Phosphate companies find their way before the crisis
The price of yellow phosphorus rises first, because its cost has also increased. With the increase of phosphate ore and electricity prices, only the prices of these two raw materials are calculated. The cost per ton of yellow phosphorus is as high as 10,400 yuan. With silica, coke, and manufacturing costs, the manufacturing cost exceeds 12,000 yuan. At the same time, "the current round of yellow phosphorus prices, in addition to cost factors, there is a special background: First, in the macro-control of energy-saving emission reduction, yellow phosphorus production has a certain degree of compression; Second, the industry long-term losses, there is a rise in the internal Requirements.†Analyst Hua Xiaoxi, secretary general of the Phosphorus Chemicals Branch of the China Inorganic Salt Industry Association, analyzed. She further explained that in recent years, through limited production control, China has eliminated 400,000 to 500,000 tons of yellow phosphorus backward production capacity, accounting for about 1/4 of all production capacity, so that the relationship between supply and demand has changed. At this time, it is reasonable for yellow phosphorus companies that have been operating for more than two consecutive years and have still suffered huge losses until the end of the third quarter of last year to raise their prices.
“Because this round of price increase is a reasonable price return, it is estimated that even if the price drops slightly, it will not be too big. Downstream companies should fully understand this and take active measures to respond.†Hua Xiaoxi said.
So, can downstream phosphate companies digest this steep rise in raw material costs?
“The pressure is huge! With this phosphorus price, except for the phosphate companies with the advantages of mineral, electricity, and phosphorus integration in the west, other manufacturers should all be operating at a loss,†said General Manager Fan Tianjia of Xuzhou, Jiangsu. The company is the earliest company engaged in phosphate production in China. He explained that with the current price of 15,500 yuan of phosphorus, plus other manufacturing costs, the cost of producing one ton of phosphoric acid is 4,760 yuan, and the product price is only 4,600 yuan per ton; the cost of producing sodium tripolyphosphate is 6,780 yuan per ton Yuan, and the price is only 6,000 yuan, the formation of serious production and sales upside down.
Jiangsu Tianfu Chemical Co., Ltd., Jiangsu Chengxing Co., Ltd., and Jiangsu Debang Fine Chemicals Co., Ltd. and other companies also expressed the same view. Press production and production restriction are these companies' unreliable choices. At present, many production companies have completely stopped production. Even traditional phosphate manufacturers such as Jiangsu Xuzhou Runjia Dongfang Chemical Co., Ltd. have also dismantled the device and completely withdrew from the industry.
However, the relevant person also believes that the market economy is subject to a regular pattern, and the price increase of raw materials will eventually lead to a rise in the price of the product. Phosphate is certainly not an exception. Hua Xiaoxi said: “There will be a lagging reaction in the rise in phosphate prices, but the magnitude will depend on the relationship between supply and demand.†She believes that due to the high or low purchase prices of phosphates from phosphate companies some time ago, some have also stored a lot of low prices. Phosphorus, which determines the various companies' manufacturing costs and product sales prices are not the same. After a period of time, the purchase price of yellow phosphorus in various companies will generally converge, and the driving force for product price increases is sufficient.
She also stressed: "This is a good time for the phosphate industry to integrate resources. Phosphate companies should seize opportunities and implement large-scale regional cooperation to do a good job at the east-west part: Western companies use resource advantages with emphasis on industrial-grade production, while eastern enterprises With the help of technology and market advantages, we will focus on the processing of high value-added products such as food grade, pharmaceutical grade, and electronic grade, so as to avoid disorderly competition and promote the healthy development of the industry. According to analysis, the price of yellow phosphorus can no longer fall back to 10,000 in the short term. Around Yuan, downstream companies must face the reality and find a way out from the aspects of adjusting product structure, deepening internal potential, and strengthening cost management.
Some companies have already started to take action. Tianjia company manager Fan introduced that the company has given up all production of industrial-grade products, but the focus of operating food-grade products, although each ton of products need to add 100 to 200 yuan processing fee, but the sales price per ton can be increased by more than 500 yuan. At the same time, they focus on the international market, focusing on the EU market, and strive to seize more market share. Sun Kai, general manager of Jiangsu Malong Guohua Industry and Trade Co., Ltd. proposed that transporting yellow phosphorus with railway tankers can reduce procurement costs. With the increase in steel prices, the current tons of yellow phosphorus packaging costs have risen to 800 yuan, and rail tanker transportation can save this part of the cost. It seems that high phosphate prices have forced phosphate companies to come up with their own skills, and whoever can laugh in the end, it depends on the strength of who.
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