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Impact of carbon peaking and carbon neutrality policy on the refractory industry

Nov. 03, 2021

On October 24, the state issued a blockbuster document on carbon peaking and carbon neutrality. The main objectives include:

In 2025, carbon dioxide emissions per unit of GDP will drop by 18% compared to 2020, and the proportion of non-fossil energy consumption will reach 20%.

In 2030, carbon dioxide emissions per unit of GDP will drop by more than 65% compared with 2005, and the proportion of non-fossil energy consumption will reach about 25%. CO2 emissions reach their peak

In 2060, the proportion of non-fossil energy consumption will reach more than 80%, and the goal of carbon neutrality will be successfully achieved.

Based on this, the state has increase limitations over the energy industry, and the production capacity of refractory materials has been greatly decreased, especially for the electro-fused products, such as fused magnesia, brown corundum, white corundum, silicon carbide, graphite, etc. Price are rising rapidly and new orders cannot be arranged. At the same time, the products which the electric furnace are used in the production process have also been greatly affected, and the prices have almost risen by over 15%, such as ceramic fiber products and electro-cast bricks.

Although the state has planned to assist in the implementation of carbon peaking in designated energy industries and fields such as refractory materials, the situation of difficult production schedule and situation that the delivery time is difficult to guarantee could not be improved in short time. It is expected that after the heating season, with the implementation of the new electricity price policy, the production cost of the entire refractory industry will increase, but the tight production capacity will be improved and product prices will stabilize.

Customers who have a procurement plan within three to four months are requested to carry out procurement actions in advance to ensure that their production is not affected. We are always here, welcome to contact us freely!


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