Pan Derun, vice president of the China Petroleum and Chemical Industry Association and chairman of the China Nitrogen Fertilizer Industry Association, recently stated that building a new socialist countryside is a major historical task put forward by the Party Central Committee and a major strategic decision. The nitrogen fertilizer industry is even more responsible.
It is understood that from December last year to January this year, the National Development and Reform Commission and the Ministry of Finance successively issued two documents directly related to chemical fertilizers. The first is to reform natural gas prices and appropriately increase the ex-factory price of natural gas in the near future. It is clear that natural gas prices will be in line with the international market in the next five years, which means that many fertilizer companies' production and economic interests will be affected. Second, it is required to do a good job in the production, supply and price control of chemical fertilizers to ensure the use of fertilizers for spring plowing. These two documents were issued consecutively, indicating that fertilizers will gradually move toward market pricing mechanisms, but at the same time they must provide necessary policy support for fertilizer production.
When reporters asked whether the unfavorable factors of natural gas price adjustment would affect spring plowing, Pan Derun replied that there was no problem with the supply of nitrogen fertilizer in general. The light storage in the winter and the current production situation are all good. It should be said that through the implementation of these policies, the price of fertilizers can also be stabilized and there will not be much fluctuations. However, the nitrogen fertilizer industry should also do the following three tasks:
First, we must resolutely implement the fertilizer price policy, earnestly guarantee the interests of farmers, and reduce the burden on farmers. Recently, the Agricultural Resources Circulation Association has jointly issued a declaration of integrity in the field of agricultural resources. This is a good thing. The credibility of the enterprise depends on the quality of the guarantee and the implementation of the price policy. This is the key to the success or failure of a company.
Second, we must improve the technological level of enterprises, save energy, reduce costs, and increase production. At present, there is a certain gap between the energy consumption level of nitrogen fertilizer companies and the advanced level in foreign countries. More advanced enterprises have potential in energy conservation, and relatively backward enterprises have greater potential for energy conservation. Therefore, we must achieve the goal of saving energy and reducing production costs by improving the level of technology and management.
Third, we must do a good job in soil testing formulation services and promote scientific fertilization. Enterprises should become the main force for soil testing and formula fertilization.
Pan Derun said that these three tasks should be an important task for the nitrogen fertilizer industry in 2006. Doing a good job in these three tasks is a concrete manifestation of the requirements of the nitrogen fertilizer industry to implement the central government's new rural construction. In recent years, the state has issued a series of policies to support nitrogen fertilizer production, which has created very good conditions for the development of nitrogen fertilizer companies and the industry. However, companies must realize that in the future development, the competition for survival of the fittest is fierce. First, some resource-rich provinces are using their resource advantages to plan and build large-scale nitrogen fertilizer projects. The trend of industrial concentration is becoming increasingly apparent. Second, the prices of coal and natural gas continue to rise. The current coal price has increased by one ton compared to the third quarter of last year. 70 yuan or so. If the enterprise does not have a sense of urgency, it will not be able to participate in the competition if it does not accelerate the improvement of the technological level and the cost will not fall again.
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