The national energy regulation and control policy has now extended into a new sector—salt resources. On December 28, a reporter learned from the National Development and Reform Commission (NDRC) that in response to the growing trend of illegal construction and excessive investment in expanding salt production capacity, the commission is intensifying its efforts to develop guidelines for the salt industry and implement macro-level control over total production capacity. Illegal projects will be reviewed and cleaned up, a move that both alkali industries have welcomed.
According to reports, this guidance was prompted by the recent surge in blind investments in certain regions and enterprises. Recently, the NDRC approved the vacuum salt production project of Jiangxi Fidelity Co., Ltd.—the first such project to be approved since the establishment of the salt industry approval system. This signals a shift in regulatory focus toward controlling expansion and ensuring sustainable development in the sector.
Industry forecasts suggest that China’s total salt consumption is expected to grow by 3–3.5 million tons annually, with market demand reaching over 65 million tons by 2010. The Two Alkali Associations also predict an average annual growth rate of about 8% during the “Eleventh Five-Year Plan†period, meaning an increase of around 3 million tons per year for the two alkali industries. However, these projections have not stopped the recent wave of illegal construction and excessive investment in salt production capacity.
It is estimated that new salt production capacity this year will reach 10 million tons. Even when accounting for smaller industrial salt producers, the country is likely to face overcapacity, which could strain resources, transportation, and environmental systems. The current overheating in salt projects is partly attributed to the rapid growth of two-alkali production capacity. The Chinese Soda Industry Association confirmed that the NDRC has sought their input on the new guidelines, and they support the initiative.
Currently, domestic two-alkali production stands at over 20 million tons. The association clarified that there is no direct link between the overcapacity in the salt industry and the production of two alkalis. They emphasized that the NDRC’s regulation of salt projects should not hinder the development of the two-alkali industries.
Last year, due to an oversupply of raw salt nationwide, many salt companies were unable to import it. In response, two major alkali companies imported nearly 1 million tons of raw salt from abroad, and they are expected to continue doing so this year. This context has contributed to the recent trend of excessive investment in salt projects.
According to the China Salt Industry Association, the total output of crude salt in 2004 reached 38 million tons, with 80% being industrial salt. This highlights the scale of the industry and underscores the need for more structured regulation to prevent further inefficiencies.
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