Nitrogen fertilizer industry has to bear three pressures

China's nitrogen fertilizer industry is facing tremendous pressure from rising raw materials, tariffs, and overcapacity, and it will become more prominent in the second half of the year. This reporter learned from the "2008 Nitrogen Fertilizer Industry Working Conference and the Fourth Council of China Nitrogen Fertilizer Industry Association" held in Xi'an on May 8.

Not long ago, the Customs Tariff Commission of the State Council issued an announcement that from April 20 to September 30, based on export prices of China's exports of fertilizer products and some raw materials, a special export tariff with a tax rate of 100% was added. However, China’s nitrogen fertilizer production capacity has been surplus, and a considerable part of its products have been exported. Judging from the current situation, before July, the domestic nitrogen fertilizer demand will be strong, and the problem of overcapacity will not appear, and after July, the oversupply season will be reflected.

In view of the current rise in raw material prices, insufficient supply and insufficient transportation capacity, business difficulties continue to increase a series of problems facing the nitrogen fertilizer industry. Liu Shulan, deputy director of the China Nitrogen Fertilizer Industry Association, expressed the hope that the relevant authorities can provide assistance in raw material supply and transportation. To ease the current pressure on the nitrogen fertilizer industry.

At present, the supply of coal is tight and prices have skyrocketed. Many coal-to-nitrogen fertilizer companies are in the state of raw materials. It is understood that the nitrogen fertilizer industry uses about 90 million tons of coal throughout the year. The coal supply contract signed in 2008 was 36.396 million tons, and only 26.675 million tons was actually included in the national transportation framework plan. The person in charge of Henan Pingdingshan Flight Chemical Industry (Group) Co., Ltd. told the reporter that now wagons have become almost a top priority for the company, and the shortage of raw materials has a great impact on the production of the company. In addition to facing rising natural gas prices, even in the northwest region where natural gas resources are relatively abundant, many nitrogen fertilizer companies face the awkward situation of insufficient supply of natural gas in the winter and may not limit their production. .

In the face of severe situation, most nitrogen fertilizer companies have already begun to actively seek solutions. The new installation of Sichuan Jinxiang Chemical Co., Ltd. is located in Xinjiang where there is sufficient natural gas raw material, and the leader of the Shandong Hualu Hengsheng Group, which is the leader in independent R&D for large-scale nitrogen fertilizer projects in China, stated that in the future, technological innovation will be the core. Overcoming the unfavorable factors such as rising raw materials, Yunnan Yunwei Group Co., Ltd. and Shaanxi Luohe Coal Chemical Group Co., Ltd. are all planning to do a deeper and deeper industry in order to improve their anti-risk capabilities.

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