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Natural gas price reform enormous impact on the fertilizer industry
Source:China Fertilizer Net   Author:Valley Villa   Time:2010-06-02   Read:1573second  

The NDRC issued a circular on May 31, base price of domestic onshore natural gas shipped from the 925 yuan per thousand cubic meters up to 1,155 yuan, 230 yuan per thousand cubic meters increase, price increase of 24.9%. Meanwhile, natural gas prices improved management practices, that the abolition of dual-track system, expanding the scope of the price range, setting cars and trucks with gas than the price of oil.
Investment Advisor in the chemical industry researcher Yi Zhi Chang pointed out that currently, China's scarce resources, energy conservation and arduous tasks, the implementation of resource price reform is imminent. For the chemical industry, the natural gas price reform will have on gas will significantly affect the head company, especially for natural gas use more fertilizer industry.
According to the Investment Adviser published "2010-2015 China Fertilizer Market Report Investment Analysis and Prediction," shows that each consume about 600 cubic meters of natural gas, can be made into 1 ton of urea. If gas prices rise 0.2-0.4 yuan per cubic, 1 ton of urea fertilizer production enterprises will increase the cost of 120 -240 dollars. If gas prices rise 0.2 yuan / cubic meters of natural gas chemical industry-wide loss of face.
The current natural gas prices rose from 0.23 yuan / cubic meter, often Yi Zhi think the current price of fertilizer in the bottom of the circumstances, natural gas, fertilizer production enterprises will be further reduced profit margins or even losses.
Investment Advisor in the chemical industry researcher Nan Li also added that gross margins gas from urea and urea compared to coal head, often higher than 1 / 5 or more, one of the most important reason is the use of natural gas costs are lower. Therefore, the large natural gas prices rose, relative coal head of urea, the competitiveness of gas from urea will be greatly reduced.
Therefore, many natural gas as raw materials of the chemical industry in order to avoid the cost of natural gas prices brought pressure to be launched already have invested heavily in gas with coal project. For example, Chitianhua, the sky of the first chemical companies and other traditional gas now largely completed the gas with coal. (Valley Green)
 

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