In February 2009, the domestic chemical fertilizer industry realized operating revenue of 55.5 billion yuan, an increase of 2.9%; operating profit of 490 million yuan, a year-on-year decrease of 86%; the molecular industry, nitrogen fertilizer industry revenue decreased by 2.9% year-on-year, operating profit decreased by 94.4%. Phosphorus fertilizer industry suffered losses, operating income and operating profit increased by 2.1% and -145.6% year-on-year, respectively; potash fertilizer industry revenue and operating profit decreased by 41.5% and 62.8% year-on-year; compound fertilizer industry operating income and operating profit rose by 10% year-on-year. A decrease of 75.4%; the first two months, the nitrogen fertilizer industry's net interest rate is 0.33%, the normal range is between 6-8%; the compound fertilizer industry's net interest rate is 1.71%; the normal range is 3-5%; nitrogen fertilizer and compound During the fertilizer industry, the cost was stable, and the decrease in gross profit margin was the main factor causing the decline in net profit margin. The gross profit margin of the nitrogen fertilizer industry had dropped from the normal 13-15% range to about 9%; the gross profit margin of the compound fertilizer industry had gone from normal 11- The 13% range fell to 8.1%; the price of fertilizer products tended to drop, the cost remained high, and the profitability of the industry was compressed.
Decline in earnings will accelerate the "recapacitation" process in the fertilizer industry
In 2008, the domestic urea production capacity reached 61 million tons. In 2009, the capacity under construction and new construction will reach 4.5 million tons. In 2009, the domestic urea production capacity will reach 65 million tons. Although the demand for urea in agriculture is stable, the industrial demand will decline. It is estimated that the domestic urea demand will reach 53 million tons in 2009, and domestic urea will have a surplus of 10 million tons in 2009. This is even more true for diammonium phosphate, with diammonium production capacity reaching 13.5 million tons in 2009, while domestic demand is only 6 million tons, and the production capacity has a surplus of nearly 50%. Inventory is a short-term and seasonal issue in the fertilizer industry. Capacity is a long-term problem faced by the fertilizer industry. In a fully competitive city, production capacity is not digested by the market and will be eliminated by the market. Industry consolidation is inevitable. Industry, from the "de-stocking" to "re-capacity", the final industry profits will return to a reasonable space.
Shaft
Jiangyin Kaixin Heat Treatment Co., Ltd. , http://www.chforgedparts.com