1. General Situation of External Activated Carbon Industry

The external activated carbon was first developed as early as 1940s and took a shape in 1960-1970 controlled by a few of large local companies in different countries. Since the later 1980s, these companies have run activated carbon production but also approached to equipment of activated carbon producing and application. For example, machines used for activated carbon application in environment-protection, chemistry and food manufacture. They are even capable to carry out the whole project of environment protection and water proposal. The running range is enlarging year after year. Due to the world flourishing industrial development, activated carbon is used more and more widely as well as the consumption is over-increasing. Activated carbon has been used all industrial departments especially in food, medicine, environment protection, agriculture, national defense and so on. The output and market price of activated carbon is keeping rising at a rate between 5% and 10%. Since later 1980s, many foreign enterprises like American Calgon, Atomchem, American and Barneby-sutclisse companies, Luchi Company in German and Janpan's Kitamical Co., Ltd., Nato Carbon Co., Ltd. And Kowa Co., Ltd., have made science efforts to set up special institutions to improve producing equipment and technology as well as enlarge producing scale.

 

Restricted by national resources protection and high labor cost, these companies changed themselves from simple activated carbon producers into a new enterprise forming a model like a combination of science research, produce and management which available to develop new products and occupied larger market. They import a great number of primary products from China and other countries in South-east Asia , then refine the products or just change the package for transit trade at the advantages of their science technology, equipment, capital, sales network and the brand. Thus, they are able to earn extra profit that is several times than the value of cargo itself. Resources show that the CIF price for active carbon products exported from China is even cheaper than that of the raw materials bought by foreign enterprises in their domestic markets

 

In order to avoid market surplus, they founded activated carbon associations to adjust products structure between enterprises and to carry out national output plans and maintain the total outputs within 90% of the market demand. Meanwhile, they use all kinds of methods to encourage countries (like China ) with abundant resources and low cost but with small consumption and narrow exportation to produce massive activated carbon, and then reduce their import price. As a result, foreign activated carbon suppliers maintain stead profit. Presently, the United States is the country with greatest amount of activated carbon production which reaches a number of 130 thousand tons per year, China occupies the second place with the total annual outputs approximately 100 thousand tons, Russia and Japan rank the 3rd and the fourth with a mount of 90 thousand and 75 thousand tons.

 

2. General Situation of Internal Activated carbon Industry

China 's activated carbon industry originated in 1950s and developed between 1960-1970. After a hard progression of continuous reform and innovation and unsmooth development, it is now an independent and complete industry system with a total annual output of 100 thousand tons. China ranks the second largest active carbon supplying country following the United States . According to the raw material, activated carbon in China can be divided into the charcoal powdered activated carbon, the coal activated carbon and the nutshell activated carbon including several decades of series. The charcoal powdered activated carbon mainly distributes in provinces rich of forest resources like Fujian and Jiangxi with an annual production of 40-50 thousand tons. Fujian ranks the first with amount of 25 thousand tons. The coal activated carbon is mainly produced in Ningxia Autonomous Region, Xinjiang Ugro Autonomous Region and Shanxi province with an annual production of 50 thousand tons. Mainly produced in a few of manufactures in Beijing, Hainan, Jiangsu and Shandong Provinces, the nutshell activated carbon is difficult to exceed its present volume about 10 thousand tons because of the limited material. In a word, the domestic active carbon industry is presently divided into two parts: the South Activates Carbon System and the North Activated Carbon System. The South are dominated by Fujian and Jiangxi province, mainly produce charcoal active carbon while the North in Ningxia Autonomous Region and Shanxi province, mainly produce coal active carbon.

 

Although China ranks the second largest amount of active carbon production and the first exported volume in the world, our comprehensive industrial level is still backward shown from several aspects: (1) We are lacking in leading enterprise and famous brand. Most of the factories are very small and isolate, which leads to a blind competition. They need advanced management and effective scheme. (2) The equipment is out of date, not so efficient and wastes a lot. (3) Communications between producing enterprises and science research institutions, sellers and users is poor, so that we are in shortage of new products and advanced technology. (4) There is no standard price judged by any association. Whether domestic trade or international trade, whether a factory or a foreign trade company, the only competition way used is to reduce the price, which cause the profits drop to an abnormal level. If not stopped, the whole industry will be in a vicious circle doing great harms. These are reasons for the present situation of China 's activated carbon industry. Hence, we may draw a conclusion that if we get rid of those disadvantages, China 's activated carbon industry must be prosperous.

 

However, objectively the long-term competition has developed vigorous China 's activated carbon industry with rich management experience and quick response to meet an emergency. Meanwhile, there are numerous opportunities and potential markets. That is: (1). With the industrial development, awareness of environment protection has been enhanced. On the other side, due to the restriction of limited resources, cost of produce and the industry pollution etc., it is difficult for main activated carbon supply countries to raise their production volume at high level. In foreign market, contradiction between supply and demand is stressing, which provide much more opportunities for China 's activated carbon export. Presently, the annual export volume is up to 50 thousand tons and expected to a large number. (2). China 's industry has made great progress owing to the policies of opening and reform, especially the declaration of its environment protection policy. The increase of activated carbon's using fields and demand volume leads to a big domestic market, which strongly supports China 's activated carbon industry. Putting into more science effort to produce products meeting the needs of customers, we shall be able to occupy the domestic market. Additionally, the needs amount of activated carbon will be much more than that of present level that is 40-50 thousand tons. (3). On the basic of media reports, calculation data and enterprise reaction, the government has paid much attentions to the management of activated carbon industry which is of urgency. If we actively communicate and cooperate with the government and establish activated carbon association to formulate guide professional price and enhance producers awareness of self-protection, China 's activated carbon industry in trade will be greatly promoted as well as achieve better economic results. The association must be functioned under the appropriate policies to reveal the actual value. (4). China is vast in land and abundant in natural resources. The raw material of activated carbon is rich but cheap, and the labor cost is lower. All this will be a outstanding advantage for us to get the biggest world market share.

 

We are fully aware that we must have a rational perception of our own weaknesses, fully exploit to our favorable conditions and avoid unfavorable ones, seize all opportunities available, expand our vision for the future, tap our potentials, forge alliances, work closely with related government departments in planning and guidance, embark on a pathway of "invigorating the enterprise through science and technology", adopt measures such as intensifying the development of new products and the research of product applications, cash in on existing resource advantages, scales advantages, cost advantages and market advantages, and exploit adequate funding and R&D advantages, so that we can progressively form six major advantage strengths and build an international brand, thereby enabling China's activated carbon industry to compete with the foreign activated carbon industry in the international marketplace.