The volume and price of potassium chloride companies are expected to increase significantly in the first quarter

On April 12, the leading potassium chloride enterprises, Salt Lake Co.
, Ltd.
and Zangge Mining, released the first quarter performance forecast for 2022
.
Salt Lake Co.
, Ltd.
expects a net profit of 3.
45 billion yuan to 3.
55 billion yuan in the first quarter, a year-on-year increase of 334.
98%-347.
59%; Zangge Mining expects a net profit of 780 million yuan to 830 million yuan in the first quarter, a year-on-year increase of 208.
15%-227.
90%
.

The two listed companies said that according to historical data, the second quarter is the peak season for sales, and the current supply of main products is tightening, which will ensure downstream supply
.

Production and sales boomed in the first quarter

Salt Lake's potassium chloride production ranks first in Asia
.
In 2021, the company's potassium chloride output will be about 5.
02 million tons, the sales volume will be about 4.
65 million tons, and the accumulated storage will be about 370,000 tons
.
Zangge Mining owns a mining area of ​​724.
35 square kilometers in the Chaerhan Salt Lake, with an annual production capacity of 2 million tons.
It is the second largest producer of potassium chloride in China
.

It is learned from these two listed companies that under the circumstance that the market demand is strong and the price of imported potash fertilizer is running at a high level, domestic potash fertilizer production enterprises such as Salt Lake Co.
, Ltd.
and Zangge Mining have full production, guaranteed supply and stable price, and played the role of "stabilizer"
.

The first quarter performance forecast disclosed by Salt Lake shares shows that during the reporting period, the company's main business potassium chloride production and sales were stable, with an output of about 1.
14 million tons and a sales volume of about 1.
45 million tons, up 1.
9% and 80% from the previous month
.
Zangge Mining stated that in the first quarter, the sales volume of its subsidiary Zangge Potash Fertilizer potassium chloride products increased, the sales price continued to rise, and the operating income and profit increased significantly compared with the same period of the previous year
.

Zangge Mining said that due to changes in transportation costs and other factors, the company raised the price of its products slightly in March.
At present, the price of domestic potash fertilizer has stabilized, and the price difference between it and imported potash fertilizer exceeds 1,000 yuan per ton
.
It is currently the spring ploughing season, the supply is tightening, and the company's inventory is close to a historical low
.

Zangge Mining said that the peak season for potassium chloride sales is concentrated in the second quarter
.
At present, the company has a design capacity of 2 million tons, and produces about 1.
1 million tons of potash fertilizer every year, and the downstream demand is stable
.
In order to improve the stocking of potash fertilizer during the spring ploughing season, the company responded to the call of the state, actively stabilized production and guaranteed prices, and increased the output of spring ploughing fertilizer
.

Prices continue to rise

Affected by factors such as supply and demand, the price of potassium chloride has continued to rise since the beginning of this year
.
Industry insiders said that under the background of high uncertainty in overseas supply, the global potash fertilizer supply is tight, and the price has reached a nearly 10-year high
.
The latest market data shows that on April 12, the price of imported 60% potassium chloride was 4980 yuan / ton - 5800 yuan / ton
.

East Asia Qianhai Securities Research Report said that in the context of limited supply, global potash fertilizer prices may rise in 2022
.

The data shows that the average ex-factory price (arrival price) of potassium chloride in the first quarter of Salt Lake Co.
, Ltd.
was 3,667 yuan / ton, an increase of 15% month-on-month and a year-on-year increase of 76%
.
In the first quarter, the company's potassium chloride production and sales were 1.
14 million tons and 1.
45 million tons respectively
.
Salt Lake Co.
, Ltd.
said that the price of foreign trade contracts has a certain guiding effect on the market price
.
As a leading enterprise in the domestic potash fertilizer production industry, the company's sales price of potassium chloride plays an important leading role in the market, and the company's product pricing will comprehensively consider various factors
.

Shenwan Hongyuan believes that from 2021 to 2023, the global new production capacity will be 2.
75 million tons, and the withdrawn production capacity will be 2.
04 million tons.
Combined with the increase in downstream planting area and the recovery of bioethanol demand, the actual operating rate of global potash fertilizer in 2021 will reach 87%, which is expected to Maintain a tight balance between supply and demand for a long time
.
The profitability of the potash fertilizer segment of Salt Lake will continue to improve
.