Phosphate compound fertilizer companies should actively strive for national policy support

Wang Jinming, Deputy General Manager of Sino-Arab Fertilizer Co., Ltd. China-Arab company produced 440,000 tons of compound fertilizer in 2008, completing 73.41% of the planned plan, and the annual driving rate was only 40%. All raw materials of China-Arab companies need to be outsourced, and raw material costs account for 90% of production costs. Although the company's procurement of raw material prices rose by 110% in 2008, affected by market sales, government price limits and export policies, product prices rose only 80%, but the company's production and sales rate is still falling sharply.
After October 2008, due to the impact of the international financial crisis, the price of raw materials drastically dipped and the company suffered large losses. In 2008, the China-Arab company adjusted its sales policy and changed its sales from sales to current sales. The sales volume of the company was 360,000 tons. Among them, domestic sales of 320,000 tons, exports of 36,000 tons.
In 2009, the main problems of the company were: the price of major raw materials dropped, but the price of potash fertilizer remained high, and the pressure for production costs of compound fertilizers was intensifying; the inventory of high-priced raw materials and high-cost products of enterprises in the early stage still required a certain period of time to digest, and the current market demand shrank. Difficulties in operating, the company started to maintain a relatively low level; the weak international market demand, coupled with the country's implementation of the tariff policy restrictions, corporate products difficult to export, the company's living environment is difficult to improve; in some areas, the implementation of preferential policies for fertilizer production is not in place.
Although some phosphorus and compound fertilizer companies will profit in 2009, the entire industry will continue to operate at the bottom. Affected by the financial crisis and high-priced inventory, the losses of the phosphate-based compound fertilizer industry may also increase. Therefore, it is hoped that industry associations will integrate the reasonable demands of various companies and actively strive for national policy support.

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