come from Rajasthan. Due to various factors, the raw materials from this origin cannot be transported to Gujarat (GUJARAT) normally, which in turn affects the production of porcelain tiles. "The above-mentioned insider analyzed that, in addition, due to the transportation "big strike", soaring natural gas prices, soaring labor costs, etc., local secondary fabric and ceramic tile manufacturers had to suspend production.

As for whether the news is true, "Ceramic Information" has not yet been effectively confirmed.

(Article reproduced from Ceramic Information)

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