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Fertilizer industry needs duty-and two-pronged inhibition of excess production capacity by grehh hernjer





Article Author Biography
Fertilizer industry needs duty-and two-pronged inhibition of excess production capacity by
Article Posted: 08/08/2011
Article Views: 76
Articles Written: 1951
Word Count: 909
Article Votes: 0
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Fertilizer industry needs duty-and two-pronged inhibition of excess production capacity


 
Business,Business News,Business Opportunities
By domestic demand and excess capacity, lack of multiple factors, domestic Fertilizer Industry is facing financial difficulties. It is reported that China Oil And Chemical Industry Association has suggestions to the Ministry of Information Industry and the abolition of tariffs on fertilizer exports of seasonal differences, the implementation of tariff.



Prior to this, the State Council by the end of June was declared on July 1 this year to adjust the export tariffs on some fertilizer products.



Public information, the last round of adjustments, the authorities have lifted some of fertilizers and fertilizer raw materials of special export tariffs, including yellow phosphorus, phosphate rock, ammonia, phosphoric acid, ammonium chloride, triple superphosphate, Binary Compound And so on, a total of 27 products.



Addition, adjustment Urea Phosphate An ammonium Phosphate Diammonium 3 fertilizer products such as export tariffs of short, high season, low season urea export tax rates will be extended for one month, monoammonium phosphate, diammonium the off season to extend the export tax rate applicable to one and a half hours.



Some of the industry this as a country through export of surplus production capacity of domestic digestion, alleviate the serious oversupply of the domestic fertilizer industry, an important measure. Now export tariffs again mentioned the way to zero tariffs to encourage exports are considered a more thorough self-help approach.



Once implemented zero tariff would be implemented before the part of the fertilizer raw materials and export tax to be completely liberalized, including the July 1 implementation of the phosphorus still continue to impose export tariffs on 20% of other P, P ore 10% to collection? temporary export tariff of 35% of ammonia, phosphoric acid, ammonium chloride, triple superphosphate, compound fertilizer and other chemical products (including industrial use of chemical fertilizers) 10% uniform levy provisional tariffs on exports .



In fact, since the fourth quarter of last year, the domestic N , Compound fertilizer and other industry overcapacity, increasingly prominent problem, generally lower prices, capacity utilization fell sharply, stays at around 70%.



But not all companies are facing serious losses, newspaper reporter found that some relatively advanced technological level of production companies are operating at full capacity, they are by-product of fertilizer to expand profit margins.



"Although the price of fertilizer are much lower than before, fertilizer product itself is not much profit, but the additional profits through the production of products available. Sulfuric acid to produce chemical raw materials, for example, although the cost of producing one ton of sulfuric acid is 300 element, the current market price per ton of sulfuric acid is only about 200 yuan, but its by-products of steam and iron slag can be sold only to produce one ton of sulfuric acid will be able to sell iron slag produced nearly 200 yuan, or have profit margins. " China Fertilizer network executive editor Dushuang Jiang told China Economy Times reporter noted that, although compared to before, most fertilizer manufacturers profit margins have been drastically reduced, but taking into account the value of by-products, and no overall loss situation.



Increase the elimination of backwardness, efforts to optimize the structure



Market economy through rapid expansion of fertilizer industry overcapacity is becoming increasingly prominent. Previously published outside the "petrochemical industry restructuring and revitalization plan" to chemical fertilizers as petrochemical industry, eliminate backward production capacity in key areas, through the big pressure on the fertilizer business is small, capacity replacement, eliminate backward technology, pollution, irrational use of resources capacity.



Interview people worried that the implementation of zero tariffs on fertilizer exports, could make a serious oversupply of production capacity has continued to expand.



The end of 2008, China has become the world's nitrogen fertilizer and P The first producing countries, in addition to K Needs to import, the other showed a different degree of chemical excess.



Data show, this year's new fertilizer production capacity of about 4.3 million tons, total capacity will reach 63 million tons, while the sum of the national industrial and agricultural fertilizer use 52 million? 53 million tons, more than 10 million tons production capacity surplus.



Accompanied with the excess capacity is shrinking foreign demand for fertilizer. Financial crisis , The global area of almost all crop varieties are being curtailed, resulting in sharp drop in demand for fertilizer, China's fertilizer exports will face more price pressure.



In Du Shuangjiang view, in the absence of price and cost advantage of the premise, rather than simply digestion by stimulating the export of domestic excess capacity, it is better to increase elimination of backward production capacity, optimizing the industrial structure of the force.



"A lot of nitrogen fertilizer production and consumption of coal is, therefore, be regarded as an indirect export of fertilizer exports of coal, and coal is the country's strategy Energy . And even if the elimination of tariffs, and no gas has an advantage, because oil prices have gone down the cost of ammonia gas system greatly reduced. "Hubei Yihua (000 422), a person told reporters that the international market, the sharp decline in natural gas prices, making it significantly reduced the production cost of urea, compared to coal as the main raw material cost advantage of China's urea is more evident.

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