At the end of last year, the National Development and Reform Commission and the Ministry of Industry and Information Technology formulated a plan for the reform of the salt industry management system. The main contents are: to eliminate the salt franchise system and completely liberalize the industrial salt management. As soon as this news came out, industrial salt production companies, operating companies, and downstream users responded strongly.
Alkali salt use
Salt is the mother of the chemical industry. Hydrochloric acid, soda ash and caustic soda are all produced from salt as the main raw material. In industrialized countries, chemical salts generally account for more than 90% of total salt consumption. In addition to the two bases, dyes, fine chemicals, tanning, oil exploration and other industries also need certain salts as raw materials, also known as small industrial salt.
The salt industry's monopolization system has resulted in the long-term development of the downstream salt industry, and it has been unable to truly move toward the market. Therefore, since the reform and opening up, the downstream salt companies have been fighting for reforms.
The salt industry reform that took place in the mid-1990s, marked by the combination of salt and alkali, is still fresh in people's memory. Salt is the main raw material for the two alkalis. The production of 1 ton of soda ash consumes 1.5 tons of salt, and the cost of salt accounts for about 30% of the total soda ash production cost. Due to the principle of raw materials, Soda plants are mostly built next to salt fields. However, under the planned economic system, the two domestic alkali enterprises are returned to the chemical industry, and the salt fields are controlled by the light industry. As the saying goes, every row is like a mountain. Some saline-alkali factories do not sell salt and buy salt directly. The original salt must go to the salt industry management department to take a “plan”, receive the transportation permit, cover the shipment, cross the province to cross the market, and finally be taken to the gate of the alkali factory at a high price.
The facts show that this kind of management system has imposed constraints on the development of both saline and alkaline industries. For example, in 1992, the production level of the soda ash industry increased, but the economic efficiency has slumped. The industry has to propose a policy of “limit production, price protection, and more exports” in order to increase profitability. One of the important reasons causing this dilemma of the soda industry is that the salt price as the main raw material has not been discussed. For the salt field, despite the increase in salt prices, it did not make the salt field more economical. Because of the increased profits from the salt price increase, only a small portion (about 30%) of the salt field was obtained, and most of the rest of the profits (about 70%) were obtained by the salt industry administrations (ie, salt companies at all levels). . At that time, the economic performance of saltworks was generally not good, and the loss surface quickly expanded. Some major salt-producing provinces even had a loss of 80%. Therefore, such a management system also triggered dissatisfaction with the salt field.
In August 1995, with the approval of Shandong Province and Weifang City, Shandong Weifang Soda Ash Factory and Shandong Yangkou Salt Field realized a cross-industry salt-alkali coalition and established Shandong Haihua Group. This was the combination of the largest domestic soda factory and the largest salt field at that time, and it was highly influential. In August 1996, the former State Economic and Trade Commission convened an on-site meeting for the promotion of salt and alkali joint experience in Weifang, Shandong Province. More than 120 delegates attended the meeting, including the director of the Economic and Trade Commission of the 16 provinces and cities of the country, the manager of the salt factory and the manager of the soda factory. Since then, Qingdao Alkali Industry Co., Ltd. and Qingdao Salt Industry Co., Ltd. have jointly established the Qingdao Gulf Group; Tianjin's “Three Great Chemicals” and “Two Major Salts” have been reorganized into the Bohai Chemical Industry Group; Dalian Chemical Industry Co., Ltd. and Dalian Fu State Bay Salt Field and other joint reorganisations are Dahua Group Co., Ltd.... Within a year, it has achieved joint efforts among more than a dozen salt companies. After breaking the industry management monopoly, the saline-alkali companies have the right to autonomy and are free to decide which products they are willing to sell to whom they are unwilling to sell to. The price can be negotiated by both parties. This is the most fundamental, most rare, and most inspiring change before and after the Saline-Alkaline coalition, although this change was originally the most basic condition of the market economy.
More than 10 years later, when we look back at this joint reform of salt and alkali, the deeper meaning of it is that it has formed the first huge impact on the implementation of the salt industry franchise system for thousands of years and has won. It ripped a strict salt monopoly system into a big hole and laid the foundation for a thorough reform of the salt management system over 10 years later.
Small-scale industrial salt market completely liberalized
Small industrial salt is not part of the franchise. However, all levels of salt companies have adopted the “prevention from salt market” as a reason to insist on the inclusion of small industrial salt in the franchise. In November 1995, the former State Development Planning Commission and the former State Economic and Trade Commission jointly issued the "Notice on Improvement of Industrial Salt Supply and Marketing System and Price Management Measures" (No. 1872) and decided to release the two alkali industrial salt. However, this document does not have a clear statement on the management of industrial salt other than two alkalis. This has led salt companies around the world to work hard to strengthen the franchise system. Salt companies around the country have used the name of salt market management to expand and expand the franchise range of salt as much as possible. At present, refined industrial salts, which are by-products of the entire marine chemical industry, have not been able to find the right place for the best use of small-scale industrial salt production licenses. The sales rights, transportation rights, pricing and quantitative rights of small industrial salt in many provinces are still controlled by the salt industry companies and are also fixed in the form of local legislation. The ex-factory price of 1 ton of industrial salt is mostly around 150 yuan, but once the salt companies at all levels are monopolized, the salt price immediately rises to 500-600 yuan, or even as high as 800 yuan. The amount of small industrial salt used in the country is about 10 million tons per year. With this alone, salt companies at all levels can obtain a monopoly income of 3-4 billion yuan per year. The salt for small industries is miserable.
Salt for small industries is the last barrier to China's salt industry monopoly system. Salts all over the small industries are all looking forward to the day when the industrial salt monopoly system is completely broken. With the arrival of that day, the Chinese market will add another powerful vitality!

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