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Nitrogen Association after freak: India faces stock purchase urea
After China Nitrogen Fertilizer Association on June 19 issued "on the strengthening of self-discipline to resist malicious export dumping" emergency Proposal, foreign media on the Indian state trading company STC purchase can be completed 1.5 million tons of urea expressed concern because Chinese companies have begun to boycott Aires company's proposed $ 266 CIF, and now just completed a 150,000 tons STC tender, for the remainder of the subject can be completed through a small retail still a question mark. Therefore, the industry believes that the next round of bidding price in India will be more reasonable and lower prices in the short term will not be malicious. Thus, the establishment of export joint negotiation mechanism is imperative that only joint negotiations in order to protect domestic enterprises, to avoid damage to the interests of lower prices among enterprises, allow Chinese urea export prices more reasonable.
Domestic enterprises to actively respond to nitrogen Association Initiative
"Association released this very timely initiative, companies will strongly support and we will work together to resist foreign malicious short, focused more on the domestic market to meet the demand for fertilizer is approaching the peak." This is the June 19, China Nitrogen Fertilizer post-Industrial Society (hereinafter referred to as nitrogen Association) issued "on the strengthening of self-discipline to resist malicious export dumping" emergency Proposal, Shanxi coal, coal Yang, Yihua, CNOOC, Inner Mongolia Yuan Xing Energy, Shandong Union chemical nitrogen fertilizer production and other mainstream people in charge sound.
Gu Hongbin Director of Shanxi Jincheng Anthracite Mining Group Co., Ltd., said the initiative to issue nitrogen Association, the group responsible for the organization's business who were learning, and also presented the group's initiative, the group down firmly resist foreign malicious behavior. Hubei Yihua Group deputy general manager Zhang Xin Ya think that this initiative is very timely given nitrogen Association, Hubei Yihua at this juncture must take the lead in safeguarding the legitimate interests of the industry, not the loss of state assets, dumping opposition boycott international traders malicious speculation. Minister Jin Henan Investment Group to open sales offices urea Department Xu Bo, general manager of Inner Mongolia Yuan Xing Energy Company Limited distribution company Su Zhigang, general manager of CNOOC Chemical Sales Co., Ltd. Shen Wende, also said that companies will not lower prices to malicious foreign supply.
"After the exit window of the open season, the state support of the urea export tax relief if the foreign malicious lower prices prevail, the equivalent of subsidies granted by the State to allow the outflow of the country, is the damage to the national interest." Said Zhang Xin Ya. Union deputy general manager of Shandong Chemical Group Sunde Liang said, according to The Indian tender prices, most companies are losses, which have to say foreign malicious behavior.
"Every year window period season approaching, importers and traders are taking advantage of the opportunity to suppress China's urea, this low pressure because they are well versed in our export tariff policy, and we understand China more urea set in Hong Kong. Another reason is that the domestic urea business conflicts, the cards do not have routine, so the foreign beneficiary. this initiative is in fact called for the country to unite the nitrogen fertilizer business. "Shen Wende said.
Deputy General Manager of Shanxi Yangquan Coal Fengxi Fertilizer Industry (Group) Co., Ltd. Dong lake also believes that foreign malicious short cards Chinese urea is that Chinese urea manufacturers conflicts, Chinese companies together is very important.
The responsible people also said that due to the market downturn in the first half, the circulation of urea is not much, from now until July 20 is the time to focus fertilizer, urea use season is approaching, backward exit capacity, a significant increase in export volume and other factors the current domestic urea tight state resources in balance, recent domestic enterprises to actively carry urea urea supply the domestic market is the right way.
Malicious urea prices down no way!
In recent years, foreign malicious short Chinese urea frequent phenomenon. In mid-June as the Indian urea tender, the lowest CIF price is only $ 266 / t fob China less than the equivalent of 250 U.S. dollars / ton, while the FOB price of urea in this time of international $ 290 / tons. India is a major supplier of urea, urea tender price is lower than in India a large portion of the international market, which is obviously a malicious short Chinese urea, harm the interests of Chinese enterprises. Such phenomenon is worth pondering the relevant departments and enterprises.
According to the analysis, was able to frequent short Chinese Foreign urea, for two main reasons:
First, export enterprises have urgent psychological season. This difference is mainly seasonal export of urea caused. China's implementation of urea, MAP, DAP three main export varieties of seasonal export policy, the season lasted eight months, the off-season for only four months. Due to the low season export tariffs, companies want to export more in the off-season, so a few months before the arrival of the season, set in Hong Kong have started urea, urea gives Chinese exports impatient, very, very much the impression of urea become foreign bargain chips.
Second, domestic enterprises are not united. Domestic urea export enterprises have not huddled, but fighting each other and killing each other, which is one of the biggest lessons of these years Chinese urea exports. To foreign goods, and he took the same order to go around the domestic urea inquiry, to see who's the lowest price, and then on the basis of the lowest corporate discounts would have to ask whether to accept, and so forth, the more talk the more price low.
So how can we reverse the passive situation of urea export, do not be led foreign investors?
First, we must hold together. Initially this DAP export situation is relatively grim, early April by the end of March, the international price of diammonium began a slight decline (decline of about $ 50 / t), plus the price way down on last year's export experience in the industry have on exports this year bearish market. But this year the domestic DAP manufacturers huddled and changed the export lower prices, competing export operation mistakes to avoid repeating the mistakes of last year's price. DAP manufacturers of this approach is worth pushing into urea enterprise learning.
The second is to control production. If the international urea prices are too low, the export does not pay, then we would rather not export, there must be such a man of character and determination to defend corporate interests. Urea is not likely to face short-term export excess production, the product is no place to question. At this time the enterprise must take early repair or load reduction approach to reduce output.
According to foreign reports, the world's largest potash producer Potash Company, one of Russia's Ural June 18, said the company has lowered this year's production target of about 8 percent, from 1,200 tons to 11 million tons, in order to support prices. International giants can take the initiative to cut production of potash, urea manufacturers why we can not do?
The third is sold to high-priced markets. Internationally there are many countries and regions need to urea, not just stare at it a market in India, then here cannibalism. Since buyers are aware of India took the same order to the domestic manufacturers everywhere to inquire why our urea manufacturers are not able to exercise a single international markets everywhere, which is good to go out into the market price where to sell it?
In addition, calls for national adjustment and improvement of fertilizer export policy. China's current export policy is off-season tariffs to 15% lower than the peak tariff, equivalent to reduce the cost per ton of urea exports around $ 200, so many companies are going to squeeze this time window, but also makes playing the lower prices of foreign mind. If China's fertilizer export policy to further improve the timely cancellation of export tariffs seasonal differences, unified annual export tariffs, will be able to promote the domestic and international markets freedom docking.