There is a saying: "Fertilizer companies are harder, and nitrogen fertilizer companies are more difficult." In recent years, nitrogen fertilizer companies have been facing a difficult period. According to petrochemical industry profits and main business income data, the oil and natural gas extraction industry's profit margin reached 30.62% in 2010, while the fertilizer manufacturing industry's profit margin was only 4.70%. Among them, the production of phosphate fertilizer was 4.06%, the production of compound fertilizer was 5.50%, the production of organic fertilizer and microbial fertilizer was 6.52%, and the production of urea was only 1.73%. It was the industry with the lowest efficiency in various industries of the petrochemical system. However, this year's situation has undergone major changes. Nitrogen fertilizer companies have turned their backs and the overall situation has improved.
Nitrogen Fertilizer Business Frequent Announcement
Immediately after the first half of the year, there was a lot of news from the nitrogen fertilizer companies.
It is understood that Shanxi Fengxi Huarui produced a total of 102241.9 tons of synthetic ammonia and 17,1588.9 tons of urea in the first half of the year, and achieved a profit of 81,829,900 yuan. It achieved a production and profit margin of more than half, especially in the first half of this year, it achieved 136.39% of its annual profits. Shen Dongsheng, deputy general manager of Shanxi Jinfeng Company, said that in June alone, they shipped more than 80,000 tons, and the selling price per ton of urea was 150-180 yuan higher than that in May. Only this one month increased the company's earnings. More than 1,200,000 yuan. In the first half of the year, Hubei Saning Chemical Co., Ltd. has completed a total industrial output value of 2,578.797 million yuan, an increase of 69.4% over the same period of last year. Accumulative production of 236,600 tons of urea is expected to create a miracle of producing 400,000 tons of urea with a capacity of 300,000 tons.
The listed nitrogen fertilizer companies also performed well. Sichuan Meifeng's semi-annual performance forecast stated that the net profit attributable to shareholders of listed companies in the first half of the year is expected to be 91.9 million to 108 million yuan, an increase of 70% to 100% year-on-year. The main reason for the increase in performance was mainly due to the large increase in urea price and stable sales. Liao Tong Chemical's semi-annual performance forecast stated that it expects its first-half profit to be 460 million to 480 million yuan, an increase of 113% to 122% year-on-year. One of the main reasons for the increase in performance was the large increase in the price of urea products in the second quarter. Jiangsu Huachang Chemical expects to achieve a profit of 25 million to 30 million yuan in the first half of the year, which will turn a profitably year-on-year profit. The price of ammonium chloride, urea and other products will increase and the gross profit margin will increase.
The sharp rise in prices is the main reason
In the first half of this year, the profitability of nitrogen fertilizer companies has improved significantly. The main reason is that the sales price of products has risen sharply.
According to statistics released in early July, compared with the same period of last year, the price of fertilizers did increase significantly this year. Except that the price of one species of diammonium phosphate rose by less than 20%, the other varieties all increased by more than 20%. In contrast, the growth rate of nitrogen fertilizer was higher than that of phosphorus and potash fertilizer and compound fertilizer. The biggest increase in nitrogen fertilizer was ammonium sulfate, which rose by 100%; followed by ammonium chloride, which increased by 72.41%; the most important nitrogen fertilizer urea increased by 41.98%; and the other two nitrogen fertilizers rose by ammonium bicarbonate and ammonium nitrate. It also exceeded 30%. Of course, the price in July was at this year's high, so there was a big increase compared to the same period last year. But even from the January-June period of this year, the price of nitrogen fertilizers is also rising.
From the perspective of production costs, this year's coal prices rose by 20% to 40% compared with the same period of last year, increasing production costs by 200 to 300 yuan. From June 1st last year, the price of natural gas was increased by 0.23 yuan per cubic meter, plus the pipeline transportation fee of 0.08 yuan raised on April 25 last year, which was increased by 0.31 yuan in total, and required 600 to 800 cubic meters of natural gas per ton of urea produced. This is equivalent to an increase in urea cost of 186 to 248 yuan, plus the increase in electricity prices, artificial wages and other factors, the production costs are still 20 to 50 yuan increase. Overall, the increase in nitrogen fertilizer prices this year exceeds the increase in production costs. In particular, those companies with resource advantages, scale advantages, or high management levels and well-controlled production costs have greater profitability.
Enterprises need to "grasp"
The major reasons for this year's sharp increase in nitrogen fertilizer prices are rising production costs, sharp increases in international fertiliser prices, rising prices of agricultural products, and inflation. From the current situation, these factors continue to exist, fertilizer prices can be cautiously optimistic about the market outlook. Therefore, some experts have warned that the nitrogen fertilizer industry has entered the best period of profitability in recent years. As a production enterprise, it is imperative to achieve two “squeezingâ€:
First, we must pay close attention to production. Enterprises should seize this opportunity that has been difficult for many years, and try every means to fully increase production, increase production, achieve stable production, and earn more profits. The second is to pay close attention to technological transformation. Due to the downturn in the industry in the previous years, enterprises faced many difficulties and many companies did not engage in technological transformation. Now that the company has money, it is a good time to engage in technological transformation. From the perspective of future development trends, due to the apparent surplus of nitrogen fertilizer production, it is expected that the current good days of easy money making will not be too long. In the future, companies may be trapped in a new round of fierce competition. When the cost is low, whoever will compete will be Win in the game. Therefore, enterprises must step up their technical reforms and lower their production costs.
V Series Solenoid Valve, VF Solenoid Valve, VZ Solenoid Valve
Fenghua QITE pneumatic&hydraulic Equipments Manufactory , http://www.qt-pneumatic.com