Monthly Archives: May 2019

A series of new standards for fertilizer industry will be issued

Recently, a seminar on standardization of healthy development of fertilizer industry was held in Shanghai, sponsored by the National Technical Committee for Standardization of Fertilizers and Soil Conditioners and sponsored by the Journal of Chemical Fertilizer Industry. It was learned from the meeting that the Ministry of Agriculture and Rural Areas, the National Technical Committee for Standardization of Fertilizers and Soil Conditioners, and other departments are sorting out, brewing and promulgating a series of new standards, re-orienting the development direction of fertilizer industry from the top design, and building a food safety and healthy life chain from the source.

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Xu Jingying, deputy director of the Fertilizer and Water Saving Department of the Planting Department of the Ministry of Agriculture and Rural Areas, said that the Ministry of Agriculture and Rural Areas had already listed several topics, and that when conditions were ripe, it would issue a series of new standards related to the safe and healthy development of the fertilizer industry.

It is understood that the National Technical Committee for Standardization of Fertilizers and Soil Conditioners is currently working on optimizing or formulating relevant standards for the fertilizer industry, including “Limit Requirements for Toxic and Hazardous Substances in Fertilizers” and “Green Product Evaluation Fertilizer”.

Mai Yongyi, vice president of Shanghai Chemical Research Institute and chairman of the National Technical Committee for Standardization of Fertilizers and Soil Conditioners, explained that after completing the mission of solving the problem of food and clothing, chemical fertilizers now have to face food safety and people’s health problems caused by environmental pollution, soil degradation and poor quality of agricultural products. “Safeguarding people’s health from the source through the construction of standard system is a new subject for fertilizer industry to explore.” Mai Yongyi said.

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Shang Zhaocong, executive vice director of the National Chemical Fertilizer Quality Supervision and Inspection Center (Shanghai) and secretary-general of the National Technical Committee for Standardization of Fertilizers and Soil Conditioners, believes that the fertilizer industry is facing negative growth in usage and some pressure of “demonization” public opinion. It is urgent to focus on “health” and achieve healthy operation of enterprises and healthy industrial development through the restraint and guidance of the standard system. Health, industrial chain health, food chain health and life health. According to Shang Zhaocong, the function of chemical fertilizer is being given a new historical task. In the past, chemical fertilizer was used to meet the requirements of food quantity, but now it is necessary to meet the requirements of quality and make food healthier.

Wei Jing, Director of Quality Department of China Petroleum and Chemical Industry Federation, said that the current standardization construction of fertilizer industry should be carried out around two main lines, one is high-quality development, the other is green development. Green development has become a national strategy, which is also a task that the chemical fertilizer industry has to complete. In the future, green products, green factories and green parks will be developed at different levels in order to promote the establishment of green manufacturing system in the industry.

According to Chen Mingliang, deputy director and professor-level senior engineer of the Fertilizer Institute of Shanghai Institute of Chemical Research, soil conditioner has been developing actively in recent years, but there are many sources of raw materials, unstable process quality and low technology level of products. More scientific standards are urgently needed to be issued to regulate and guide it.

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Ms. Yang Yi, National Technical Committee for Standardization of Fertilizers and Soil Conditioners, introduced that the future fertilizer standard system would be optimized into four parts. Among them, the national mandatory standards are designed to ensure safety and bottom line; recommend national standards to achieve basic universal and mandatory standards supporting; industry standards to unify industry requirements; and group standards to meet market and innovation needs.

For the optimization of standards, Xu Jingying believes that fertilizer standards include four categories: general standards, product standards, testing standards and safety standards, and the urgently needed general standards and safety standards are relatively scarce.

China Petroleum Liquefied Petroleum Gas Southwest Export Passage Opened

On April 25, tank trucks loaded with 50 tons of liquefied petroleum gas arrived in Myanmar smoothly through the Sino-Myanmar border. This is the first time that Yunnan PetroChina International Enterprise Co., Ltd. (referred to as the State of Yunnan) has exported liquefied petroleum gas (LPG) produced by Yunnan Petrochemical Company to Myanmar, marking the opening of the southwest export channel of LPG for PetroChina.

