China's potash industry needs return to rational development – potash industry, potash fertilizer – chemical industry
July 30, 2009 in China Inorganic Potassium Salt Industry Association, the new branch of industry, the first president of the Council work meeting held successfully in Shanghai. Salt Lake Industry Group Co., Ltd., Xinjiang Lop Nur potash Total company, Sinochem Holdings Co., Ltd., Executive Vice President and Vice President of all units participate. After the branch president Li Gang at a press conference on the development of China's potash industry views on key issues and put forward a rational view of China from the five areas of the potassium salt () industries.
K Industry is not huge profits industry
From potash prices are rising, the "K is a lucrative industry," "should impose a windfall profits tax on potash," the statement often found in newspapers, for the export of domestic potash fertilizer producers, many people are quite critical of the practice. In this regard, Li Gang corrected "K is a lucrative industry in China" argument, he pointed out that China's potash fertilizer producers are not as stated in the outside world are lucrative industry, the inputs and outputs from the investment perspective than many other industries than in high .
Need to involve the production of potash exploration, development, large-scale production of a long process, and N And Compound Industry raw materials can only be started at any time in different factories, potassium ore exploration long process is needed is enormous capital investment, but also face the risk of the product can not be output. Qinghai Salt Lake Industry Group, for example, from 1958 until 2000, all factories in the state of input than output, enterprises operating at a loss, really profitable until 2001, the most direct reason is the loss sylvite development process required a great investment. And a large potash production base in China are in a life basically restricted to the difficulty of exploitation can imagine, so in recent years potassium Sell The improvement of the situation does not mean potassium salt industry input-output ratio to above normal levels.
The same time, China's potash production and distribution companies have been in the security and stability in the domestic potash supply efforts, the majority of China's potash fertilizer import to rely on the price has remained low in the world. Such as the international potash prices in 2008 up to five or six thousand dollars per ton when the price of domestic potash fertilizer to maintain the supply at prices of more than 4000 yuan per ton, so that more domestic potash companies in the responsibility to protect the supply of social responsibility not simply the pursuit of maximum profit.
Smooth operation of domestic potash fertilizer market has
Gang pointed out that the last two months from the functioning of China's potash industry, potash industry in China can determine the smooth running times have been entered, the price of potash has been at the rational level, the market's smooth operation of the potash producers, distribution companies and to those who are very favorable.
2008 to the second half of May 2009 before the potash industry prices all the way down (to 95% KCl, for example, prices from 3500 yuan / ton down to 2,800 yuan / ton, down almost 40%), resulting in downstream manufacturers and dealers are not getting goods, such status is not normal, is not conducive to the stable operation of the market. However, since May of this year, potash industry, the mainstream offer in 2800-3200 yuan / ton, and without further ups and downs; now in India Tender Price is 460 U.S. dollars / ton, is converted into RMB 3100-3200 yuan / ton, and domestic prices were unchanged in Chapter conclude that the potash prices have returned to a reasonable price, then price cut is unlikely, the market's smooth operation will benefit the industry healthy development.
Suspension of negotiations on my side of K
For everyone concerned about the import potash negotiations, potash industry, potash Branch would like to suspend the negotiations, potash prices continue to run until the state to a reasonable level after negotiations to seize the initiative in the negotiations.
Reason proposed to suspend the potash negotiations, considers that an amount of China's potash fertilizer resources of only 1% of the world, in production on the 2008 basis, the domestic production is 300 million tons, while for the 50 million international tons, accounting for only 6% of the world, so voice is weak, so the negotiation process, we need to look long term, not for a moment of cheap and damaged the national industry, we can not disregard strategy to high-priced imports.
If eager to negotiate, is likely to occur two conditions, one is able to talk down a small amount of potash fertilizer imports cheap, but not enough to meet domestic demand, the opposite of domestic potash fertilizer prices will lead to a bigger impact If we allow domestic potash fertilizer production enterprises therefore been hit hard, is not conducive to post-smooth operation of domestic potash fertilizer industry; other cases similar to the present and the price of Indian imports of potash contracts signed, although the import price in India is the international minimum, but does not mean running up the lowest price. Therefore, the chapter recommends suspension of the negotiations, until the stable operation of the international potash market after negotiations, so as to maintain long-term interests.
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