As we approached the Spring plowing in the new year, the fertilizer market became an aspect of the industry. The overall level of fertilizer prices this year will be better than last year, but corporate profits are unlikely to increase at the same time. Companies will face the embarrassment of making profits without making profits. This is an overall view of the industry on this year's fertilizer market.
“In 2008, the export tariff policy for fertilizers has been announced. Although it is more severe than before, it is better than expected. It has given enterprises a 'minding pill.'†Yue Fangmin of the Chemical Fertilizer Sales Department of Henan Xinlianxin Chemical Co., Ltd. said in an interview with reporters. According to the announcement of the General Administration of Customs, from January to March this year, the export tariff of urea is 30%, and according to the current domestic and foreign fertilizer prices, fertilizer exports are still profitable. Xinlianxin Company is still receiving export orders recently. The price of urea that is exported to exporters remains above 1750 yuan/ton, and from April to September, although the export tariff of fertilizers was raised to 35%, it has a greater effect on the export, but at the same time, it is at the expense of domestic fertilizer. With the further increase in the prices of coal, electricity, oil, transportation, and gas, as well as the increase in water resources, environmental protection, safety, and labor costs, the production costs of enterprises will increase, and the prices of chemical fertilizers will also be difficult to recover. Therefore, this year's fertilizer prices It will be better than last year."
Zhao Wenli, Sales Manager of Shaanxi Huashan Chemical Group Sales Co., Ltd., Manager of Fertilizer Sales Department of Shandong Hualu Chemicals Co., Ltd., Guo Quanpu, Manager of Henan Zhongyuan Dahua Group Sales Company, and Hou Yi, Deputy Director of Marketing Management Department of Shanxi Fengxi Fertilizer Industry (Group) Co., Ltd. Also expressed the same point of view.
“But the increase in fertilizer prices does not represent an increase in corporate profits. Higher prices support higher prices, and it is very likely that companies will not make any profit,†cautioned Xue Xuexian, minister of marketing and transportation sales at Shaanxi Weihe Coal Chemical Group.
Xue Sanxing said that the marketing research meeting of China Nitrogen Fertilizer Industry Association has just finished. At the meeting, according to statistics from China Nitrogen Fertilizer Industry Association, in 2007, China's urea annual production capacity increased by 3.27 million tons year-on-year, reaching more than 55 million tons, and annual production exceeded 53.7 million tons. The market has obviously exceeded supply, resulting in 2007 In the first three quarters of the year, the price of domestic fertilizer, especially urea, continued to fall. The ex-factory price fell below 1400 yuan/ton, and 170 companies suffered losses, with a loss of 1 billion yuan. This year, China will at least increase its production capacity by 4 million tons. It is expected that the urea production capacity in 2008 will be at least 61 million tons and the urea production will be at least 57 million tons. Even considering the annual growth in demand for agrochemical fertilizers of 5% and the increase in industrial urea demand, there will be a surplus of 8 million tons of domestic urea. Assuming this year's urea export volume still reached the level of 5 million tons last year, there is still a surplus of more than 3 million tons. Moreover, the 74th notice of the General Administration of Customs has increased the export tariffs on fertilizers, and for the first time imposes seasonal export tariffs on monoammonium phosphate, and its negative impact on fertilizer exports cannot be discounted. If the price of international fertilizers in the later period is slightly adjusted, the export of chemical fertilizers will be severely hampered under the pressure of high tariffs, which will increase the domestic supply of chemical fertilizers and curb the price increase. In addition, the country may still continue to impose a ceiling price on chemical fertilizers this year. Although the current China Nitrogen Fertilizer Industry Association has represented the national 585 nitrogen fertilizer companies in the letter to the National Development and Reform Commission, it is recommended that the urea ex-factory price be raised from 1,500 yuan/ton to 1600 yuan/ton, but whether it is adopted is still unknown. Even if this proposal is adopted, the urea ex-factory price will be allowed to increase by RMB 100/ton, which will only offset the increase in the annual production cost of chemical fertilizers, and will not increase corporate profits. According to the statistics of the China Nitrogen Fertilizer Industry Association, the national urea cost of fertilizer companies has increased to 1,500 to 1,600 yuan/ton in 2007. This year, with the further increase in the cost of coal, electricity, oil, transportation, gas and labor, the production cost of chemical fertilizers will still increase rigidly. It is expected that the cost of urea will increase by 100 to 120 yuan per ton, reaching 1600 to 1,720 yuan per ton. Therefore, it can be asserted that, with the support of high costs, the annual price level of domestic fertilizer, especially urea, will be better than last year, but the profits of fertilizer companies will be difficult to increase at the same time and may even decrease.
The relevant person in charge of the China Nitrogen Fertilizer Industry Association also warned the fertilizer companies not to be overly optimistic about this year's fertilizer market. The person in charge said that fertilizer companies must have high-cost, low-profit thinking. In particular, gas-headed fertilizer companies will face increasing difficulties in increasing natural gas prices and insufficient gas supply in the future. They should adjust product structure as soon as possible, change the route of raw materials, and fundamentally solve bottlenecks in the development of enterprises.
