Recently, the reporter learned from an interview with the Information Department of the China Nitrogenous Fertilizer Industry Association that the National Development and Reform Commission attached great importance to the issue of recent coal price hikes and low realisation rates for key coal chemical contracts, and held several meetings to understand the situation and study solutions.
Wang Yanyi, deputy director of the Information Department of the China Nitrogen Fertilizer Industry Association, said that on April 14, the Economic Operation Bureau of the National Development and Reform Commission held a symposium in Beijing to study and coordinate the supply of coal in the Jingjintang Power Grid, Central China coal, and national fertilizer production. At the meeting, the China Nitrogen Fertilizer Industry Association reflected the current low cashing rate of major coal contracts for fertilizer production and the large increase in fertilizer raw coal prices. It is understood that the supply of raw coal for fertilizer companies has been tense this year, and prices have increased by a large margin. Many companies have already reached the factory price of more than 1,000 yuan per ton, and the highest is Zhejiang Longshan Co., Ltd., which has reached 1,260 yuan per ton. The cashing rate for signing contracts between chemical fertilizer companies and coal mines is very low, and the contract redemption rate for most companies is only 10% to 30%.
On April 21st, the National Bureau of Economic Development of the National Development and Reform Commission held an urgent research meeting for the production and transportation of coal. The China Nitrogen Fertilizer Industry Association reported on the current difficulties in the production of nitrogen fertilizers, mainly due to the lack of supply of coal and natural gas, and the sharp price of coal. The rise has caused the production cost of the company to exceed the national maximum price limit, the domestic market is oversupply and the export tariff is high, and a large number of enterprises have suffered losses. The China Nitrogen Association recommended that the relevant national authorities immediately increase the urea factory price limit, and the mid-premium factory price should be raised from 1,500 yuan/ton to 1,700 yuan/ton, and the floating margin should be raised to 20%. At the same time, it is recommended that government regulations be imposed on coal prices. If it is difficult to monitor the current recovery of coal prices, the state finance should subsidize the chemical fertilizer production enterprises; establish a urea export coordination and supervision mechanism to allow proper export of urea so that enterprises can maintain normal production.
The relevant person in charge of the National Development and Reform Commission emphasized at the meeting that the cashing rate of the coal supply contract for chemical fertilizers should be 100%, and that if special circumstances, the cash rate should not be less than 90%. In this regard, chemical fertilizer companies should strengthen communication with the coal mines and transportation departments. Any coal-using unit that has a railway transportation plan must submit a plan to the railway department in a timely manner and must not arbitrarily change the name of the consignee. The railway transportation department must formulate a reasonable transportation plan to ensure the coal and fertilizer utilization rate of coal.
Wang Yanyi, deputy director of the Information Department of the China Nitrogen Fertilizer Industry Association, said that on April 14, the Economic Operation Bureau of the National Development and Reform Commission held a symposium in Beijing to study and coordinate the supply of coal in the Jingjintang Power Grid, Central China coal, and national fertilizer production. At the meeting, the China Nitrogen Fertilizer Industry Association reflected the current low cashing rate of major coal contracts for fertilizer production and the large increase in fertilizer raw coal prices. It is understood that the supply of raw coal for fertilizer companies has been tense this year, and prices have increased by a large margin. Many companies have already reached the factory price of more than 1,000 yuan per ton, and the highest is Zhejiang Longshan Co., Ltd., which has reached 1,260 yuan per ton. The cashing rate for signing contracts between chemical fertilizer companies and coal mines is very low, and the contract redemption rate for most companies is only 10% to 30%.
On April 21st, the National Bureau of Economic Development of the National Development and Reform Commission held an urgent research meeting for the production and transportation of coal. The China Nitrogen Fertilizer Industry Association reported on the current difficulties in the production of nitrogen fertilizers, mainly due to the lack of supply of coal and natural gas, and the sharp price of coal. The rise has caused the production cost of the company to exceed the national maximum price limit, the domestic market is oversupply and the export tariff is high, and a large number of enterprises have suffered losses. The China Nitrogen Association recommended that the relevant national authorities immediately increase the urea factory price limit, and the mid-premium factory price should be raised from 1,500 yuan/ton to 1,700 yuan/ton, and the floating margin should be raised to 20%. At the same time, it is recommended that government regulations be imposed on coal prices. If it is difficult to monitor the current recovery of coal prices, the state finance should subsidize the chemical fertilizer production enterprises; establish a urea export coordination and supervision mechanism to allow proper export of urea so that enterprises can maintain normal production.
The relevant person in charge of the National Development and Reform Commission emphasized at the meeting that the cashing rate of the coal supply contract for chemical fertilizers should be 100%, and that if special circumstances, the cash rate should not be less than 90%. In this regard, chemical fertilizer companies should strengthen communication with the coal mines and transportation departments. Any coal-using unit that has a railway transportation plan must submit a plan to the railway department in a timely manner and must not arbitrarily change the name of the consignee. The railway transportation department must formulate a reasonable transportation plan to ensure the coal and fertilizer utilization rate of coal.
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