The prosperity of the chemical fertilizer market continued, and the performance of many chemical fertilizer companies increased in the first quarter of this year.
According to the data, as of April 18, 14 Listed Companies in the chemical fertilizer sector have disclosed the performance forecast for the first quarter of 2022, of which 13 have increased their performance in advance and 12 have a year-on-year increase in net profit of more than 1.25 times. In the performance forecast of several fertilizer companies, the key factor of performance rise is “booming production and marketing”.
During the spring ploughing season, Yunnan Yuntianhua Co.Ltd(600096) and other companies also actively responded to the national fertilizer reserve policies such as “light fertilizer storage” and “summer managed fertilizer”, which not only ensured the market supply with high load production, but also actively coordinated logistics and transportation and delivered goods in time.
key words: booming production and marketing
The rise in the price of chemical fertilizer products is the main reason for the performance growth of chemical fertilizer production companies in the first quarter. Several companies said that the market sales prices of major chemical fertilizer products rose, and the production and sales volume also rose year-on-year.
In terms of potash fertilizer, Zhang Jie, analyst of Longzhong information potash fertilizer, told the Securities Daily: “in the state of continuous shortage of potash supply in China, as of the end of the first quarter, 62% of the market price of potash chloride in China was strong, and the port price was mostly 4900 yuan / ton to 5050 yuan / ton.”
Affected by this, the performance of listed companies whose main product is potassium fertilizer increased significantly in the first quarter: Qinghai Salt Lake Industry Co.Ltd(000792) it is estimated that the output of potassium chloride in the first quarter of this year is about 1.14 million tons, the sales volume is about 1.45 million tons, and the net profit increased by 334.98% to 347.59% year-on-year. Zangge mining is expected to realize a net profit of 780 million yuan to 830 million yuan attributable to shareholders of Listed Companies in the first quarter, with a year-on-year increase of 625.37% to 672.05%.
“At present, Hubei monoammonium phosphate 55 powder leaves the factory at 3550 yuan / ton to 3650 yuan / ton, an increase of 2.84% over the beginning of April,” Li Lingxin, an ammonium phosphate analyst at Longzhong information, told the Securities Daily
Wei Qian, an analyst at Longzhong information diammonium phosphate, told reporters: “in March, diammonium phosphate enterprises received sufficient orders in advance, and most of them were to be sent near late April.”
From the perspective of nitrogen fertilizer, China’s urea market showed a volatile downward trend, but the decline was small. Wu Yuanli, an analyst of Longzhong information urea industry, told the Securities Daily: “at present, the daily output of urea industry basically fluctuates at the level of 160000 tons, which is about 10000 tons higher than that in the same period, and the supply level in China is relatively higher than that in the same period.”
“Behind the remarkable achievements of many chemical fertilizer enterprises, on the one hand, they benefit from the high price level of chemical fertilizer, on the other hand, it is the cost control.” Wu Yuanli said.
multi focus on ensuring supply and price
In the case of booming production and marketing in the chemical fertilizer industry, Yunnan Yuntianhua Co.Ltd(600096) and other enterprises also pay attention to the production pressure brought by the rise of chemical fertilizer price to farmers, and put forward “do a good job in ensuring the supply and price of chemical fertilizer”.
First of all, the premise of ensuring supply and price stability is to ensure the supply of chemical fertilizer products in the market Yunnan Yuntianhua Co.Ltd(600096) relevant person in charge told the reporter of Securities Daily: “in order to ensure the production of chemical fertilizer during spring ploughing, Yunnan Yuntianhua Co.Ltd(600096) give full play to the scale advantages, technical advantages and safety and environmental protection advantages of large-scale production units, so as to ensure the stable production of chemical fertilizer units with high load and give full play to the production capacity of units.”
