Kunpeng Project
As a basic industry for national economic and social development, the civil explosive industry plays an important role in mining exploitation, oilfield development, engineering construction and other fields. However, the industry often exhibits cyclical fluctuations due to the impact of downstream end-user demand. Especially in the first quarter of each year, affected by factors such as the Spring Festival holiday, it is usually the traditional off-season for the civil explosives industry. However, what is surprising is that since the beginning of 2024, some companies have begun to reveal the shortage of civil explosive products, which has triggered in-depth thinking about the changes in the contradiction between supply and demand.
Over the past few years, the civil explosives industry has been experiencing fluctuations in supply and demand. Due to the unstable demand of downstream industries, the market for civil explosive products often has a surplus or shortage. The off-season in the first quarter of each year highlights this problem, and it is not uncommon for factories to stop production and project shutdowns. However, in 2024, the situation has changed significantly.
Entering 2024, some companies are beginning to experience a situation where the supply of civil explosive products exceeds demand. This is a clear anomaly compared to previous years. From mining to engineering construction, from resource exploration to deep processing, there is an urgent demand for civil explosive products in various fields. What is the reason behind this change?
First of all, the change of the demand side is one of the main reasons for the change of the contradiction between supply and demand. In 2024, as the economy continues to develop, the demand for blasting technology in various industries will continue to increase. Especially in the field of infrastructure, a series of large-scale engineering projects proposed by ** have led to a surge in demand for civil explosive products. At the same time, the development of emerging fields has also driven the demand for civil explosive products, such as the development of new energy.
However, the expansion on the supply side is not very pronounced compared to the changes on the demand side. Although the civil explosive industry is a basic industry, it is relatively difficult for new enterprises to enter due to factors such as high technical thresholds and strict environmental protection requirements. Therefore, the expansion of the supply side is relatively lagging behind, which has led to the intensification of the contradiction between supply and demand.
In view of the shortage of the supply side, technological innovation and capacity improvement are effective ways to solve the contradiction between supply and demand. By increasing R&D investment in blasting technology and improving production efficiency and product quality, the competitiveness of the supply side can be effectively improved, thereby alleviating the contradiction between supply and demand. At the same time, it can also attract more enterprises to join the civil explosive industry and increase market supply by formulating more preferential industrial policies.
However, it should be noted that in the process of the development of the civil explosive industry, environmental protection and safety issues cannot be ignored. As a high-risk industry, the production and use of civil explosive products are often accompanied by high safety risks. Therefore, while expanding production capacity and increasing supply, it is necessary to strengthen the management of environmental protection and safety to ensure the sustainable development of the industry.
To sum up, the change in the contradiction between supply and demand in the civil explosive industry in 2024 is the result of a combination of factors. The increase in demand is the main driving force, while the shortage of supply side has exacerbated the intensification of the contradiction between supply and demand. In the future development, the civil explosive industry needs to continuously increase technological innovation and production capacity improvement, and at the same time pay attention to environmental protection and safety, so as to achieve a balance between supply and demand and promote the healthy development of the industry.