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Although the production and sales of nitrogen fertilizers achieved a balance in 2015, the entire industry has fallen into a collective loss.
The continuous decline in prices has led to a decline in the willingness to store winter storage in the circulation link.
The continued downturn in the market has reduced the operating rate of nitrogen fertilizers.
The annual nitrogen fertilizer business situation will be more severe.
This judgment was given at a symposium of leaders of key nitrogen fertilizer companies held in Beijing last week.
Heads of key nitrogen fertilizer companies such as PetroChina, CNOOC, Jinmei, Yangmei, China Coal, Hubei Yihua, Shandong Luxi, Inner Mongolia Boyuan Holdings, Zhongnong, and Sinochem attended the meeting.
According to the statistics of China Nitrogen Fertilizer Industry Association, the output of nitrogen fertilizer in 2015 is expected to be 46.
7 million tons (reduced pure, the same below), an increase of 2.
5% over the previous year; the output of urea (physical quantity, the same below) is expected to be 68.
5 million tons, an increase over the previous year 3%.
According to customs statistics, in 2015, nitrogen fertilizer exports reached 9.
963 million tons of pure nitrogen, an increase of 12.
5% over the previous year; exports of urea were 13.
75 million tons, an increase of 1% over the previous year.
However, in 2015, the nitrogen fertilizer industry has fallen into an industry loss, with a loss of approximately 3.
13 billion yuan, and a net loss of 700 million yuan in December alone.
In 2016, affected by the plunge in international oil and food prices, nitrogen fertilizer prices fell sharply.
According to statistics from the China Nitrogen Fertilizer Industry Association, the national average ex-factory price of urea was 1,313 yuan/ton in the third week of January 2016, a decrease of 33 yuan/year from the previous month and a year-on-year decrease of 267 yuan/ton.
Participants said that the loss of the urea industry in January this year is expected to continue to expand.
The continuous decline in nitrogen fertilizer prices has obviously led to a decline in the willingness to store winter storage in the circulation link.
According to statistics from the All-China Federation of Supply and Marketing Cooperatives, the inventory of nitrogen fertilizers in the supply and marketing cooperative system fell by 5.
14 million tons, a decrease of 35%, and the inventory of compound fertilizers fell by 2.
55 million tons, a 28% decrease.
The decline in inventories of companies outside the system may be even greater.
Affected by the continuous decline in prices, the number of nitrogen fertilizer companies that stopped production and reduced production has gradually increased.
According to the statistics of the China Nitrogen Fertilizer Industry Association on January 29, the national daily output of urea was 186,000 tons, and the operating rate was only 65.
9%.
The operating rate of ammonium bicarbonate enterprises is lower.
Participants believed that due to the low amount of fertilizer preparation in the current market and the tight logistics during the Spring Festival transport period, and the demand for fertilizer and fertilizer preparation for spring plowing began in February, nitrogen fertilizer sales will face the dual test of logistics and supply, and more concentrated spring plowing fertilizer purchases will lead to The difficulty of supply has increased.
In view of the current market situation, the meeting recommended that the entire industry take active measures to stabilize the market, boost market confidence as soon as possible, resolutely put an end to low-price dumping and malicious short selling, and ensure a stable supply of nitrogen fertilizer during spring ploughing.
The specific suggestions are as follows: the control device should be operated under economic load, and should not be overloaded as much as possible, and the maintenance of the device should be done to prepare for spring fertilizer production; stabilize the sales price of nitrogen fertilizer to prevent price fluctuations from affecting market confidence, and prevent low-price dumping and dumping.
Malicious short selling; strengthen communication and cooperation with circulation companies and logistics companies to do a good job in the delivery of winter storage fertilizers; suspend shipments to ports to fully protect the domestic market; actively carry out publicity and promotion activities and activities of sending fertilizer to the countryside.
The continuous decline in prices has led to a decline in the willingness to store winter storage in the circulation link.
The continued downturn in the market has reduced the operating rate of nitrogen fertilizers.
The annual nitrogen fertilizer business situation will be more severe.
This judgment was given at a symposium of leaders of key nitrogen fertilizer companies held in Beijing last week.
Heads of key nitrogen fertilizer companies such as PetroChina, CNOOC, Jinmei, Yangmei, China Coal, Hubei Yihua, Shandong Luxi, Inner Mongolia Boyuan Holdings, Zhongnong, and Sinochem attended the meeting.
According to the statistics of China Nitrogen Fertilizer Industry Association, the output of nitrogen fertilizer in 2015 is expected to be 46.
7 million tons (reduced pure, the same below), an increase of 2.
5% over the previous year; the output of urea (physical quantity, the same below) is expected to be 68.
5 million tons, an increase over the previous year 3%.
According to customs statistics, in 2015, nitrogen fertilizer exports reached 9.
963 million tons of pure nitrogen, an increase of 12.
5% over the previous year; exports of urea were 13.
75 million tons, an increase of 1% over the previous year.
However, in 2015, the nitrogen fertilizer industry has fallen into an industry loss, with a loss of approximately 3.
13 billion yuan, and a net loss of 700 million yuan in December alone.
In 2016, affected by the plunge in international oil and food prices, nitrogen fertilizer prices fell sharply.
According to statistics from the China Nitrogen Fertilizer Industry Association, the national average ex-factory price of urea was 1,313 yuan/ton in the third week of January 2016, a decrease of 33 yuan/year from the previous month and a year-on-year decrease of 267 yuan/ton.
Participants said that the loss of the urea industry in January this year is expected to continue to expand.
The continuous decline in nitrogen fertilizer prices has obviously led to a decline in the willingness to store winter storage in the circulation link.
According to statistics from the All-China Federation of Supply and Marketing Cooperatives, the inventory of nitrogen fertilizers in the supply and marketing cooperative system fell by 5.
14 million tons, a decrease of 35%, and the inventory of compound fertilizers fell by 2.
55 million tons, a 28% decrease.
The decline in inventories of companies outside the system may be even greater.
Affected by the continuous decline in prices, the number of nitrogen fertilizer companies that stopped production and reduced production has gradually increased.
According to the statistics of the China Nitrogen Fertilizer Industry Association on January 29, the national daily output of urea was 186,000 tons, and the operating rate was only 65.
9%.
The operating rate of ammonium bicarbonate enterprises is lower.
Participants believed that due to the low amount of fertilizer preparation in the current market and the tight logistics during the Spring Festival transport period, and the demand for fertilizer and fertilizer preparation for spring plowing began in February, nitrogen fertilizer sales will face the dual test of logistics and supply, and more concentrated spring plowing fertilizer purchases will lead to The difficulty of supply has increased.
In view of the current market situation, the meeting recommended that the entire industry take active measures to stabilize the market, boost market confidence as soon as possible, resolutely put an end to low-price dumping and malicious short selling, and ensure a stable supply of nitrogen fertilizer during spring ploughing.
The specific suggestions are as follows: the control device should be operated under economic load, and should not be overloaded as much as possible, and the maintenance of the device should be done to prepare for spring fertilizer production; stabilize the sales price of nitrogen fertilizer to prevent price fluctuations from affecting market confidence, and prevent low-price dumping and dumping.
Malicious short selling; strengthen communication and cooperation with circulation companies and logistics companies to do a good job in the delivery of winter storage fertilizers; suspend shipments to ports to fully protect the domestic market; actively carry out publicity and promotion activities and activities of sending fertilizer to the countryside.
