On December 2nd, when we learned that China adjusted the export tariff of fertilizers, the head of production of Henan Xinlianxin Fertilizer Co., Ltd. told CCIN reporters: “The impact of this adjustment on tariffs is really not small. The country may want stability. The market is worried that the amount of chemical fertilizers used in spring is not enough, but the actual situation is disorderly.
According to the notice issued by the State Council Tariff Commission on November 30th, in December, the tariffs on high-end tariffs on fertiliser products that originally applied off-season export tariffs were increased, and the export tariffs on major fertilizers such as phosphate compound fertilizers and urea surged from 7% to 110. %.
The person in charge of Xinlianxin Company said: "Originally, December was the off-season, and now we have to implement high tariffs for the peak season; at the same time, according to the previously issued tariff policy, from July 1 to September 15 and October 2010, The positioning of off-season intervals from the 16th to the 31st of December is also very unscientific and does not meet the tariff adjustment rules for the use of fat seasons. This adjustment has completely disrupted the market order and laws, and the production and operation of enterprises are at a loss."
He also said that this year's fertilizer manufacturers have no profit. In the first half of the year, fertilizer prices were low and economic efficiency was very poor. Many companies were basically in a loss state. In the second half of the year, prices have risen. We have just seen hope and are now broken.
It is understood that due to rising raw material prices and frequent power cuts in some regions, fertilizer companies are still in a predicament. In the second half of the year, the main reasons for the increase in fertilizer prices were the stimulating of raw materials, and the insufficiency of the operating rate of the enterprises to reduce the products. Most of the companies did not slow down. Henan Lianxinxin has almost been the lowest-cost enterprise in the country. However, in November, with frequent piezoelectric power cuts, the cost per ton of urea reached more than 2,000 yuan, and the cost has been inverted.
The CCIN reporter learned that the equipment of chemical fertilizer companies is large-scale, long-cycle operation, and it is impossible to stop in the winter. Some fertilizer production enterprises are barely supporting now. Henan Coal Chemical Group's Anhua company and other companies have reflected: In this case, December's adjustment of export tariffs during the busy season has made the days of fertilizer manufacturers worse. At present, many companies are "the raw materials can not be bought, urea can not be sold," and companies have even no confidence in production and management.
Dong Hushui, deputy general manager of transportation and sales of Shanxi Yangmei Fengxi Fertilizer Industry Group Co., Ltd., said: “Upgrading of export tariffs will block exports. Fengxi Group now produces about 110,000 tons of urea per month, and at low tariffs, it exports 20% in general. ~30% of exports in December will not be able to increase the inventory of 22,000 to 23,000 tons.†Yin Qiuhu, Deputy General Manager of Sales of Shanxi Lanchuang Kechuang Fertilizer Co., Ltd. told CCIN: “Since the serious impact of the previous deadline, we started from September. From mid-to mid-November, there was no production. According to the original plan, December was a low-tariff period, and the price was OK. Originally I would like to produce more and make up for the loss for the whole year. I didn't want to just start this for two weeks and I run into this. This situation has caused companies not to know what to do.We now have more than 60,000 tons of stocks, and the ports are no longer receiving goods. If we were to produce at full capacity in December, the stock would reach 200,000 tons, and we would have to cut production if we did nothing. â€
“After restricting exports, domestic companies can only fight prices. By then, the days of business will certainly be even harder. Those who can't stand can only stop.†Wu Quance, manager of ammonium phosphate sales company of Hubei Hubei Chemical Industry Co., Ltd. expressed great concern and admitted that: "We really do not want the country's tariff policy to be overkill or excessive."
Assistant Secretary General Xiong Linji of Hubei Yihua Group told CCIN reporters that the introduction of the policy was relatively urgent and the article was issued at the end of November, requiring that it be implemented on December 1st, and that there was no buffer period. At present, some of the contracts that they have signed cannot be implemented anymore. They can only be forced to switch to the domestic market. This will certainly affect the company's effectiveness. He said: "We hope that when the national policy is issued, it will not only give the company a corresponding buffer period, but also take into account the real situation of the market."
The adjustment of export tariff policies is to maintain the stability of market prices, but the entire industry will pay a huge price. In fact, if the overall loss of fertilizer companies, development stopped, and ultimately victims of "three rural" and the vast number of consumers. This is the opinion of Kuo Guozhu, Minister of Marketing of Guizhou Kaisui Group Co., Ltd. He told the CCIN reporter: “The state has some concerns about the domestic fertilizer market supply. There is currently far more than domestic demand for ammonium phosphate production. The ammonium phosphate production capacity will be around 15 million tons next year, and the actual output will be around 13 million tons, but domestic demand At the highest level, it is 7 million tons. When the domestic fertilizer production was only a few hundred thousand tons, the state encourages exports, and now fertilizer production has increased substantially, but it has also restricted exports, and people cannot understand it."
Lu Guozhu believes that restricting exports will lead to rising costs. First, the fertilizer storage period will be longer, and the capital cost and storage cost will increase. Secondly, if chemical companies reduce load, low load, or even stop, they will bring security and environmental risks, and the rise of production and other costs will finally be reflected in the product price. If the market exceeds supply, the losses caused by low prices can only be borne by the manufacturers. In addition, unstable policies will also have a big impact on the image of fertilizer companies in the international market. Due to the drastic fluctuation of policies, the resources such as channels and customers accumulated over the years will be damaged.