The fattening incident of Feiyan has caused the remaining cost advantage to be seriously challenged - Zhejiang phosphate fertilizer enterprises can survive?

In May of this year, Zhejiang Longyou Feiyan fertilizer incident (see the report on May 26th and June 7th in this newspaper) caused more than 10,000 mu of crops to be damaged and the company's products were halted. Although the “flying geese” wings are only the quality problems of individual products of individual companies, this incident has caused the existing cost-benefit of the Zhejiang phosphate fertilizer production enterprises, which are already difficult, to be seriously challenged. They have to face the question: Can Zhejiang's phosphate fertilizer companies survive?
Although Zhejiang is no longer a big agricultural province, there is still a certain demand for phosphate fertilizer products such as superphosphate, calcium and magnesium. The reporter learned from Zhejiang's agricultural department that last year the province's pure sales of phosphate fertilizer was about 120,000 tons. The status quo of Zhejiang phosphate fertilizer production enterprises are: lack of resources, production scale is small, production process is backward, management level is not high.
The lack of phosphate resources has always been the pain of Zhejiang phosphate fertilizer manufacturers. There is basically no phosphate rock in Zhejiang, and about 500,000 tons of phosphate ore needed annually are purchased from other provinces. In recent years, with the completion of large-scale phosphate and compound fertilizer plants in Yunnan, Guizhou, Hubei and other phosphorus-rich areas, their phosphate ores are given priority to ensure the production of large-scale local plants, and the volume of relocation has dropped significantly. At the same time, a series of policies have also been introduced in various places to suppress the export of phosphate ore by price leverage. Only this year, Hubei phosphate rock has been raised four times, with a 90% to 110% increase. Phosphorus ore in Yunnan and Guizhou rose by 160 yuan per ton. At present, the mineral powder containing more than 30% of phosphorus pentoxide in Zhejiang is close to 500 yuan/ton. The phosphate rock price hikes and tight supply have caused Zhejiang phosphate fertilizer companies to start under-employed severely. In 2004, they only reached 47% of production capacity, and their profit margins have dropped significantly.
The small-scale production, decentralized production capacity, and low technical level and management level have made Zhejiang phosphate fertilizer companies more difficult. The relevant person in charge of the Zhejiang Phosphate Compound Fertilizer Industry Association told the reporter that at present, Zhejiang is a medium-sized and small-scale phosphate fertilizer production enterprise, holding a total of 27 phosphate fertilizer production enterprises, and the total production capacity is only 1.215 million tons (in kind).
Under these circumstances, in recent years, Zhejiang's phosphate fertilizers have been able to hold on to most of the markets at their doorsteps. Apart from the fact that farmers do not understand and are not willing to use foreign fertilizers, the key is that the phosphate fertilizer producers in Zhejiang are The cost advantage of using waste sulfuric acid instead of genuine sulfuric acid.
According to the reporter's knowledge, Zhejiang Province boasts a well-developed pharmaceutical and fine chemical industry and has abundant sulfuric acid resources. According to the relevant regulations, as long as these waste sulfuric acids do not contain toxic or hazardous substances, calcium superphosphate production enterprises can use some of them (about 30%). Its price is only 10% to 40% of that of genuine sulfuric acid, which can reduce the cost of phosphate fertilizer by about RMB 20-50/ton. Phosphate fertilizer enterprises in other regions do not have such abundant sulfuric acid resources. It is this cost advantage of tens of yuan that enables Zhejiang phosphate fertilizer production companies to survive.
However, the sudden fate of Feiyan in May of this year caused Zhejiang phosphate fertilizer companies to question the advantages of the only system of life: the composition of waste sulfuric acid is complex, and toxic or hazardous substances that may exist are not strictly controlled, or not The ability to identify the resulting fat damage is extremely serious. The technical and management of the Zhejiang Longyou Feiyan Chemical Co., Ltd. that happened this time was regarded as first-class in the Zhejiang phosphate fertilizer enterprises. Actually, there is such a thing. Can anyone guarantee that other enterprises will not happen in the future?
This is the question of the Zhejiang phosphate fertilizer production company's life. Without resource advantages and without technical and managerial advantages, the remaining cost advantage will now disappear. The person in charge of a production company told the reporter worriedly that if the abandoned sulphuric acid is used instead of genuine sulphuric acid, Zhejiang's phosphate fertilizer production enterprises will not have any living space and can only close.
"Well, in the market economy rules of the survival of the fittest, companies should not be surprised if they live or die. However, if Zhejiang's phosphate fertilizer production enterprises are closed, the demand for 120,000 tons of phosphate fertilizer per year in the Zhejiang market can only be supplied entirely by foreign products. The price of the product has only risen by 10 yuan, and farmers in Zhejiang will also pay an additional 1.2 million yuan for this," said a person in charge of the Provincial Phosphate Compound Fertilizer Association.

Motor

Overhead Crane,Gantry Crane,Working Platform Co., Ltd. , http://www.nscrane.com