India’s Morbi GGL Gas Company Temporarily Increases Prices, 30% Ntawm Ceramic Factories yuav raug kaw.

Raws li Times of India, an increase in industrial gas prices by Indian gas company Gujarat Gas Ltd (“GGL Gas“) will cost the country’s largest ceramics cluster, Morbi, an additional Rs1 billion in gas costs.

GGL Gas company announced on 24 August that it would increase the price of industrial gas for companies producing sanitary ware and tiles in the Morbi and Surendranagar regions by approximately Rs 5 rau tus qauv cubic meter (Rs 4.37 including tax) to a final price of Rs 37.51 rau tus qauv cubic meter, with effect from the same day. Tus nqi roj rau kev siv nyob hauv tsev tseem tsis hloov pauv.

The increase in industrial gas prices is mainly due to the significant increase in LNG prices in the international market. Tsis ntev los no, there has been a relatively large increase in the global price of natural gas. Prices in the Chinese market also exceeded RMB 5,400 per tonne, a price increase of over 100% compared to the same period the previous year, while prices in the US market also reached their highest level in almost 10 xyoo.

Raws li cov ntaub ntawv tso tawm los ntawm Tuam Tshoj Lub Tsev thiab Sanitary Ceramics Association, as of 2020, the natural gas usage rate of building pottery enterprises has increased from less than 15% mus txog 55%. Txawm li cas los, nrog rau cov lus pom zoo carbon nruab nrab thiab cov pa roj carbon ncov, kev lag luam roj piv yuav tsis nce tom qab 2025 and the proportion will decrease after 2030. Natural gas is carbon-neutral transitional energy, electricity will become the future of the “main energy force”, and electric firing kilns will be the new direction of energy technology development in the building and sanitary ceramics industry. Nws yog to taub tias, at present in Guangdong, Fujian, Shandong, Sichuan, Liaoning thiab lwm qhov chaw tsim khoom, feem ntau cov tuam txhab tau ua tiav qhov kev hloov pauv hluav taws xob huv.

And India also completed the process of switching from coal gasification furnaces to natural gas production in 2019 on a mandatory basis. GGL Gas is now reported to supply 6.5 million cubic meters of natural gas per day to the Indian ceramics industry. The price increase will add an additional Rs 1 billion per month to the bill. The sudden increase in gas prices will have an impact on the existing orders of Indian ceramics companies and gas companies and or so.

Nilesh Jetpariya, tus thawj coj ntawm Morbi Ceramics Association, said that the increase would add 7 rau 8% to the production costs of companies and could even lead to the shutdown of nearly 30% of factories in Morbi. Hauv cheeb tsam, roj nyiaj rau ze li ntawm 35 rau 40 feem pua ​​ntawm tag nrho cov nqi tsim khoom, and the sudden price hike could prevent many manufacturers from adjusting their production plans in time, or they will be forced to clear their stocks at a loss.

Ntxiv rau, ntim khoom tsis txaus thiab cov nqi thauj khoom siab yog squeezing pobzeb factories hauv Morbi. Shipping costs have risen two to three times in the last few months. Local exporters are unable to get containers and exports of tiles have fallen by 20-40%.

Exports account rau 30 feem pua ​​ntawm Morbi cov pobzeb tsim. KG Kundariya, chairman of Morbi-based Wintel Ceramics Private Limited, said exports had fallen by 20 feem pua. Exports were supposed to bring in incremental volumes when the Indian market was slowing down due to pandemic demand. However poor logistics led the export market to take a hit as well. Los ntawm kev nce nqi kom dhau ntawm cov nqi ntau lawm, end retailing will also be affected.

Txhawm rau kom ntseeg tau tias tsis muaj cov khoom siv ntau dhau hauv kev ua lag luam thiab cov khoom lag luam uas twb muaj lawm raug muag ntawm tus nqi tsim nyog, pobzeb factories tab tom txiav txim siab kaw cov kiln hauv teb. Txog tam sim no, 115 tile factories have reportedly ceased production and a further 250 will be shut down for a month from 1 September.