The phosphate compound fertilizer industry is gradually picking up, and listed companies will obviously benefit from sitting on phosphate rock.

Since 2018, with the increasingly strict environmental protection and environmental protection in the economic belt along the Yangtze River, phosphate rock and phosphate fertilizer have entered the stage of de-capacity, the supply and demand structure has improved, prices have continued to rise, and the phosphate fertilizer industry has rebounded. For the second half of the market outlook, Tianfeng Securities predicts that the pressure of future environmental protection and supply-side reform will continue. With the peak season of phosphate fertilizer demand coming from August to October, the price of phosphate fertilizer products is expected to continue to rise, which will also promote Sylt and Xinyang. The profitability of Fengfeng and other phosphate compound fertilizers continued to increase.

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Statistics from the National Bureau of Statistics show that from 2018 to April, the country’s cumulative production of phosphate ore was 32.7 million tons, compared with 46.94 million tons in the same period last year, a decrease of 14.24 million tons, down 30% year-on-year. It is understood that the production of phosphate fertilizer in the Yangtze River Economic Belt accounts for more than 80% of the country’s total output. With the promulgation of the “Eco-Environmental Protection Plan for the Yangtze River Economic Belt” and other documents, the production and production stoppage policies of major phosphate producing areas along the Yangtze River have been introduced. Under the pressure, the decline in phosphate ore production and supply tightening are the mainstream trends in the current industry.

Under the overall requirements of “Great Yangtze River Protection”, the phosphate compound fertilizer industry is faced with not only the shutdown and relocation, but also the historical opportunity of capacity replacement and optimization of structure. “Environmental and safety supervision and upgrading has brought not only pain to the industry, but also opportunities for industrial upgrading and advantageous enterprises,” said Chen Qingjun, deputy chief engineer of the Petrochemical Industry Planning Institute.

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Cinda Securities Guo Jingwei, Zhang Yansheng and Li Wei and other researchers pointed out that in the next three years, China’s phosphate rock-phosphorus fertilizer industry chain will usher in further integration. On the one hand, the phosphate industry integration, the scarcity of phosphate rock resources will be reflected, on the other hand The Yangtze River protection, one kilometer along the Yangtze River and other environmental protection policies will eliminate some small and medium-sized phosphate fertilizer enterprises that do not have the relocation strength. The concentration of phosphate fertilizer industry and the profitability of enterprises will be improved. We are optimistic about the vertical integration of phosphate resources such as Sylt and Xinyangfeng. Chemical company.

Take the example of Phosphate Compound Fertilizer Sylt, which has four production bases in Ningguo, Xuanzhou, Zhangzhou and Guizhou, with 1.5 million tons of compound fertilizer and 750,000 tons of monoammonium phosphate capacity, relying on pyrite-sulfuric acid. A complete integrated industrial chain of phosphoric acid-monoammonium phosphate-complex fertilizer, based on significant cost advantages and cost-effective products, has a stronger competitive advantage in the case of fiercer competition in the terminal. It is expected to fully benefit as the price of phosphate fertilizer continues to rise. The performance growth dividend in the industry boom.

According to the investigation and evaluation of Tianfeng Securities, the compound fertilizer gradually recovered and the phosphate fertilizer boom continued to rise. The superimposed pyrite project and pyrite-based acid production project significantly increased the performance, and the performance of Sierte is expected to continue to grow.

“With the Yangtze River protection policy and the supply of phosphate ore continue to shrink, the decline in phosphate fertilizer production is much faster than the decline in domestic demand and export volume, thus supporting the long-term trend of phosphate fertilizer prices.” Founder Securities analyst Li Yonglei said that From August to October, the peak demand for phosphate fertilizers will come, and the price of superimposed agricultural products will increase. In the second half of the year, the price and demand of phosphate fertilizer will increase overall, which will help phosphate compound fertilizer enterprises to win performance growth by virtue of cost advantage and product advantage.