Following the peak building industry, Chuanhuagufen, Sichuan Meifeng posted first half profits to fall after results notice, today, Lutianhua joined in the first half profit to fall fertilizer companies in the world. Industry downturn in the context of urea, urea using natural gas as raw material price increases in raw materials companies, under pressure to become the weakest link in the industry, natural gas, urea woeful.
        Lutianhua notice today, in the first half net profit loss of about 36 million to 42 million yuan, down from 130 to 140 percent. According to Shang Zhengbao information statistics, as of today, has released results for the first half of the 11 fertilizer companies notice, only advance by Hubei Yihua, two pre-cut, three continued losses, the first two losses, three losses. Among them, five natural gas, the least optimistic about the performance of fertilizer companies, in addition to the sky of losses, the construction of peak chemical pre-cut, down about 63.69%, net profit of about 57 million yuan; Sichuan Meifeng Pre-cut, net profit of about 39.55 million yuan to 65.9 million yuan, down from 50 to 70 percent; Chuanhuagufen first loss, net loss of approximately 10 million to 15 million yuan, down from 113.71 to 120.56 percent.
        Starting from the February, high urea price 1750 yuan from the current round of price / ton all the way down, the Ministry within one month of the end of 2009 the region fell to 1,500 yuan / ton, then in 1500 to 1,600 yuan per ton price on wandering. China Business Network nitrogen analyst Lu Yang Yi told reporters, industry oversupply of urea significantly, the first half of this year, companies operating rate of urea from 70 to 73 percent, even so, business is still a lot of inventory. And from 2008 to 2009, companies operating rate of urea 85% to 90%.
        Urea price hovers low, some enterprises have encountered difficulties. Run development days notice, urea market is still in the doldrums, high coal prices, product pricing and costs are still upside down, to restore car will have a greater loss. To this end, on April 6, the company has limited parking capacity.
        Terminal prices and costs between enterprises on the fight. Natural gas feedstock for the urea business of natural gas, accounting for over 60% of the cost. The first half of this year, gas prices up, to be blow nitrogen gas. Sichuan Meifeng say the price of natural gas transportation pipe network were up 0.31 yuan, up 30% margin, the company will increase in 2010 cost 100 million yuan. Jian Feng Chemical said the price adjustment for natural gas in 2010 will increase the company's cost about 100 million yuan. Chuanhuagufen said the gas price adjustment affect the company's net profit of 100 million yuan or so. Yuntianhua said it would increase the company's 2010 production costs of about 70 million yuan. Lutianhua said the gas price adjustment will allow the company to reduce 2010 net profit of about 160 million yuan.
        Sichuan is China's only a few one of a large natural gas source. Early, because it is hard to accept natural gas to consumers and revitalizing the local economy, our arrangements in the Southwest, six natural gas fertilizer plant, including Yuntianhua, Chitianhua, Jian Feng Chemical, Chuanhuagufen, Sichuan U.S. Feng, Lu day of. All of these companies listed. At present, not yet published in the first half Chitianhua Announcements.
        Natural gas is clean energy, because of its scarcity, natural gas prices or just the beginning. The recent meeting of the Western Development session, on the western natural gas resources tax levy. Resource tax, once imposed, the cost is likely to shift to the downstream. (Ruan Xiaoqin)