The Strategist

China's carbon industry will face overcapacity

12/24/2018 - 13:18

China's carbon industry will face a serious overcapacity in the second half of 2020, as manufacturers have rushed to increase capacity in pursuit of high profits, Reuters reported, citing the China Carbon Industry Association (CCIA).

ell brown via  flickr
ell brown via flickr
Carbonaceous products are widely used in sectors such as metallurgy, chemical industry, aviation, and renewable energy due to their high corrosion resistance and good conductivity.

"High profits prompted companies that closed in dark years to resume work and even increase capacity," said CCIA Secretary General Sun Qing at an industry conference.

"Meanwhile, some of those who do not have carbon production facilities are planning to launch new production lines," he added.

Unlike China’s steel and coal industry, where capacity is strictly controlled by the central government, carbon producers do not need permission from the authorities to add new capacity as long as they comply with environmental standards.

However, despite the expansion of capacity, China will still be faced with a shortage of high-quality carbon-containing products, such as needle coke, which is used to produce lithium-ion batteries.

"Carbon producers should not only focus on short-term interests and blindly increase capacity ... but also take this rare opportunity to improve technology and modernize their products," said the secretary general of the CCIA.