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In recent years, Myanmar’s demand for liquefied petroleum gas (LPG) has been growing steadily, and its market potential is huge. Yunnan is adjacent to Myanmar, and its location advantage is obvious. In response to China’s “one belt and one road” initiative to meet the needs of Burma’s market and play a synergistic and effective capability, Yunnan’s state affairs actively explore the international market and seek new breakthroughs.

Compared with gasoline and diesel, liquefied petroleum gas (LPG) has the characteristics of flammability and explosion, and has higher requirements for the transportation and qualification of dangerous chemicals. With the cooperation of Yunnan Petrochemical Corporation, Yunnan has overcome the difficulties of shortage of dangerous chemicals transportation vehicles and lack of experience in dangerous chemicals transportation at border ports, and coordinated with relevant departments to establish temporary inspection sites to help transport vehicles smoothly through customs.

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The export of liquefied petroleum gas (LPG) is another important achievement of Yunnan State Council after successfully exporting steam, diesel and coal products to Southeast Asian markets in 2018. Up to now, Yunnan Petrochemical has exported more than 10,000 tons of refined oil monthly, and 14 export customs ports and channels, which has greatly broadened the energy procurement channels of Myanmar and Laos. Next, the State of Yunnan will gradually expand the export scale of liquefied petroleum gas and establish a stable channel for land exports in southwest China.

U.S. crude oil inventories and production have risen, restraining oil prices from rising

International oil prices, which have been rising all the way recently, slowed down in the first week of May as U.S. crude oil inventories and production both hit new highs.

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At the close of the day, the price of light crude oil futures for June delivery on the New York Mercantile Exchange rose by $0.13 to $61.94 a barrel, or 0.21 per cent. London Brent crude oil futures for July delivery rose $0.10, or 0.14%, to close at $70.85 a barrel.

U.S. crude oil production recently hit a record high of 12.3 million barrels a day. In recent months, U.S. crude oil production has remained stable, but still 2 million barrels a day more than last year.

Inventories, according to the U.S. Energy Agency report, as of April 26, U.S. crude oil inventories increased by 9.934 million barrels, pushing U.S. commercial crude oil inventories to their highest level since September 2017. Statistics also show that U.S. crude oil stocks have increased in five of the past six weeks.

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Eric Norland, senior economist at the Chicago Mercantile Exchange Group, is reported to have said that the shale oil revolution in the United States has led to a 1.3-fold increase in the country’s crude oil production over the past 10 years, exerting tremendous and sustained downward pressure on oil prices and showing itself in trading positions.

In addition, data released by Russia showed that crude oil production in April was 11.233 million barrels a day, an increase of 2.4% over the previous year and a 0.6% decrease over the previous year.

The news of abundant crude oil supply led to a sharp dive in international oil prices on the 2nd, but the US economic data improved, boosting confidence in the crude oil market and pushing international oil prices back up every other day. The U.S. unemployment rate fell to 3.6% in April, the lowest level in more than 49 years, and 263,000 new jobs were created in the non-agricultural sector that month, up from 190,000 expected by the market, according to data released by the U.S. Department of Labor on Wednesday.

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Basically, other positive factors also support oil prices. According to data released by American oil service company Baker Hughes on May 3, the number of active drilling wells in the United States decreased by 11 in April, 37 in March, 9 in February and 23 in January, compared with 2 in December last year. Baker Hughes also said in his report that the number of active natural gas drillings in the United States fell by three to 183 this week.

At the same time, some sources said that Russian oil producers had received notification from Transneft, a pipeline monopoly, to cut production by 900,000 tons by May 7, because Russian crude oil was seriously disrupted by organic chloride pollution.

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The United States is considering increasing sanctions against Iran, which Iran says is likely to disband OPEC.

