On April 12, the leading enterprises of potassium chloride Qinghai Salt Lake Industry Co.Ltd(000792) , zangge mining released the performance forecast for the first quarter of 2022 Qinghai Salt Lake Industry Co.Ltd(000792) it is estimated that the net profit in the first quarter will be 3.45-3.55 billion yuan, with a year-on-year increase of 334.98% – 347.59%; Zangge mining is expected to have a net profit of 780 million yuan to 830 million yuan in the first quarter, with 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 sales season. At present, the supply of main products is tightening and will strive to ensure the downstream supply.
first quarter production and marketing boom
Qinghai Salt Lake Industry Co.Ltd(000792) potassium chloride production ranks first in Asia. In 2021, the company produced about 5.02 million tons of potassium chloride, sold about 4.65 million tons of potassium chloride and accumulated about 370000 tons of potassium chloride. With a mining area of 724.35 square kilometers and an annual production capacity of 2 million tons, zangge mining is the second largest production enterprise in China’s potassium chloride industry.
The reporter learned from the two listed companies that under the circumstances of strong market demand and high prices of imported potash fertilizer, Chinese potash fertilizer production enterprises such as Qinghai Salt Lake Industry Co.Ltd(000792) , zangge mining and so on have guaranteed full production, supply and price stability, playing a “stabilizer” role.
Qinghai Salt Lake Industry Co.Ltd(000792) disclosed the performance forecast for the first quarter. During the reporting period, the production and sales of the company’s main business potassium chloride 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% respectively month on month. Zangger mining said that in the first quarter, the sales volume of its subsidiary Zangger potash fertilizer potassium chloride products increased, the sales price continued to rise, and the operating revenue and profit increased significantly compared with the same period of the previous year.
Zangger mining said that due to changes in transportation costs and other factors, the company raised the price of products by a small margin in March. At present, the price of potash fertilizer in China has stabilized, with a price difference of more than 1000 yuan per ton with imported potash fertilizer. At present, it is the season of spring ploughing, the supply is tightening, and the enterprise inventory is close to the historical low. The company will continue to ensure full production, supply and stable price, and strive to ensure the supply of spring ploughing.
Zangger mining said that the peak sales season of potassium chloride was concentrated in the second quarter. At present, the company has a design capacity of 2 million tons, the annual production of potassium fertilizer is about 1.1 million tons, and the downstream demand is stable. In order to improve the preparation of potash fertilizer during spring ploughing, the company responded to the national call, actively stabilized the yield and guaranteed the price, and increased the yield of fertilizer preparation for spring ploughing.
prices continue to rise
Affected by the relationship between supply and demand and other factors, the price of potassium chloride has remained high since this year. Industry insiders said that under the background of high uncertainty in overseas supply, the global potash supply is tight and the price has reached a high level in recent 10 years. According to the latest market data, 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 under the background of limited supply, the global potash price may rise in 2022.
According to the data, Qinghai Salt Lake Industry Co.Ltd(000792) in the first quarter, the average ex factory price (arrival price) of potassium chloride was 3667 yuan / ton, up 15% month on month and 76% year-on-year. In the first quarter, the output and sales volume of potassium chloride of the company were 1.14 million tons and 1.45 million tons respectively Qinghai Salt Lake Industry Co.Ltd(000792) said that the price of large foreign trade contracts has a certain guiding effect on the market price. As a leading enterprise in China’s potash fertilizer production industry, the sales price of potassium chloride plays an important leading role in the market. The pricing of the company’s products will comprehensively consider various factors.
Shenwan Hongyuan Group Co.Ltd(000166) believes that from 2021 to 2023, the global new capacity will be 2.75 million tons and the withdrawal capacity will be 2.04 million tons. Combined with the improvement of downstream planting area and the recovery of bioethanol demand, the actual operating rate of global potassium fertilizer will reach 87% in 2021, which is expected to maintain a tight balance between supply and demand for a long time The profitability of Qinghai Salt Lake Industry Co.Ltd(000792) potash fertilizer sector will continue to improve.
