Is it that conforming to laws and regulations endure the market shrinking or collusion? Potassium chlorate companies are very difficult to clean themselves

“Last year, we produced more than 7,000 tons of potassium chlorate. At the time of the first half of this year, companies almost stopped production. We can only seek new outlets.” Seeing the reporter, the largest potassium chlorate producer in China, Fujian Shengping Chemical Co., Ltd. Cai Weiqing, the manager, tells the dilemma. According to Cai Weiqing, all the regular potassium chlorate companies in the country are currently facing such a dilemma.

How is this dilemma formed? This also starts with the increasing pressure on the national security situation. According to Cai, general manager, potassium chlorate can be used not only for matches, fuses, printing and dyeing, metal smelting additives, but also for the production of fireworks. However, it is relatively easy to cause explosions during the production of fireworks and firecrackers. In the past few years, there have been a series of explosions of fireworks and firecrackers in China. On July 28, 2003, a huge explosion accident occurred in the Guoxi fireworks factory in Xinji City, Hebei Province, causing 32 deaths and 91 injuries. Fireworks explosions shocked the country. To this end, the State Council has promulgated the "Notice on Further Strengthening the Safety Management of Civil Explosive Articles" (namely Circular 52) and other documents from September 2002, restricting the use of potassium chlorate in fireworks and firecrackers.

Companies follow industrial policies. After the introduction of these documents, the potassium chlorate market will undoubtedly be greatly affected. Prior to the issuance of the document, the market demand for potassium chlorate nationwide was approximately 100,000 to 120,000 tons per year. After the documents were issued, the national market for potassium chlorate decreased by about half. Several large potassium chlorate companies, such as Fuzhou Yihua and Sichuan Changshou, have reduced their production by more than one-third.

If only the national industrial policy has been adjusted, the implementation policy of the potassium chlorate enterprise is no different. However, companies quickly discovered that as they consciously contracted the market according to national industrial policies, some illegal potassium chlorate companies did not implement Circular 52 at all and instead took the opportunity to seize the market. These enterprises reduced the potassium chlorate product standards and selling prices, did not apply for transportation permits, and even violated the provisions of the use of potassium perchlorate packaging bags and even flour bags packaging potassium chlorate, escaped the management and flow control of the transport sector, sales of potassium chlorate products have not been hit A large number of illegal fireworks manufacturers. This not only brought greater security risks to the society, but also greatly impacted the law-abiding business of potassium chlorate, and even pushed the lawfully operating company of potassium chlorate to a situation that could not be chosen but had to be chosen: By national industry As the policy goes, the market is increasingly being squeezed and contaminated with unscrupulous companies...

Cai Weiqing told reporters that in the face of such a situation, companies that clean themselves well can only work on product structure adjustment and new market development. "For example, we cooperated with relevant research institutes to develop modified potassium chlorate that can be used in firecrackers by adding desensitizing agents and separating agents to potassium chlorate to increase the ability to resist friction and impact. According to him, some of the country’s major Production companies have already performed well in this area. They vigorously developed other uses of sodium chlorate, the upstream raw material of potassium chlorate, such as tap water disinfection. At the same time, it has overcome the problem of potassium perchlorate production technology and replaced the production of potassium chlorate with fireworks in this country to allow it to enter the production of fireworks and firecrackers, thereby expanding the company's living space. However, he also admitted that if the market for potassium chlorate continues to be so chaotic for a long time, the operating environment of law-abiding companies cannot be guaranteed, and the illegal operations of illegal companies will not be hit hard. It is difficult to say how long companies can keep their cleanliness.

"It is too difficult to keep the law-abiding business!" Cai Weiqing sighed.

The reporter learned that relevant state departments have raised concerns about the chaotic situation of the potassium chlorate market. Recently, the Department of Hazardous Chemicals Management of the State Administration of Work Safety organized a research team to conduct research on several large-scale production enterprises of potassium chlorate in China. There have even been reports that the industrial policy of potassium chlorate may be adjusted again. The space for regular potassium chlorate enterprises to enter the firecracker production is expected to increase.

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