After oil, the United States is considering imposing sanctions on other dollar sources in Iran and will focus on more companies and financial institutions engaged in commercial activities with Iran to cut off Iran’s access to the dollar, the Wall Street Journal reported.

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The move will crack down on export sales of Iranian petrochemical products and other commodities. Iran’s oil minister, Bijan Namdar Zanganeh, said today that Tehran would not remain silent if other OPEC members threatened Iran’s interests.

The dissolution of OPEC is possible. In April, the White House issued a public statement demanding that all Iranian oil buyers must stop importing by May 1 or face sanctions.

The White House aims to cut off the lifeline of Iran’s annual oil revenue of $50 billion to pressure Tehran to limit its nuclear and ballistic missile tests and stop its support for the Assad government in Syria and the Houthi forces in Yemen. And that has sparked resentment in Iran. Iran’s oil minister, Bijan Namdar Zanganeh, told members of Congress that the Trump Administration’s sanctions waiver plan would never be met: “It is impossible for the United States to expect to cut off Iran’s oil exports. We will do our best to break the United States sanctions.

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He pointed out that the current international crude oil market is still relatively fragile, the market can not predict, can not be sure that other oil-producing countries will produce enough crude oil to meet demand, some states boast that idle reserves are higher than the actual level. Iran’s semi-official media Tasnim (Tasnim) news agency reported that Iran’s Islamic Revolutionary Guards Naval commander Alireza Tangsiri said that if Iran can not use Hormuz, Str. Of, then it will be shut down.

The US attempt to keep Iran’s oil exports down to 0 will fail. The International Monetary Fund has previously warned that Iran’s recession is expected to deepen as a result of US economic sanctions, which is expected to shrink by 6% per cent this year, shrinking for the second year in a row, with inflation likely to soar to more than 40%, the highest level since 1980, the third largest in the world,

Only better than Venezuela and Zimbabwe. In addition, the EIA Weekly, released in Wednesday, showed a high innovation in U.S. crude oil production in the week of April 26, adding 100,000 barrels to 12.3 million barrels per day. The week’s EIA crude oil stock increased by 9.934 million barrels, the highest increase in the week of November 16 last year (24 weeks), pushing the United States last week crude oil stocks rose to the highest since September 2017.

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Ammonium chloride is on the tight spot, but its price is now loose

It was May and during the May Day holiday, the fertilizer market was not relaxed at all, but it was at the end of spring and the fertilizer market was relatively light. Let’s talk about the adjustment of ammonium chloride Market for small nitrogen fertilizer in May. At present, the domestic ammonium chloride multi-market factories have sufficient orders to be issued and some of them are in short supply. Therefore, if you want to get the goods, you still need to “wait” and the overall market price is running at a high level. For example, according to the statistics of China Chemical Fertilizer Network, the mainstream domestic dry ammonium factory quotation is about 650-800 yuan/ton, and some of the transactions can be negotiated, of course, the price outside the province is lower than this. However, there are exceptions to the above situation. The representative is the northeast, where demand is over, ammonium chloride is abundant, cargo is under pressure, and prices are falling. The price of mackerel circle before the festival has dropped to 780 yuan/ton, and the turnover is still slow, which is obviously different from the southern market.

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In May, the local ammonium chloride market is slightly delicate. Although the spot market is still relatively tight, the price is now loose. Next, the price trend of ammonium chloride has become the focus of attention in the industry. The following points will be explained.

