Anhui: nitric acid market snow before sunny day
Anhui is the largest nitric acid production base in China with an annual production capacity of more than 700,000 tons, accounting for 35% of the country's total production capacity. After heavy snowfall in the mid-November period, despite the relatively short-lived impact of Anhui Province, due to the serious snow conditions in the surrounding Henan Province, Hebei Province, and Shandong Province, the difficulty in shipping products has made the nitric acid market in Anhui Province affected. . Especially in the aspect of highway and automobile transportation, due to the thick snow on the highways in Henan and Hebei, car tankers could not be on the road, and heavy vehicles after loading were more difficult to drive, and tyres were not allowed to use snow chains. On the one hand, there is a backlog of products in the production enterprises, and on the other hand, users wait for goods in the rush of rice, causing regional resource imbalances and rising prices.
During the interview, CCIN reporter also learned that due to the recent rising international crude oil prices, the scarcity of domestic natural gas resources, the restriction of gas for production, the maintenance of residents’ use of heating gas, the replacement of new and old production facilities of some companies, power outages, steam cuts, and equipment anomalies. For other reasons, 30% to 40% of medium-sized nitric acid companies in China are forced to suspend production. Many ammonia producers cannot protect themselves from liquid ammonia, and are in urgent need of outsourcing. Its downstream urea, ammonium bicarbonate and other fertilizers are also forced to adjust the product structure due to insufficient supply of ammonia or insufficient gas supply to compress the output of chemical fertilizers, leading to a substantial increase in the prices of liquid ammonia and nitric acid in mid-November. Liquid ammonia prices rose from 2,150 to 2,200 yuan (t price, the same below) a week ago to the current 2450 to 2500 yuan, and rose by 300 yuan in one week. Nitric acid prices also rose in various degrees, rising by 50 to one week. Between 100 yuan; urea, fertilizer and other fertilizer products prices have also risen.
As the Ministry of Railways' annual transportation focus in winter is to ensure the transportation of civilian heating coal and electric coal, the transportation plan for other goods must be cut to varying degrees. During the period of serious snow conditions in some areas in mid-November this year, some road bureaus uphold the consistent transportation principles of the “Ministry of People's Livelihood, Urgently Responsible for Disaster Relief Materials†of the Ministry of Railways, and massively compress the transport plan for production materials, placing limited transport capacity on the “guaranteed passenger transportâ€. "Conservation of coal," the focus of transportation. At this time, it is also the moment that the northern chemical products highway transportation is the most difficult and most able to reflect the advantages of the enterprise's railway freight. Under the conditions of securing civilian supplies and passenger transport, the railway system will increase the amount of shipments of products to northern railway freight and balance the country's resource allocation. At the same time, it will also seek high regional price differentials for enterprises. Some companies that have railroad shipping conditions and owned tankers have even coordinated their work within the railway system. Some wagons sent to the south have been adjusted to the flow of shipments in time, rerouted to the north where the road transportation is more difficult, and will be sent to the south. The train wagons plan to cancel and switch to car shipments.
Many chemical companies in Anhui Province adopted an active market adjustment strategy in response to the aforementioned issues, concentrated transportation resources and advantages, implemented sub-regional sales, balanced market resource ratios, and balanced regional supply ratios. For example, enterprises with self-provided tanker conditions will mobilize the strength of wagons to concentrate their products on the northern market, ease the difficulties caused by road snow conditions and hinder the logistics; for the relatively good conditions of southern road transport, the company will send the original to the north. The vehicle transportation vehicles are concentrated in the south and combined with waterway shipping tools to implement different methods of logistics transportation in different regions and in different geographical and climatic conditions so as to give full play to the transportation advantages of the enterprise and deliver all kinds of products to the country in time. All around.
Last week, many state-owned and state-owned enterprises in Anhui, Hubei, and Henan restructured their enterprises to use the above measures to deal with the difficult problems brought about by the snow weather, which not only greatly eased the logistical difficulties and resource shortages in areas with severe snow conditions. In the process of implementing positive measures, it has also won considerable market benefits for the company and earned a large price difference in the product area.
