Ningxia CPPCC members issued a warning that the vicious competition in dicyandiamide should arouse enough attention

Ningxia is China's major production base for calcium carbide and its deep-processed product, dicyandiamide. Due to some companies blindly investing in new construction and expansion, they have to go head-to-head and repeat construction. As a result, the current production capacity of Ningxia dicyandiamide products is surplus, supply exceeds demand, and the market is saturated. At the Fourth Meeting of the Eighth National People's Political Consultative Conference of the Ningxia Hui Autonomous Region, the three members of the Chinese People's Political Consultative Conference proposed that the macro-control and industrial restructuring of Ningxia dicyandiamide products should be promptly implemented to prevent vicious competition.

In recent years, with the gradual opening up of the international market, limestone and dicyandiamide products that have been further processed with calcium carbide have become popular chemical products in the international market. Lime nitrogen and dicyandiamide are involved in more than 30 industries such as pesticides, printing and dyeing, chemical fertilizers, pharmaceuticals, flame retardants, electronics, and environmental protection agents. They have a wide range of fields, have great potential for development, and are very profitable. Ningxia has a production capacity of 450,000 tons of lime nitrogen and dicyandiamide, accounting for approximately 80% of the country's total production capacity, and accounts for approximately 60% of the world's production capacity. Dicyandiamide exports account for more than two-thirds of the country’s exports. Therefore, Ningxia is known as the export base for the production of lime nitrogen and dicyandiamide.

According to incomplete statistics, currently there are more than 60 calcium carbide producers in Ningxia. The company that has the capability of deep processing to produce lime nitrogen and dicyandiamide has also grown from only one company in Ningxia Darong Chemical Group in 1988 to more than a dozen. It is understood that at present, some of these companies do not have enough cars to drive, some have cash flow difficulties, some suffer losses, and some are forced to cut production or even stop production. In order to survive, companies in the same industry are competing to cut prices, fight the market, dig a corner, fight a civil war, and form a vicious competition. As a result, everyone does not make money. If the above problems are not solved in time, it will inevitably cause greater waste of resources and energy, and even throw away the international market of dicyandiamide that Ningxia already owns.

To this end, at the Fourth Session of the Eighth Session of the CPPCC National Committee, Ningxia CPPCC members Sun Yichao, Zhang Wanning, and Wu Jiping proposed that the relevant Ningxia and local governments and the Ningxia Petrochemical Association quickly implement macro-control and industrial restructuring of Ningxia dicyandiamide products. To stop vicious competition and lead to a virtuous circle.

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