Firstly, it is difficult to reduce the high-level operation of joint alkali enterprises in the short term. The new capacity load of a large ammonium chloride plant in Henan has increased smoothly. Most of the large ammonium chloride plants in Jiangsu and Southwest China have been overloaded for a long time. Only half of the units in a large ammonium chloride plant in Hubei have been overhauled but will be restored soon. According to the statistics of China Chemical Fertilizer Network, the overall industry start-up rate of the joint alkali enterprises has risen to 82%. However, there are fewer ammonium chloride enterprises planned to be overhauled, only one plant in Jiangsu It is scheduled to be repaired for three days from May 10. In addition, two factories in Jiangsu and Chongqing are scheduled to stop inspection for about half a month at the end of the next ten days. However, even if parking is still available for export, it is obvious that ammonium chloride enterprises will maintain a high level at least in the first ten days of operation. And the soda market is considerable, some enterprises will still focus on production of soda, at the same time, the production of ammonium chloride will rise.

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Secondly, the price of urea fluctuates slightly. From the point of view of supply and demand, the bearish trend of urea accounts for the majority. The transportation of liquid ammonia, which is closely related to urea production, is limited during May 1st. Under the double pressure of environmental protection and safety inspection, while liquid ammonia keeps low inventory, some enterprises will focus on urea production and increase urea shipments more or less. In the off-season of agricultural demand, most wholesale commodities in the market are priced or even partly stopped wholesale. Hefei enterprises have high sales pressure, low production enthusiasm, plywood plant and other needs are still supported, but after all, limited, so in the situation of high urea start-up and weak demand, the market is unlikely to improve, which will affect the purchasing volume of ammonium chloride for enterprises such as compound fertilizer.

Thirdly, the new demand for ammonium chloride has slowed down and the turnover has cooled down. First, during the gap period of spring and summer, ammonium chloride enterprises have sufficient orders to be issued, while more than 200,000 tons are less than 10,000 tons. That is to say, the raw material reserves of compound fertilizer plants and extruded granular ammonium chloride plants are sufficient, and the demand for filling orders will be very limited in the later period. Second, when the market demand in Northeast China is over, some ammonium chloride supplies in the southern market have to change their sales direction, while prices in Northeast China are declining. To a certain extent, it affects the trend of other regions; thirdly, the export volume is far from easing the pressure of domestic ammonium chloride shipment. According to customs data, the total export volume of ammonium chloride for fertilizer and non-fertilizer in March was 71.3 million tons, and the total export volume of ammonium chloride for non-fertilizer was 74.6 million tons, which increased compared with February. However, in the same period of previous years, the export volume in April should not change greatly or decrease. The domestic market is likely to increase in the amount of digestion awaited.

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Finally, in a comprehensive view, the short-term sufficient standby still makes the spot market tight, and the firm’s confidence in the bid price is relatively sufficient. Therefore, it is expected that the ammonium chloride market will continue to run at a high level in May. If there are small orders in some parts, the price will probably increase slightly for the settlement of the factory. However, from the perspective of the high start-up and the light of new orders and the limited replenishment orders, it is expected that May will be the month. While the price of ammonium chloride is firm, local transactions should be loosened.

China’s national energy consumption increased by 3.5% in the first quarter, and the proportion of coal fell by 1.8 percentage points.

According to the data released recently by the National Bureau of Statistics, China’s energy consumption per unit of GDP fell by 2.7% in the first quarter compared with the same period last year, of which the energy consumption per unit of added value of industrial units above the scale dropped by 3.4%.

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Liu Wenhua, Director of the Energy Statistics Department of the National Bureau of Statistics, said that in the first quarter of this year, China’s energy supply and demand continued to grow steadily as a whole and its structure was constantly optimized.

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According to the preliminary calculation of the National Bureau of Statistics, the total energy consumption in the first quarter increased by 3.5% year on year. Among them, the proportion of clean energy consumption, such as natural gas, hydropower, nuclear power and wind power, in total energy consumption increased by 1.5 percentage points over the same period last year, while the proportion of coal consumption decreased by 1.8 percentage points.

Stuck Iran’s Oil Exports, and the United States Opens a “Comprehensive Blockade” Model

The escalation of U.S. sanctions will undoubtedly further deteriorate Iran’s economy and external environment, but it will not force Iran to yield and increase the risk of escalation of confrontation between the two sides.

