Zhejiang phosphate fertilizer half production capacity
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Since Zhejiang is a province with no phosphate resources, the phosphate rock it uses mainly depends on other provinces. In recent years, with the rapid development of resource-based phosphate fertilizer industry and the introduction of relevant resource protection policies, the shortage of raw materials for the production of phosphate fertilizers has been continuously exacerbated. This is an important reason for the underemployment of Zhejiang phosphate fertilizer companies. According to Xue Jiabao, director of Juhua Sulfuric Acid Plant, the limited supply of raw materials for production led to increased costs, resulting in a small profit margin for phosphate fertilizer companies. For example, the tonnage of 30% phosphate rock has risen from 300 yuan to more than 500 yuan two years ago, and it has not fallen so far, which severely squeezed the profitability of the company. Therefore, in 2006, six companies such as the Shaoxing Compound Fertilizer Plant in Jiaxing and Jiaxing Shennong Fertilizer Co., Ltd. had ceased production due to the unprofitable production of phosphate fertilizer. In the previous period, after the official collection of the Hubei Province's phosphate ore price adjustment fund, the price of phosphate ore in the province was higher, and some small enterprises in Zhejiang were severely affected. Hangzhou Hangmin Organic Compound Fertilizer Co., Ltd. has basically stopped production. Every year, it needs to purchase more than 10 million tons of phosphorous-rich Juhua Sulfuric Acid Plant from Yunnan, Guizhou and other places. At present, only two single-line production lines of compound fertilizer production line are put into production.
Another important reason that caused Zhejiang phosphate fertilizer companies to start underemployment is market chaos. Market analysis shows that calcium superphosphate in Zhejiang is a low-concentration phosphate fertilizer, which is sold almost entirely in the province and the market supply exceeds demand. The annual output of compound fertilizer in the province is more than 600,000 tons, which is basically the same as the amount of agricultural application in the province. However, more than half of the compound fertilizer produced in the province, especially high-concentration compound fertilizer, is sold outside the province and sold in the province. Phosphate fertilizer products only account for about 1/3 of the market. As a result, phosphate rock resources have been transported from other places and the products of this province have been dragged to the strange phenomenon of sales outside the province. Under such circumstances, the production of phosphate fertilizers in Zhejiang has been stagnating for a long time. The existing high-concentration compound fertilizer with a production capacity of more than 300,000 tons only has a capacity of 60% to 70%.
Zhang Shuren told reporters that there were 57 companies that had obtained the compound fertilizer production license in Zhejiang Province, and about 50 of them actually put into production. The total annual production capacity was only 1.9 million tons. These phosphate fertilizer companies have small production scales, dispersive production capacity, and low technical level and management level, which is one of the reasons for the lack of start-up of Zhejiang phosphate fertilizer companies.
According to statistics, the current production capacity of high-concentration phosphate and compound fertilizer in China and the production capacity of enterprises in the “Eleventh Five-Year Plan†have far exceeded agricultural demand. The Ministry of Land and Resources has included phosphate rock as one of the important minerals that cannot satisfy the development needs of the national economy after 2010. Zhang Shuren believes that 2007 is a period when the phosphate and compound fertilizer industry is facing a major turning point, and the adjustment of the industry is a matter of no delay. From the perspective of development trends, Zhejiang phosphate fertilizer should not expand its production capacity and produce general-purpose fertilizers. Instead, it must actively cooperate with soil testing and formula fertilization to produce high-quality special fertilizers, and encourage qualified companies to actively develop high-end fertilizers to adapt the products to the needs of the market. In addition, since superphosphate can use low-grade phosphate rock and contains a large amount of middle-level elements required for plants such as sulfur and calcium, the price per unit of nutrients is a necessary supplement for high-concentration phosphate fertilizer, and thus long-term retention of superphosphate can be achieved. Calcium products further support the benefits and strengths.
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