China's chemical fertilizer industry is in a "comprehensive emergency": a loss of 300 yuan per ton sold

In the program a few days ago, we saw that although there are various problems in the development of new energy such as solar energy, wind energy and clean technology, the future is an important direction for countries to look for alternative energy. Well, today we will focus on the traditional coal chemical industry in traditional energy sources. Coal is not only the fuel, but also the main raw material for the production of chemical fertilizer. Chemical fertilizers include nitrogen fertilizer, phosphate fertilizer, potash fertilizer and compound fertilizer, of which nitrogen fertilizer accounts for about 73% of the total output of chemical fertilizer, which is the largest agricultural consumption in China. However, since the beginning of this year, the nitrogen fertilizer and even the entire chemical fertilizer industry has experienced unprecedented difficulties, and even the whole industry has lost money. What on earth is going on? Let's see the reporter's investigation.

Chemical fertilizer enterprises lose more than 100 million yuan in half a year if they stop production.

In late July, a CCTV financial "Economic half hour" reporter came to Jincheng, Shanxi Province, which is not only an important anthracite producing area, but also a national fertilizer production base. Jinmei Tianyuan Chemical Co., Ltd., located in Gaoping City, Jincheng, is one of the largest local urea producers, with an annual output of nearly 800000 tons of urea. Zhang Jinjun, who was transferred here as general manager just three months ago, has been feeling the pressure recently.

Zhang Jinjun, general manager of Jin Coal Tianyuan Chemical Co., Ltd.: there is a lot of pressure. I can't sleep at night.

Zhang Jinjun told reporters that Jin Coal Group transferred him to this factory in the hope that he can change the situation that the factory has been losing money since last year, but in the first half of this year, under the market situation where urea prices remain low, Tianyuan Chemical is still in a state of loss.

Zhang Jinjun: loss, loss is still relatively large.

Interviewer: how much is the loss?

Zhang Jinjun: more than one hundred million.

Interviewer: half a year?

Zhang Jinjun: I lost more than 100 million in half a year.

Zhang Jinjun and the reporter calculated that at present, Tianyuan Chemical's total cost of producing one ton of urea, including raw materials, manpower, finance, and management, is about 1800 yuan per ton, while the market price of urea at the end of June is 1580 yuan per ton, equivalent to a loss of 220 yuan per ton of urea. Zhang Jinjun said that although the more production, the more losses, the factory is still at full capacity, because if production is stopped, the loss may be greater.

There is a loss of 220 yuan for every ton of urea produced, but it has to continue production.

Zhang Jinjun: under your current load, especially in this case, the production reduction cost of your device is even higher, because it is impossible for the employee to reduce his income, so we still try our best to reduce the cost. only after we try to open the load of the following equipment conditions, the cost can be reduced, the maintenance expenses can be reduced, and the various expenses can be reduced, and then our management will also begin to compress and reduce wages.

Tianyuan Chemical is a coal chemical enterprise controlled by Shanxi Jin Coal Group, which is an important high-quality anthracite production enterprise and the largest coal chemical enterprise group in the country. It has 18 chemical fertilizer production enterprises in the country, with a urea output of 13.6 million tons in 2013, accounting for 19% of the national urea output. Kang Shuxin, deputy general manager of the Coal Chemical Division of Shanxi Jin Coal Group Co., Ltd., told reporters that in the past six months, most of the chemical fertilizer production enterprises belonging to Shanxi Coal Group have been in a state of loss.

Kang Shuxin, deputy general manager of the Coal Chemical Division of Shanxi Jin Coal Group Co., Ltd.: from January to June, 4 companies made a profit, 14 made a loss, and the total loss was about 830 million.

Not only is the nitrogen fertilizer enterprise of Shanxi Coal Group, which accounts for nearly 1/5 of the country's nitrogen fertilizer output, an overall loss, Tianji Coal Chemical Group Co., Ltd., located in Changzhi, Shanxi Province, is also facing huge losses.

Chang Xuehua, general manager of Shanxi Tianji Coal Chemical Group Co., Ltd.: I think it is the most stressful year for our enterprise. I have never encountered this before.

Tianji Chemical, formerly known as Shanxi Chemical Fertilizer Plant, is a coal chemical enterprise producing nitrophosphate fertilizer, with an annual output of 900000 tons. In the past two years, the operating income of the factory has been declining rapidly.

Chang Xuehua: the year before last, the situation was even better than last year. In the six months before last, we made a profit of more than 30 million. Last year, we made a profit of about 10 million. There has been a loss of 90 million this year.

Chang Xuehua told reporters that the current ex-factory price of their chemical fertilizer is about 1710 yuan per ton, but the total cost of their one ton of chemical fertilizer is about 2100 yuan per ton, which means that they will lose more than 300 yuan per ton of chemical fertilizer. They are also grit their teeth and insist on production.