On April 22, the U.S. government announced that it would no longer grant sanctions exemption for Iranian oil imports to any country or region, which aroused great concern of the international community and the rise in international oil prices.

In fact, this is also a big move by the United States to expand the pressure on Iran’s economy and force Iran to return to the negotiating table

In response, on April 23, Geng Shuang, spokesman for the Chinese Foreign Ministry, said that China firmly opposes the implementation of unilateral sanctions and so-called “long arm jurisdiction” by the United States. China urges the United States to earnestly respect China’s interests and concerns, refrain from wrongdoing that harms China’s interests, and will continue to work to safeguard the legitimate and legitimate rights and interests of its enterprises.

U.S. -Iran Confrontation Upgrade

In May 2018, after the announcement of withdrawal from the Iranian nuclear agreement and the resumption of sanctions against Iran, the United States strongly demanded that all countries stop importing Iranian crude oil. However, when the sanctions came into effect in early November, eight countries and regions were granted 180 days of exemption. Now, the United States decides to completely end the exemption of sanctions against Iran, which will have a new impact on Iran itself, the international oil market and Iran’s crude oil importers.

First, the US containment policy towards Iran has entered a new stage of “blockade”. This time, the formal abolition of exemption by the United States is the continuation and escalation of its comprehensive policy of containing Iran, cutting off Iran’s largest source of income by “liquidating” its oil exports, and forcing Iran to make a choice between changing its policy behavior and economic collapse.

Not long ago, the United States listed Iran’s Islamic Revolutionary Guard as a “terrorist organization”, which shows that the Trump Administration has upgraded its “blockade” of Iran and vowed to carry out its containment policy to the end.

The escalation of U.S. sanctions will undoubtedly further deteriorate Iran’s economy and external environment, but it will not force Iran to yield and increase the risk of escalation of confrontation between the two sides.

Iran’s policy options are limited. At present, the average daily export volume of Iranian crude oil has dropped to about 1 million barrels, which is bound to decline further in the future. Iran strongly condemns the “illegal sanctions” imposed by the United States. On the one hand, it said that it would consult with its partners before deciding how to deal with them. On the other hand, it pledged not to compromise, possibly speeding up the resumption of its nuclear development plan. Iran’s Islamic Revolutionary Guard has once again threatened to close the strategic Strait of Hormuz. Iran’s parliament passed an overwhelming majority on April 23 to list all U.S. troops as “terrorist organizations”.

The escalation of the confrontation between the United States and Iraq may usher in a new round of geopolitical tensions.

Crude Oil Market Meets Major Challenges

Secondly, the U.S. move poses a major challenge to the international crude oil market. As soon as the United States announced the termination of Iran’s oil sanctions exemption, international oil prices rose sharply to a six-month high. Brent crude oil futures rose 3.27% to $74.14 a barrel; West Texas Intermediate Oil (WTI) futures rose 2.67% to $65.71 a barrel; and Shanghai crude oil futures rose 2.85%.

On the one hand, there are new variables in the international crude oil supply. Although the United States has indicated that it will make up for the supply gap with Saudi Arabia, the United Arab Emirates and other oil-producing countries to ensure the supply of global crude oil market, considering the uncertainty of domestic situation and oil production in Venezuela, Libya, Nigeria and other oil-producing countries, the risk of Iran’s crude oil export disruption will bring new pressure to the global oil supply. Stimulated already tense market nerve.

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On the other hand, OPEC’s production reduction agreement is facing new uncertainties. In order to avoid the shortage of oil supply and the rapid rise of oil prices, Saudi Arabia, the United Arab Emirates and other countries may no longer insist on extending the reduction agreement, but withdraw from the reduction action under the cooperation requirements of the United States.

Multinational opposition to the abolition of immunity by the United States

Finally, Iran’s crude oil importers are facing new policy options, and relations with the United States may become tense.

In the list of exemptions announced by the United States, Greece, Italy and Taiwan China have reduced their crude oil imports from Iran to zero, while mainland China, South Korea, India, Japan and Turkey have maintained considerable Iranian crude oil imports.

