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Price Increases ! Even short of supply ! Tight supply of natural gas.Tiles manufactures in many places have to stop production or reduce capacity.

- Dec 05, 2017 -

Since the beginning of October this year, the price of natural gas  started to show an upward trend due to tight gas supply. After the northern part of China entered the heating season on November 15, the volume of natural gas used in the country surged and the national natural gas shortage intensified. No matter it is controlled by the Price Bureau Natural gas or market-oriented liquefied natural gas (LNG), prices are rising, has hit a record high.


At the end of November, natural gas supply companies in various regions issued a notice of suspension of supply and to stop or limit the natural gas supply to industrial users.

Since 2016, Shanxi Province, Hebei Province, Guangdong Province, Shandong Province, Sichuan Province and other regions have all promoted coal-to-gas conversion projects. In addition, Fujian Province, the earliest place to implement coal-to-gas reforming, has achieved natural gas as fuel in several areas in China.

With the action plan for prevention and control of air pollution and the progress of coal to gas clean energy projects, the demand for natural gas in various places has been rapidly increasing. Especially after the heating season, the contradiction between supply and demand in different sectors has become increasingly apparent.

Facing increasing cost and even no gas to use, many tiles factories have to cut their production capacity or even completely stop the production lines. 

Hebei: Industrial gas stopped supplying one after another

In October, natural gas prices in Hebei Province experienced an increase. After entering the heating season on November 15, the price has risen to 3.5 yuan / m³ and the LNG price has risen to nearly 4 yuan / m³. However, into the end of November, gas prices are still rising. Some companies choose to stop production early.


On November 27, Hebei Provincial Development and Reform Commission announced the supply of natural gas into the Ⅱ-level early warning state, that the province's supply and demand gap of 10% -20%, and the economic and social development have a greater impact. When demand exceeds supply capacity, reduction of industrial gas is the first step.

Since November 27, Baoding Xinao Gas Co., Ltd., Shijiazhuang Xinao Gas Co., Ltd., Qingyuan Binhai Gas Co., Ltd. and other natural gas supply companies have issued a limit air notification, in accordance with the "protection of people's livelihood, stop the industry" principle, shut down Industrial users of gas production.

Shandong: After entering the heating season, gas prices rose 24%

Zibo, Shandong began to promote  coal to gas last year, the current Zibo tiles manufactures have achieved full use of natural gas pipeline for tiles production, and this is the first time effected by  the tight air supply.

According to statistics, within half a month oafter entering the heating season, Shandong natural gas has risen nearly 0.6 yuan / m³, an increase of 24%. On November 18, the price of natural gas in Shandong rose from RMB2.45 / m³ to RMB2.6 / m³ and now has risen to 3.03 yuan / m³.

Due to tight gas source, tiles factories are unable to meet the production needs of  at full capacity, so have to reduce half of capacity.

Sichuan: gas source is still difficult to guarantee the supply

As one of the ceramic producing areas closest to the origin, Sichuan has relatively low natural gas prices and abundant gas sources. More than 90% of the tile producers in the Jiajiang and Danling producing areas have achieved coal to gas reform. However, it is still affected by the shortage of gas sources and the rising gas price in the near future.

Recently, the price of natural gas in Sichuan increased from 1.75 ~ 2.05 yuan / m³ to 1.95 ~ 2.25 yuan / m³, but it has been affected by the supply stoppage again. Sales improved and is ready for next year's inventory of Jiajiang Tao ceramic production enterprises had to cut production, some companies even plan to retain only one production line , the others shut down.


In addition, some areas in Henan also have to implement the gas supply limit due to lack of gas supply; Shanxi LNG increased  400 - 700 yuan / ton within a week , the highest close to 7,000 yuan / ton; Shaanxi  increased 400 yuan / ton within a week , and  now has  exceeded 6000 yuan / ton, compared with mid-September, has risen 1 times .

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