Due to the fact that the fertilizer companies that purchase sulfuric acid production have no way to export, the five large-scale non-ferrous metal enterprises in China recently wrote a letter to the Ministry of Commerce requesting that the export tariffs on phosphate fertilizers and other fertilizers be reduced to solve the problem that sulfuric acid supply exceeds the demand for non-ferrous metal products and is close to the explosion. Take over the dilemma.
It is understood that the enterprises that signed the Ministry of Commerce include Zhuzhou Smelter Group Co., Ltd., Zhongjin Lingnan Nonferrous Metals Co., Ltd., Shuikoushan Mining Bureau, Henan Yuguang Gold & Lead Co., Ltd., and Anyang Yubei Gold & Lead Nonferrous Metals Co., Ltd. Lead-zinc products are the main products, while the main by-products of lead ingots and zinc ingots are industrial sulfuric acid. Affected by the financial crisis, the sales of industrial sulfuric acid products have been extremely difficult since last year.
“Now the non-ferrous metals enterprises have large stocks of industrial sulfuric acid, storage tanks will be full, they can not be discharged, there is no storage, the smelting industry will therefore face the risk of stop production, many companies can not sell zero-cost sales.†People say.
According to industry insiders, 70% of domestic industrial sulfuric acid is used in the production of phosphorus compound fertilizer, and the operating status of the phosphate and compound fertilizer industry determines the price of sulfuric acid. According to the data from the Phosphate Fertilizer Industry Association, the current domestic production capacity of DAP is 15 million tons, domestic demand is less than 5.5 million tons; domestic production capacity of monoammonium phosphate is 16 million tons, and domestic demand is less than 6.5 million tons. Domestic phosphorus and compound fertilizer companies have relatively large stocks. Domestic phosphate and compound fertilizer companies must rely on exports to ensure the healthy development of the industry.
However, as of April 1, 2008, the state has imposed special export tariffs on the fertilizer industry (the export tariff is 35%, and the special tariff is 100%); on December 1, 2008, the state made a low season for the fertilizer industry (2009, 1). In June, July, November, and December, the export tariff was 35%, and the special tariff was 10%. During the peak season (February 2, 3, 4, 5, 8, 9, and October 2009), the export tariff was 35%. The special tariff is 75%. This resulted in the complete failure of domestic fertilizer exports, and the domestic chemical fertilizer market was in serious supply exceeding demand.
The person in charge of the lead and zinc department of the China Nonferrous Metals Industry Association stated that due to the fact that the fertilizer industry cannot export and cause serious losses, the price of sulfuric acid has plummeted from the previous RMB 2,000/ton to the current RMB 100/ton, and corporate profits have plummeted. At the same time, if the slow-moving sulfuric acid products will directly affect the normal production of lead, zinc and other non-ferrous enterprises.
China Sulfuric Acid Industry Association Qi Tong told reporters that the current domestic production of sulfuric acid is a serious surplus, it is expected that the domestic market price of sulfuric acid is difficult to rise, sulfuric acid production this year is about 56 million tons. “Now is the disorderly market competition, competition for raw materials, and competition for the market, which seriously affect the development of the industry.â€
The people in South China and South Korea told the reporter that whether or not chemical fertilizers can be exported is not directly related to metal smelting, but they are closely related. If the country can cut tariffs in a timely manner in the off-season, it also indirectly supports the survival of non-ferrous companies such as lead and zinc, ensuring non-ferrous metals. The company successfully crossed the difficulties. It is suggested that the country implement the actual domestic consumption, and in the case that the fertilizer industry guarantees the supply of domestic farmers, the surplus (or use of quotas to control the export volume) will cancel the tariff export.
Zhang Yongzhi, vice chairman of the China Phosphate Fertilizer Industry Association, also suggested that, starting from May of this year, the difference in the export of phosphate fertilizers should be eliminated and zero tariffs should be implemented. The government should provide appropriate financial subsidies for high-cost ammonium phosphate to promote the structural adjustment of the phosphate fertilizer industry.
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