Market Outlook Supply and demand status of China s salt market in 2023 Competitive landscape and dev

Mondo Finance Updated on 2024-02-21

Major listed companies in the industry:Jiangyan Group (601065); Su Yanjing God (603299); Snow Salt Industry (600929); Yunnan Energy Investment (002053) and so on.

Analysis of the current situation of market supply and demand

-- Stable supply capacity

China is the country with the largest raw salt production capacity and output in the world. In recent years, the supply capacity and level of China's salt industry have developed steadily, and from 2016 to 2022, China's salt production capacity is 11-1.200 million tons fluctuated in the range, and the output was 0The range of 8-100 million tons fluctuates, and the supply situation is relatively stable. In 2022, China's salt production capacity will be 110.94 million tons, with an output of about 97.75 million tons and an overcapacity of nearly 20 million tons.

-- Demand continues to rise

In recent years, China's raw salt supply and demand have been generally balanced, from 2016 to 2022, the continuous development of downstream two alkalis has driven the overall increase in China's raw salt demand, and China's raw salt consumption has achieved a steady increase, China's raw salt consumption will reach 111.44 million tons in 2022, and the downstream demand for raw salt will be flat as a whole, but the downstream two alkali enterprises have increased the demand for high-quality raw salt in order to reduce production costs, resulting in the elimination of many raw salts below the first grade in the market.

-- Raw salt** has declined

From 2004 to 2023, the mainstream of China's raw salt first fell and then rose, among which, at the beginning of 2021, the overhaul of some enterprises in the downstream two alkali industries ended, the overall demand of the downstream chemical industry picked up, and the raw salt ** rebounded. In September 2021, the raw salt ** was significantly ** and continued to run at a high level, mainly affected by the tightening of the supply side and the rising production costs, and from 2022 to 2023, China's raw salt ** began to fall, and as of August 2023, the mainstream of raw salt in East China has dropped to 350 yuan tons.

Analysis of the market competition pattern

- Competitive echelon

From the perspective of the industry competition pattern, according to the division of the company's salt product production capacity, it can be divided into three competitive echelons. Among them, enterprises with a production capacity of more than 10 million tons include China Salt Group; Enterprises with a production capacity of 100-10 million tons are: Xuetian Salt Industry, Jiangyan Group, Su Yanjingshen and other enterprises; The production capacity of the rest of the enterprises is less than 1 million tons.

-- Regional competition pattern

From the perspective of the regional distribution of salt industry chain enterprises in China, salt industry chain enterprises are mainly distributed in the eastern coastal areas and inland lake concentration areas, especially in Shandong, Hunan, Hubei and other places, followed by Xinjiang, Inner Mongolia Valley and other places.

Industry development prospects**

-- During the 14th Five-Year Plan period, the growth rate of China's salt production capacity slowed down

In 2023, affected by Japan's nuclear sewage discharge, the market growth of China's salt industry, especially in the field of edible salt, will be driven in the short term, but in the long run, the salt field, which accounts for a total of ninety percent of the well salt and lake salt, will not be affected by the discharge into the sea, while the industrial salt market will develop steadily with the growth of the downstream two alkali markets.

According to the "Guiding Opinions on the Development of the Salt Industry in the 14th Five-Year Plan", at the end of the "14th Five-Year Plan", according to market demand, the raw salt production capacity of the whole industry will strive to be controlled below 125 million tons, maintain the basic balance of market supply and demand, and prevent overcapacity. The annual operating income of salt products will strive to reach more than 50 billion yuan, and the total profit will reach more than 3.5 billion yuan.

For more research and analysis of this industry, please refer to the "February ** Dynamic Incentive Plan - Market Demand and Investment Strategic Planning Analysis Report of China's Salt Industry" by the Prospective Industry Research Institute.

At the same time, the Prospective Industry Research Institute also provides solutions such as industrial big data, industrial research reports, industrial planning, park planning, industrial investment, industrial mapping, smart investment promotion system, industry status certification, IPO consulting, fundraising and investment feasibility study, and IPO working paper consulting. To quote the content of this article in any public information disclosure such as prospectus and annual report, formal authorization from Qianzhan Industry Research Institute is required.

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