At present, only about 10 days before the end of the exemption period, it is unlikely that these countries will be required to “clean up” completely, even if it is difficult to ship oil originally scheduled for May out of Iran.

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But if these countries continue to import, they will face retaliation from the United States, and higher oil prices may also put some countries under greater currency depreciation and inflationary pressure. Japan and South Korea, which have been expecting a delay, have expressed concern about the lifting of the exemption from the United States; Turkey has made clear its opposition to unilateral sanctions and will continue to buy Iranian crude oil; India, which relies on Iranian oil, is also eager to find a solution.

Therefore, the policy and response of Iran’s oil importing countries largely determine the effect of sanctions imposed by the United States and Iran’s living environment, while those countries that are difficult to get rid of Iran’s oil importing countries are facing a new round of tension with the United States.

 

In the short run, it is difficult for the United States to quickly “zero” Iran’s crude oil exports, and Iran will not wait to die, taking counter-measures while seeking new ways to circumvent sanctions. At the same time, uncertainties from the international crude oil market and oil importing countries still exist, and the future development prospects of the event are affected by multi-game.

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Qatar criticizes the United States for blocking Iranian crude oil

Qatar’s foreign minister, Mohammad bin Abdullahman al-Thani, spoke out on May 1, criticizing the U.S. attempt to “clean up” Iranian crude oil exports, in public opposition to this ally.

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Qatar’s Foreign Minister, as the host of the Asian Cooperation Dialogue held in Doha, said that the unilateral sanctions imposed by the United States on Iran were “unwise” because they would adversely affect importers benefiting from Iranian crude oil.

He said: “The crisis must be resolved through dialogue and only through dialogue. We believe that unilateral sanctions will not have a positive effect.”

The United States withdrew from the comprehensive agreement on Iran’s nuclear issue last May and resumed sanctions against Iran in two batches in August and November of the same year in an attempt to block Iranian crude oil exports, but in November it granted eight Iranian crude oil importers a six-month exemption from sanctions. The exemption expired on May 1 this year, and the United States decided not to renew it.

The risk of “zero” Iranian crude oil exports has triggered concerns in the international crude oil market, boosting oil prices. The United States says it is coordinating with Saudi Arabia and the United Arab Emirates, the major oil producers, to ensure adequate supply of crude oil.

As a Gulf country, Qatar produces only a small amount of crude oil, about 600,000 barrels a day, but its natural gas production is high, making it the world’s largest exporter of liquefied natural gas; its natural gas reserves account for 13% of the world’s total reserves, second only to Russia and Iran.

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Qatar officially withdrew from OPEC, the Saudi-led Organization of Petroleum Exporting Countries, on January 1 this year. Qatar claims that the reason for “withdrawal” is “irrelevant to politics”, but “it wants to concentrate on natural gas exploitation”.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic relations with Qatar in June 2017 and imposed sanctions and blockades on it. The four countries designated Qatar as “supporting terrorism”, “undermining regional security” and turning to Iran. Qatar denies these allegations. The crisis of severance of diplomatic relations has continued to this day, and the good offices of the United States and Kuwait have failed many times.

Officials from Saudi Arabia and Bahrain attended the Asian Cooperation Dialogue on the 1st. According to Reuters, this is the first time that the two countries have sent officials to a meeting in Qatar since the break-up of diplomatic relations.

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Qatar’s foreign minister told Reuters that Saudi and Bahraini officials’participation in the meeting was “limited” and that Qatar’s relations with the two countries showed no signs of thawing.

Qatar is one of the most important allies of the United States in the Gulf. The Udaid Air Force Base in the southwestern part of Qatar is the largest air base in the Middle East. Qatar is closer to Iran, having previously announced the full resumption of diplomatic relations between the two countries. Qatar has repeatedly expressed its willingness to help the United States mediate with Iran.

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