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From mid-May to the present, more and more information on production of phosphate compound fertilizers has been stopped and cut: Tangshan Lihe parking at the end of May, Hubei Dagukou parking at the beginning of June, COSCO Intel parking at mid-to-late May, and Jiangsu Shuangchang parking at mid-May China and Afghanistan have adjusted their annual production to 50% of the maximum annual production; Guizhou diammonium enterprises are operating at part of their production capacity; Fufu 50% of the operating rate of the inspection device, Kaihua Group also reduced the production; the entire Yuntianhua International is currently open only Half of the production capacity, Sanhuan Sinochem Cargill opened half of its production capacity, Yunfeng and Red Phosphorus each opened half, Furui stopped a set of systems and opened another half... When the reporter surveyed the current operating status of phosphate and compound fertilizer companies, Guizhou opened phosphorus. The relevant personnel of the marketing company said: "Under the nest, do you have eggs?"
Wu Xiyan, president of the China Phosphate Fertilizer Industry Association, believes that the macro-regulatory policies implemented by the country will have a great impact on the phosphate and compound fertilizer industry. From April 20 to September 30, it will increase by 100% on the basis of the original temporary tariff. The special tariffs put the entire industry in a difficult position of dilemma. He said that the difficult days of phosphorus compound fertilizer have just begun and that it will be even harder for companies in the next few months.
It is understood that because of the high price of products, the use of fertilizers in the off-season, waiting for the reduction of policies and other factors, downstream circulation companies generally adopt a wait-and-see attitude, and they do not receive enthusiasm. This caused a large increase in the production company's inventory. With the current price of 4,600 yuan per ton of ammonium phosphate, 20,000 tons of inventory will hold down nearly 100 million yuan of capital. Suffering from a large amount of funds, fear of capital chain fracture is an important reason for enterprises to reduce production. "Now companies are all tense, but only who can hold it longer." A company official said.
There is a general voice in the industry. First, the reason for the current high price of phosphate fertilizer is not the lack of goods in the market but the cost. Second, restrictions on exports may lead to abnormal deaths of phosphate and compound fertilizer companies. The reporter learned that taking diammonium as an example, although the current price has risen by about 2,000 yuan per ton over the same period of last year, it is still produced by the company with about US$600 per ton of sulphur produced. If the sulphur quoted is now US$860, the price of ammonium phosphate is Still going up. Even if the company is concerned that the production cost is seriously deviated from the market price expectation, it may cause the company to stop production and reluctant to sell its inventory, which will lead to a shortage of ammonium phosphate in the next stage, and the price will rise sharply. At the same time, due to the high industrial concentration of phosphorus and compound fertilizer companies in recent years (the output of the top 10 DAP companies has accounted for 80.5% of the production of DAP, and the output of the top 10 MAP companies has accounted for 60.5% of MAP production), under the pressure of funds. The elimination may not be able to achieve the goal of survival of the fittest.
In this regard, the open-phosphorus Group Marketing Corporation, Minister of Marketing Zhuo Guozhu told reporters that as a phosphate compound fertilizer company, the first hope that the state will step up its efforts to start light storage policy to solve the current urgent needs of enterprises; second hope that the state introduced and export tariff adjustment supporting Policy, to make products have a way out; third hope that the country's long-term policy allows farmers to buy fertilizer, have the incentive to buy fertilizer.
Phosphate Compound Fertilizer Enterprises Cut Production to Prevent Capital Chain Breakage
After the end of spring season, the domestic phosphate and compound fertilizer companies entered a downturn in the face of unfavorable policies and markets. In order to avoid the breakage of the capital chain, some companies have stopped production and stopped production. According to industry estimates, this recession is only the beginning of June.