Relevant market will be detonated in the outbreak of nuclear power construction in China
Source: ChinaNews Network Date: 2015-06-04
Following the listing of CGNPC in Hong Kong last year, China Nuclear Power, the second nuclear power generation company, will soon enter the capital market. Analysis believes that companies competing for listing on the capital market are a microcosm of China's nuclear power construction ushering in an explosive period. With the rapid expansion of China's nuclear power scale, the market related to nuclear power construction will also be detonated.
Hundreds of billions of market opportunities in the next five years
Since severe haze weather has appeared in China, various new and clean energy sources have been favored, and nuclear power, as a more efficient form of power generation, has once again ushered in the spring of development. With the restart of China's nuclear power construction, nuclear power construction has ushered in a climax. It is reported that China is the world's largest nuclear power plant under construction. According to the "Energy Development Strategic Action Plan (2014-2020)" issued by the General Office of the State Council, by 2020 China's nuclear power generating units in operation will reach 58 million kilowatts and 30 million kilowatts under construction.
According to Zhang Huazhu, the chairman of the China Nuclear Energy Industry Association, 2015 is the end of the 12th Five-Year Plan. It is expected that 6 to 8 units will start construction and 8 nuclear power units will be put into commercial operation during the year. The year with the largest number of nuclear power units in commercial operation has become a critical year for nuclear power restart. According to the plan, in the next five years, China will need to start construction of another 40 nuclear power units, and it will need to invest at least 600 billion yuan.
It is reported that the asset-liability ratios of China Nuclear and China Guangdong Nuclear Power have approached the red line of asset supervision of central SOEs. The huge capital demand has forced major nuclear power companies to accelerate their pace in entering the capital market. Last year, CGN successfully listed in Hong Kong. On June 2 this year, China Nuclear Power also officially launched its IPO journey on the Shanghai Stock Exchange. According to media reports, China Nuclear Construction is also rushing to IPO.
Wang Zhuochuang information analyst Wang Ning believes that listing is an important way for the company to raise funds. It is expected that China's nuclear power will expand rapidly. "With the acceleration of the nuclear power industry, related industries supporting it will also see rapid development."
It is understood that nuclear power equipment investment accounts for about 50% of nuclear power station fixed asset investment, which is the most important part of nuclear power investment. Nuclear power equipment includes nuclear islands, conventional islands, and auxiliary equipment, which account for 23%, 15%, and 12% of the total investment in the power station, respectively. If calculated at the cost of 12,000 yuan per kilowatt, the total cost of a 1 million kilowatt nuclear power unit is 12 billion yuan. According to the above ratio, the nuclear island investment is 2.76 billion, the conventional island investment is 1.8 billion yuan, and the auxiliary equipment is 1.44 billion yuan.
With the restart of nuclear power investment, nuclear power casting and forging, nuclear power main equipment, nuclear-grade valves and nuclear HVAC equipment and other sub-sectors are expected to fully recover. In addition, during the operation period after the completion of nuclear power, equipment overhaul and daily maintenance require various services, such as replacement of certain auxiliary equipment, maintenance items, provision of consumable materials, and so on. In addition, nuclear power plants have long operating cycles, so they will have a lasting impact on the market.
Nuclear power steel will usher in explosive development
The nuclear power equipment industry chain can be divided into upstream raw material suppliers, midstream nuclear power equipment manufacturers and downstream nuclear power plant operators, and the upstream raw materials of nuclear power equipment are mainly steel.
According to Wang Ning, a large amount of high-end steel is used in nuclear power construction. This is undoubtedly a major positive for the steel industry, which is still in the cold winter.
According to Chinanews.com's energy channel, the current production of steel for nuclear power is difficult and close to the limit of advanced rolling mills at home and abroad. Therefore, China's nuclear power steel once relied heavily on imports. At present, China's nuclear power steel has been able to achieve 85% of domestic production. With the success of Hualong One, the National Energy Administration requires that the localization rate of key equipment such as steam generators and nuclear pipes exceed 85%, and China's nuclear power steel ushers in a market feast.
It is reported that in addition to the high-end stainless steel, high-temperature alloy and other steel used in the nuclear power plant itself, a large amount of steel bars are used in the nuclear power plant's plant, office area, and FCD casting. Among them, the FCD's casting requires extremely strict requirements on steel bars. It must have high strength, good plasticity, and stable performance, and it must be rust-free, oil-free, corrosion-resistant, earthquake-resistant, and free of any visible cracks on the surface.
"In terms of market demand, it is calculated with 7 units per year, corresponding to an annual demand of hundreds of thousands of tons of nuclear power steel, of which typical products such as high-temperature alloys are about 10,000 tons per year, and high-end stainless steel is close to 50,000 tons." Wang Ning said With the deepening of the Belt and Road Initiative, it is expected that nuclear power exports will continue to make breakthroughs, and nuclear power steel will also usher in a larger market space. "The most optimistic forecast is that the potential export space for nuclear power units in the next fifteen years is about 980, which is much larger than the domestic market space of about 100. In the future, about 80% of newly-built nuclear power units will be concentrated along the Belt and Road."
However, Wang Ning also said that because nuclear power steel currently consumes a small proportion of the entire steel industry, the main steel used is mainly high-end steel, so the impact on the entire steel industry in the cold winter may not be obvious.