Chang Xuehua: the operation of its device is to run continuously. After stopping, one is that the safety of the device can not be guaranteed. The second is that after stopping, in fact, the wages of the personnel will also be paid, and the depreciation of the equipment will have to be pasted, so at present, we can only stick to the operation with clenched teeth.

Interviewer: not even stop, not even stop.

Chang Xuehua: yes, it is.

Shanxi is the second largest province of urea output and the largest exporter of chemical fertilizer in the country. Among the 35 chemical fertilizer production enterprises in the province, there are 18 urea production enterprises, with an output of 4.05 million tons in 2013, accounting for 12% of the total output of the country. According to the statistics of Shanxi Coal Chemical Industry Association, Shanxi urea enterprises suffered serious losses in the first half of this year, with a loss area of 45.5%.

CCTV Finance and Economics "Economic half hour" reporter learned from the China Nitrogenous Fertilizer Industry Association that not only Shanxi Province, but also the chemical fertilizer industry has suffered overall losses since the beginning of this year.

Li Shousheng, chairman of China Nitrogenous Fertilizer Industry Association: in the same period last year, our nitrogenous fertilizer was profitable, but this year our nitrogenous fertilizer is losing money for the whole industry.

Interviewer: why did this happen?

Li Shousheng: because the demand is decreasing and the overcapacity is in excess, the price of our chemical fertilizer has dropped substantially, and the market sales price in many areas has fallen below the cost price of production. Therefore, the whole industry is in a state of loss. From January to May, the whole industry lost 2.36 billion yuan, which is more than 160% lower than that of the same period last year.

Statistics from the China Nitrogenous Fertilizer Industry Association show that from January to May this year, the national average ex-factory price of urea was 1568 yuan per ton, down 24 percent from the same period last year. In May, the average price dropped to 1400 yuan per ton. From January to May, the industry lost 2.36 billion yuan and 163enterprises lost money. In the same period last year, the profit of the whole industry reached 3.7 billion yuan, and the total profit decreased by 163.7 percent compared with the same period last year.

Li Shousheng: output is also declining, output is down 0.6%, but the price is down 24%, so our business income is also down 5.1%, which is the whole decline. The situation of nitrogenous fertilizer production is very severe, and the difficulties are still aggravating.

With declining production, falling prices and losses in the industry, the chemical fertilizer industry in the traditional coal chemical industry is facing the most severe situation in the last 10 years. So why the sudden decline? What is the reason behind it? Let's take a look at the reporter's next investigation.

The price of coal has fallen sharply. Urea suffers from pond fish.

During the interview, the reporter learned that since the second half of the year, driven by a sharp drop in coal prices, the price of urea products has been declining all the way, from 2500 yuan per ton in the second quarter of 2012 to 1400 yuan per ton in May this year, a drop of 44 percent. There is no doubt that the sharp decline in the terminal price of urea is the most direct cause of the overall loss in the urea industry.

Zhang Jinjun: the whole market of coal is declining, and the decline of coal will inevitably lead to a reduction in the price of urea. And the price reduction is greater than that of coal. Because the entire agricultural material industry is very sensitive to this coal. If the coal moves slightly, urea must be (follow). Moreover, before the coal moves, urea begins to fall.

Zhang Jinjun gave an analogy to CCTV's Economic half hour reporter: for example, if coal is reduced by 50 yuan, urea may not be reduced by 50 yuan, not more than 50 yuan, maybe 80 yuan, maybe 100 yuan. Because these agricultural materials industries are all doing business, if it sees a drop of 50%, whether it is going to be reduced or not, its enthusiasm for taking goods is not high. Often, it is waiting and watching. As soon as it is produced by enterprises, it is impossible to keep pressure on the treasury here for a short time, and it will have to go out at low prices for a long time. Therefore, Tianyuan Company is obvious. Its inventory is 5,000 to 6,000 tons, but when it reaches 8,000 tons, it will be full, and it will not be able to operate. It has to reduce its price and sell for export. This is the case.

"compress the storehouse" chemical fertilizer

Li Shousheng, chairman of the China Nitrogenous Fertilizer Industry Association, told CCTV Financial "Economic half hour" that since the beginning of this year, the environmental change of China's slowing macro-economic growth is bound to have an impact on the nitrogen fertilizer market. According to statistics, from January to May this year, the apparent consumption of chemical fertilizer decreased by 7.1%, including 8.6% for nitrogen fertilizer and 9.2% for urea. Li Shousheng believes that the decline in demand for chemical fertilizer market is one of the reasons for the aggravation of difficulties in the chemical fertilizer industry this year, and the more important reason is the serious overcapacity in the chemical fertilizer industry.

Li Shousheng: our national urea production capacity has now reached 81 million tons, but our entire demand, including domestic demand, including exports, including industrial demand, adds up to 65 million tons. So our entire production capacity and demand is about 15 million tons more than ours.