A heavy snowfall in Anhui Province brought some resistance to chemical production and circulation. However, due to adequate preparedness and rapid snowfall, the snow quickly disappeared and the chemical production in Anhui Province was not too serious. influences. However, in other provinces in China, the snowfall rate is relatively large and the thickness of snow is too deep. The chemical market is affected more or less.
During the interview, CCIN reporter also learned that due to the recent rising international crude oil prices, the scarcity of domestic natural gas resources, the restriction of gas for production, the maintenance of residents’ use of heating gas, the replacement of new and old production facilities of some companies, power outages, steam cuts, and equipment anomalies. For other reasons, 30% to 40% of medium-sized nitric acid companies in China are forced to suspend production. Many ammonia producers cannot protect themselves from liquid ammonia, and are in urgent need of outsourcing. Its downstream urea, ammonium bicarbonate and other fertilizers are also forced to adjust the product structure due to insufficient supply of ammonia or insufficient gas supply to compress the output of chemical fertilizers, leading to a substantial increase in the prices of liquid ammonia and nitric acid in mid-November. Liquid ammonia prices rose from 2,150 to 2,200 yuan (t price, the same below) a week ago to the current 2450 to 2500 yuan, and rose by 300 yuan in one week. Nitric acid prices also rose in various degrees, rising by 50 to one week. Between 100 yuan; urea, fertilizer and other fertilizer products prices have also risen.
As the Ministry of Railways' annual transportation focus in winter is to ensure the transportation of civilian heating coal and electric coal, the transportation plan for other goods must be cut to varying degrees. During the period of serious snow conditions in some areas in mid-November this year, some road bureaus uphold the consistent transportation principles of the “Ministry of People's Livelihood, Urgently Responsible for Disaster Relief Materials†of the Ministry of Railways, and massively compress the transport plan for production materials, placing limited transport capacity on the “guaranteed passenger transportâ€. "Conservation of coal," the focus of transportation. At this time, it is also the moment that the northern chemical products highway transportation is the most difficult and most able to reflect the advantages of the enterprise's railway freight. Under the conditions of securing civilian supplies and passenger transport, the railway system will increase the amount of shipments of products to northern railway freight and balance the country's resource allocation. At the same time, it will also seek high regional price differentials for enterprises. Some companies that have railroad shipping conditions and owned tankers have even coordinated their work within the railway system. Some wagons sent to the south have been adjusted to the flow of shipments in time, rerouted to the north where the road transportation is more difficult, and will be sent to the south. The train wagons plan to cancel and switch to car shipments.
Many chemical companies in Anhui Province adopted an active market adjustment strategy in response to the aforementioned issues, concentrated transportation resources and advantages, implemented sub-regional sales, balanced market resource ratios, and balanced regional supply ratios. For example, enterprises with self-provided tanker conditions will mobilize the strength of wagons to concentrate their products on the northern market, ease the difficulties caused by road snow conditions and hinder the logistics; for the relatively good conditions of southern road transport, the company will send the original to the north. The vehicle transportation vehicles are concentrated in the south and combined with waterway shipping tools to implement different methods of logistics transportation in different regions and in different geographical and climatic conditions so as to give full play to the transportation advantages of the enterprise and deliver all kinds of products to the country in time. All around.
Last week, many state-owned and state-owned enterprises in Anhui, Hubei, and Henan restructured their enterprises to use the above measures to deal with the difficult problems brought about by the snow weather, which not only greatly eased the logistical difficulties and resource shortages in areas with severe snow conditions. In the process of implementing positive measures, it has also won considerable market benefits for the company and earned a large price difference in the product area.
A heavy snowfall in Anhui Province brought some resistance to chemical production and circulation. However, due to adequate preparedness and rapid snowfall, the snow quickly disappeared and the chemical production in Anhui Province was not too serious. influences. However, in other provinces in China, the snowfall rate is relatively large and the thickness of snow is too deep. The chemical market is affected more or less.