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Concerning the momentum of continuous rise in urea prices since last November, the China Nitrogen Fertilizer Industry Association issued an initiative to stabilize urea prices on April 24, calling for companies to ensure supply and stabilize the market.
On May 7, the Department of Economic and Trade Affairs and Price Division of the National Development and Reform Commission, the Department of Raw Materials of the Ministry of Industry and Information Technology, and the China Nitrogen Fertilizer Association, invited 32 domestic urea production companies to analyze the causes of the current abnormal increase in urea prices, and demanded that key production enterprises take the lead in binding business practices and consciously strengthen Management, stabilize the market.
On May 11, Li Shousheng, executive vice president of the China Petroleum and Chemical Industry Federation and chairman of the China Nitrogen Fertilizer Industry Association, said that the nitrogen fertilizer industry should attach great importance to this issue and take effective measures to prevent the market from ups and downs and maintain a hard-won steady Faster development.
What have been the effects of the controls, such as initiatives and interviews since April? To this end, the reporter conducted an investigation interview with a urea company in Shanxi Province.
The survey shows that the annual output of urea in Shanxi is nearly 7 million tons, ranking second in the country. The demand in Shanxi Province is relatively small, and the sales of chemical fertilizer account for more than half of the total output. At present, urea companies in Shanxi Province, like most urea companies in most parts of the country, have normal production and have more orders in the early stage. Most manufacturers control orders and control urea prices. Listing prices are lowered at a high level of 2,450 yuan/ton, and most companies are quoting factory prices. Maintained at around 2,400 yuan per ton.
Shanxi Fengxi Fertilizer Industry (Group) Co., Ltd. has made unified arrangements for the production and supply of chemical fertilizers of the group, and urged production companies to go all out to ensure stable production of chemical fertilizers. At present, the company's annual production capacity of 1.8 million tons of urea plant is normal, with a daily output of 4,000 tons of urea, and the shipment is stable. At present, the price of large-granule urea is 2,230 yuan per ton, and that of small-particle urea is 2,200 yuan to 2,220 yuan per ton. The main product of the enterprise is for the local market and the shipment is stable.
Wang Zhonggang, general manager of the company, said that although the market conditions are promising, as a large-scale state-owned fertilizer company, Shanxi Fengxi Fertilizer, on the basis of quality and quantity, must strive to improve service quality and truly implement services for agriculture, rural areas and farmers. They also require the clerk to be a "service worker" and an "agricultural commissioner."
Shanxi Tianze Coal Chemical Company's urea plant is currently producing normally with a daily output of 4,500 tons of urea. The company's small particle urea quoted at 2,150 yuan per ton, large particles of urea quoted at 2,180 yuan per ton, large particles of urea are mainly sent to the south and northeast, small particles of urea mainly supply the surrounding areas. The total annual production capacity of 1.2 million tons of urea plant of Shanxi Lanshan Science and Technology Venture Co., Ltd. is operating normally, and the manufacturer's sales are stable.
In order to allow the majority of farmers to use fertilizers in a timely manner, Shanxi Jinfeng company, a two-pronged approach, around the production and transport efforts, to ensure that high-quality urea output, shipped out. At present, the company's daily production of urea is stable at 3,600 tons, and the daily foreign urea is stable at 2,500 tons, effectively guaranteeing the need for spring plowing and fertilizer.
Shanxi Coal Chemical Industry Association experts said that urea product pricing by the coal, electricity and other upstream raw material prices have a great impact, as long as the upstream prices are not excessive, companies will do their best to digest costs. At present, the backbone enterprises in Shanxi Province conscientiously and self-disciplined, stabilizing the current urea market, and the effect of urea-producing enterprises stabilizing their prices to “save the market†has become apparent.
Taking Shanxi Jinmei Coal Group as an example, the Group expects to produce 11.25 million tons of urea in 2012, making it the largest coal chemical production enterprise in the country and the largest nitrogen fertilizer production enterprise in China. In order to stabilize the price of urea, Jinmei Coal Group's subsidiaries Shanxi Jinfeng, Henan Jinkai, Shandong Mingshui, Jiangsu Hengsheng, Hubei Saning, Hubei Huaqiang, Zhejiang Jinju and other 21 chemical fertilizer enterprises recently held Jinmei Group coal chemical industry. Panel 2012 Fertilizer Market Situation Seminar.
Wang Yi, deputy general manager of the group, requested that the Jinmei Coal Group be a state-owned holding company and must take certain social and political responsibilities while pursuing economic benefits. Shanxi Coal Group is willing to cooperate with relevant state departments and firmly respond to the initiative of the Nitrogen Fertilizer Association to actively organize the current production, ensure market supply, operate with integrity, strictly enforce the contract, and not follow the trend of price increase, and use actual actions to stabilize the nitrogen fertilizer market. Further measures constrain the fertilizer production companies involved to protect and support agricultural production.
Currently, the group each urea companies have been price adjustments reflect the spirit of the initiative. For example, in the Henan region, the production starts are basically normal, the products are supplied to the provincial market, and some are sent to the southern region. The prices of mainstream products are stable.
Zhang Liping, secretary general of the Coal Chemistry Association of Shanxi Province, stated: “Fertilizer is the material basis for increasing agricultural production and increasing farmers' income. The quality and price of chemical fertilizers are related to the social credibility of the fertilizer industry.†At present, the temporary effect of the interview and the proposal is obvious, and the price is basically stable. . However, judging from the current market supply and demand situation, the government should also regulate and control exports. This hopefully will really play a role in curbing the rise in urea prices; industry associations should play a role as a bridge link and guide the healthy development of the fertilizer industry; enterprises should be highly responsible. To strengthen self-discipline, enterprises need to appropriately reduce profits, reflect social responsibilities, and jointly promote stable and rapid development of the industry. â€
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