“After the spring ploughing advance orders are full, the enterprises actively produce and ship, and the overall operating load is maintained at a high level,” Wei Qian said
Secondly, the dredging of chemical fertilizer logistics and transportation channels is also an important measure to ensure supply and price stability. Since the beginning of this year, with the gradual rise in the transportation demand for spring ploughing materials and bulk goods, the railway department has paid attention to epidemic prevention and control and transportation production. The reporter of Securities Daily learned that the railway transportation in Yunnan has increased steadily, providing transportation capacity support for ensuring and stimulating local economic development.
China Railway Kunming bureau group said that the company actively expanded its freight business, grasped the market changes such as the increased demand for festival material transportation and the increased transportation volume of agricultural materials and vegetables in spring, increased the input of transportation capacity, and greatly released the railway transportation capacity. In view of the fact that there are many goods arriving in Yunnan, we have actively improved the unloading organization, eliminated the unloading congestion points, and continued to increase the unloading capacity. Since March, the daily average of standard rail unloading has been 5494, an increase of 8% year-on-year, which has greatly improved the transportation efficiency of the last kilometer of freight transportation, and the indicators such as goods delivery, standard rail loading and unloading have achieved year-on-year growth.
Wei Qian believes that due to the impact of the epidemic, many places are facing the impact of “unable to send out spring ploughing fertilizer” and “unable to transport raw materials”, so the local operating rate has declined. How to solve the problem of “the last kilometer” of transportation is more urgent. It is suggested to open a green channel for automobile transportation and increase the number of freight vehicles to ensure smooth transportation of spring ploughing fertilizer.
In this case, Yunnan Yuntianhua Co.Ltd(600096) said that it has opened up a “green channel” for fertilizer for spring ploughing in the links of transportation and delivery; It is also improving the loading and unloading level and speeding up the vehicle transportation cycle. Under the influence of the epidemic, the long-distance automobile transportation delivery is not smooth, and the enterprises actively coordinate the fire transportation delivery to ensure that the fertilizer for spring ploughing reaches the mainstream market in time.
“At present, diammonium phosphate spring farming market has entered the final stage, and farming has begun in Liaoning, Jilin and other places. The follow-up market is dominated by a small amount of supplementary orders, and the market supply is relatively sufficient.” Wei Qian said.
“xiaguanfei” has been launched
The reporter of Securities Daily learned that the fertilizer preparation time for spring ploughing in China generally lasts from about October to March next year, which is known as “light fertilizer storage”. This year, the national development and Reform Commission also added a temporary fertilizer reserve “summer management fertilizer”, playing a “combined fist” of ensuring supply and stabilizing price.
According to the live broadcast news of China Central Television on April 17, since March this year, relevant departments have successively deployed and put into the market two batches of more than 6 million tons of spring ploughing reserve fertilizer and 1 million tons of national potassium fertilizer reserve to fully ensure the demand for spring ploughing fertilizer. Among them, the State Reserve potash fertilizer began to be put into main grain producing areas in late March, which is lower than the spot price in the market.
According to the bidding documents of the national development and Reform Commission, the temporary reserve of summer management fertilizer in 2022 will be stored from the date of issuance of the notice on relevant reserve tasks by the state to February 28, 2022, and from March 1 to May 31, 2022. The application of Xiaguan fertilizer will be in June this year, followed by “light fertilizer storage”, and the fertilizer may also be guaranteed this summer.
Yunnan Yuntianhua Co.Ltd(600096) relevant person in charge said: “as a large listed state-owned enterprise related to agriculture in China, Yunnan Yuntianhua Co.Ltd(600096) actively undertakes the social responsibility of China’s fertilizer reserves and price stability, and fully completes the tasks of China’s’ light fertilizer storage ‘and’ summer fertilizer management ‘reserves while implementing the’ Three Guarantees’ and ‘two stabilities’ policies.”
Zangger mining said that in order to improve the preparation of potash fertilizer during spring ploughing, the company responded to the national call, actively stabilized production and guaranteed price, and increased the output of fertilizer preparation for spring ploughing. 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.
