In the new year, many fertilizer companies in Shanxi face multiple difficulties. Tariff adjustments have led to blocked sales of fertilizers, strained railway capacity, limited local winter storage, raw coal prices hit a record high, and a new round of power curtailment... Shanxi fertilizer companies have stated that production and operation are very complicated and will give spring plows Bring more uncertainties.
Shanxi Orchid Science and Technology Fertilizer Co., Ltd. has an annual output of 1.25 million tons of urea. Yin Qinhu, deputy general manager of sales of the company, told CCIN: “Because of the previous deadline, we had no production from mid-September last year to mid-November. Last December The sudden adjustment of tariffs blocked the road to export. Although we were producing at full capacity, by the end of last year, the inventory had reached 100,000 tons."
Shanxi Fengxi Huarui Coal Chemical Industry Co., Ltd. is a company that mainly produces coke gas to produce urea. The annual output of urea is 300,000 tons. Due to the use of waste coke oven gas as raw material, the company's production cost should have been relatively low. However, Zhang Gongmin, the company’s head of production, told CCIN that the power cuts that began in late December reduced the company’s overall output by more than 30%. "Not only the fertilizer plant has limited electricity, but the coking plant also cuts electricity, and the coking plant will reduce the supply or even cut off the gas. During normal production, the three coking companies that supplied the gas to us supply about 16,000 cubic meters per hour, but recently Only an average of more than 8,000 cubic meters, and a minimum of only 3000 cubic meters, and frequent additions and reductions have caused greater inconvenience and safety hazards to production, said Zhang Gongmin.
“Now we are stuck in and out, and we are extremely anxious every day.†Wang Xudong, the company’s sales director, said that coal prices hit a record high and they could not buy them. Now they are affected by coal outbound transportation, Chengdu Railway Bureau, Guangzhou Railway Bureau, and Nanchang Railway. Fertilizer outages cannot be sent out at all. "We now have 12,000 tons of urea stocks, which is a 12-day output, and the backlog of funds is more than 21.6 million yuan, and stocks are likely to rise."
Duan Haijing, deputy manager of the sales department of Shanxi Tianze Coal Chemical Group Co., Ltd., said in an interview that since the fourth quarter of last year, anthracite prices have risen by about 400 yuan per ton, and some companies have exceeded the 1,600 yuan mark in factory prices. The cost price per ton of urea increased by more than 250 yuan, plus it could not be used at full capacity, and the amortization was greater. “We are almost the lowest-consuming company in Shanxi Province, and the total cost can be more than 1,900 yuan per ton. This high cost is reflected in the price, the customer simply can not accept.†Duan Haijing said.
He said that due to the customer's poor grasp of the future market price, all the goods currently received are sold by the Federal Reserve, and no cash payment is made. In addition, the state has no capital investment in the winter storage, most of the reserves of funds to advance the enterprise, a winter will need 200 million to 300 million yuan, financial pressure is very large.
A person in charge of the urea plant of the fertilizer plant of Shanxi Coking Co., Ltd. said in a telephone call that since the power cut last September, they stopped production. Originally, we had to drive after New Year's Day this year, but we caught up with the new round of power cuts, and the hope of restoring production was shattered again. "Maybe we will have a Spring Festival that we don't produce."
Under the combined effects of the above factors, Shanxi fertilizer companies will reduce output by more than 200,000 tons in January, accounting for about one third of the monthly production of urea in Shanxi. Shanxi is an exporter of nitrogenous fertilizers in China, and urea production accounts for one-tenth of the country's output. However, its current dilemma will bring some uncertainties to the use of spring-grown manure.
Some fertilizer companies also said in an interview that limited power production will certainly reduce the effective supply, high coal prices, high inventory is a test of the company's comprehensive competitiveness. Who can "stand still", who will be better tomorrow.
Shanxi Orchid Science and Technology Fertilizer Co., Ltd. has an annual output of 1.25 million tons of urea. Yin Qinhu, deputy general manager of sales of the company, told CCIN: “Because of the previous deadline, we had no production from mid-September last year to mid-November. Last December The sudden adjustment of tariffs blocked the road to export. Although we were producing at full capacity, by the end of last year, the inventory had reached 100,000 tons."
Shanxi Fengxi Huarui Coal Chemical Industry Co., Ltd. is a company that mainly produces coke gas to produce urea. The annual output of urea is 300,000 tons. Due to the use of waste coke oven gas as raw material, the company's production cost should have been relatively low. However, Zhang Gongmin, the company’s head of production, told CCIN that the power cuts that began in late December reduced the company’s overall output by more than 30%. "Not only the fertilizer plant has limited electricity, but the coking plant also cuts electricity, and the coking plant will reduce the supply or even cut off the gas. During normal production, the three coking companies that supplied the gas to us supply about 16,000 cubic meters per hour, but recently Only an average of more than 8,000 cubic meters, and a minimum of only 3000 cubic meters, and frequent additions and reductions have caused greater inconvenience and safety hazards to production, said Zhang Gongmin.
“Now we are stuck in and out, and we are extremely anxious every day.†Wang Xudong, the company’s sales director, said that coal prices hit a record high and they could not buy them. Now they are affected by coal outbound transportation, Chengdu Railway Bureau, Guangzhou Railway Bureau, and Nanchang Railway. Fertilizer outages cannot be sent out at all. "We now have 12,000 tons of urea stocks, which is a 12-day output, and the backlog of funds is more than 21.6 million yuan, and stocks are likely to rise."
Duan Haijing, deputy manager of the sales department of Shanxi Tianze Coal Chemical Group Co., Ltd., said in an interview that since the fourth quarter of last year, anthracite prices have risen by about 400 yuan per ton, and some companies have exceeded the 1,600 yuan mark in factory prices. The cost price per ton of urea increased by more than 250 yuan, plus it could not be used at full capacity, and the amortization was greater. “We are almost the lowest-consuming company in Shanxi Province, and the total cost can be more than 1,900 yuan per ton. This high cost is reflected in the price, the customer simply can not accept.†Duan Haijing said.
He said that due to the customer's poor grasp of the future market price, all the goods currently received are sold by the Federal Reserve, and no cash payment is made. In addition, the state has no capital investment in the winter storage, most of the reserves of funds to advance the enterprise, a winter will need 200 million to 300 million yuan, financial pressure is very large.
A person in charge of the urea plant of the fertilizer plant of Shanxi Coking Co., Ltd. said in a telephone call that since the power cut last September, they stopped production. Originally, we had to drive after New Year's Day this year, but we caught up with the new round of power cuts, and the hope of restoring production was shattered again. "Maybe we will have a Spring Festival that we don't produce."
Under the combined effects of the above factors, Shanxi fertilizer companies will reduce output by more than 200,000 tons in January, accounting for about one third of the monthly production of urea in Shanxi. Shanxi is an exporter of nitrogenous fertilizers in China, and urea production accounts for one-tenth of the country's output. However, its current dilemma will bring some uncertainties to the use of spring-grown manure.
Some fertilizer companies also said in an interview that limited power production will certainly reduce the effective supply, high coal prices, high inventory is a test of the company's comprehensive competitiveness. Who can "stand still", who will be better tomorrow.
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