“In 2008, the export tariff policy for fertilizers has been announced. Although it is more severe than before, it is better than expected. It has given enterprises a 'minding pill.'†Yue Fangmin of the Chemical Fertilizer Sales Department of Henan Xinlianxin Chemical Co., Ltd. said in an interview with reporters. According to the announcement of the General Administration of Customs, from January to March this year, the export tariff of urea is 30%, and according to the current domestic and foreign fertilizer prices, fertilizer exports are still profitable. Xinlianxin Company is still receiving export orders recently. The price of urea that is exported to exporters remains above 1750 yuan/ton, and from April to September, although the export tariff of fertilizers was raised to 35%, it has a greater effect on the export, but at the same time, it is at the expense of domestic fertilizer. With the further increase in the prices of coal, electricity, oil, transportation, and gas, as well as the increase in water resources, environmental protection, safety, and labor costs, the production costs of enterprises will increase, and the prices of chemical fertilizers will also be difficult to recover. Therefore, this year's fertilizer prices It will be better than last year."
Zhao Wenli, Sales Manager of Shaanxi Huashan Chemical Group Sales Co., Ltd., Manager of Fertilizer Sales Department of Shandong Hualu Chemicals Co., Ltd., Guo Quanpu, Manager of Henan Zhongyuan Dahua Group Sales Company, and Hou Yi, Deputy Director of Marketing Management Department of Shanxi Fengxi Fertilizer Industry (Group) Co., Ltd. Also expressed the same point of view.
“But the increase in fertilizer prices does not represent an increase in corporate profits. Higher prices support higher prices, and it is very likely that companies will not make any profit,†cautioned Xue Xuexian, minister of marketing and transportation sales at Shaanxi Weihe Coal Chemical Group.
Xue Sanxing said that the marketing research meeting of China Nitrogen Fertilizer Industry Association has just finished. At the meeting, according to statistics from China Nitrogen Fertilizer Industry Association, in 2007, China's urea annual production capacity increased by 3.27 million tons year-on-year, reaching more than 55 million tons, and annual production exceeded 53.7 million tons. The market has obviously exceeded supply, resulting in 2007 In the first three quarters of the year, the price of domestic fertilizer, especially urea, continued to fall. The ex-factory price fell below 1400 yuan/ton, and 170 companies suffered losses, with a loss of 1 billion yuan. This year, China will at least increase its production capacity by 4 million tons. It is expected that the urea production capacity in 2008 will be at least 61 million tons and the urea production will be at least 57 million tons. Even considering the annual growth in demand for agrochemical fertilizers of 5% and the increase in industrial urea demand, there will be a surplus of 8 million tons of domestic urea. Assuming this year's urea export volume still reached the level of 5 million tons last year, there is still a surplus of more than 3 million tons. Moreover, the 74th notice of the General Administration of Customs has increased the export tariffs on fertilizers, and for the first time imposes seasonal export tariffs on monoammonium phosphate, and its negative impact on fertilizer exports cannot be discounted. If the price of international fertilizers in the later period is slightly adjusted, the export of chemical fertilizers will be severely hampered under the pressure of high tariffs, which will increase the domestic supply of chemical fertilizers and curb the price increase. In addition, the country may still continue to impose a ceiling price on chemical fertilizers this year. Although the current China Nitrogen Fertilizer Industry Association has represented the national 585 nitrogen fertilizer companies in the letter to the National Development and Reform Commission, it is recommended that the urea ex-factory price be raised from 1,500 yuan/ton to 1600 yuan/ton, but whether it is adopted is still unknown. Even if this proposal is adopted, the urea ex-factory price will be allowed to increase by RMB 100/ton, which will only offset the increase in the annual production cost of chemical fertilizers, and will not increase corporate profits. According to the statistics of the China Nitrogen Fertilizer Industry Association, the national urea cost of fertilizer companies has increased to 1,500 to 1,600 yuan/ton in 2007. This year, with the further increase in the cost of coal, electricity, oil, transportation, gas and labor, the production cost of chemical fertilizers will still increase rigidly. It is expected that the cost of urea will increase by 100 to 120 yuan per ton, reaching 1600 to 1,720 yuan per ton. Therefore, it can be asserted that, with the support of high costs, the annual price level of domestic fertilizer, especially urea, will be better than last year, but the profits of fertilizer companies will be difficult to increase at the same time and may even decrease.
The relevant person in charge of the China Nitrogen Fertilizer Industry Association also warned the fertilizer companies not to be overly optimistic about this year's fertilizer market. The person in charge said that fertilizer companies must have high-cost, low-profit thinking. In particular, gas-headed fertilizer companies will face increasing difficulties in increasing natural gas prices and insufficient gas supply in the future. They should adjust product structure as soon as possible, change the route of raw materials, and fundamentally solve bottlenecks in the development of enterprises.
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