China Phosphate Fertilizer Industry Association: Optimizing Resource Allocation to Suppress Overcapacity
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Wu Xiyan said that one of the major tasks of the Phosphate Fertilizer Association this year is to guide enterprises to strengthen resource allocation. Phosphorus fertilizer is a resource industry. Whoever does a good job of optimizing resources allocation will have the initiative and who can achieve sustainable development.
He pointed out that the production of ammonium phosphate requires not only phosphorus resources, sulfur resources, but also ammonia synthesis. These three kinds of raw materials have realized resource optimization and have the most important competitiveness. Through enterprise restructuring, realizing resource integration is a good way to achieve optimal resource allocation. Yunnan's "provincial team" and "prefecture-level team" of phosphate fertilizer companies restructured into Yuntianhua International Chemicals Co., Ltd., which once ranked third in the world. The two major companies in Guizhou, Wengfu Group and Kaifeng Phosphorus Group also play a decisive role. Now, in addition to integrating in the province, these large enterprises have also expanded outwards step by step, through the ties of resources, to carry out cooperative reorganization and build large-scale phosphorous chemicals and fine chemical companies. For example, Gansu Yifu Chemical Co., Ltd., a joint venture between Guizhou Hongfu Industrial Co., Ltd. and Jinhua Group, uses the phosphate rock resources of Guizhou Hongfu, the ammonia of Jinhua Group, and the sulfuric acid of Jinchuan Group Co., Ltd., which is a typical resource optimization configuration. Handan Group also launched a 300,000-ton-a-year phosphoric acid project in Dazhou, Sichuan Province, making full use of Zhaofu's abundant phosphate resources and natural gas, sulfur and other resources in northeast Sichuan to engage in wet purification of phosphoric acid and production of phosphate fertilizer.
According to Wu Xiyan, in 2009, domestic phosphate fertilizer output exceeded 1 million tons per month (equivalent to 100% P2O5, the same below), and annual production will hit a record high. However, in the first 10 months of last year, the enterprises were very difficult. The economic efficiency of production and distribution companies was generally not good, but the output of the enterprises was greatly increased, and some areas were still in full swing. He predicted that this year's domestic total output of phosphate fertilizer will reach 14.5 million tons, 12 million tons can fully meet domestic demand, and only strive for exports of 2 million to 2.5 million tons, to improve the economic efficiency of the goal is possible. To this end, this year's Phosphate Fertilizer Association will, based on the principle of the National Development and Reform Commission suppressing excess production capacity, inform the industry of the situation in a timely manner, and cooperate with the National Development and Reform Commission to formulate a Phosphate Compound fertilizer access threshold. The Phosphate Fertilizer Association will launch an industry-wide expert committee to put forward some constructive suggestions on energy consumption, "three wastes" emissions, and other indicators; and on the basis of the industry situation, it will propose "12th Five-Year Plan" industry development proposals for related departments.
Wu Xiyan said that in order to tie in with the development of water-saving agriculture, the Phosphatic Fertilizer Association will also promote slow-release fertilizers and water-soluble special fertilizers in the future. The level of fertilization in China is three times the world average, and the difference is very large in the eastern, central and western regions. Western investment is far from enough. In many areas in the east, fertilizers are used excessively and pollute the groundwater. Our fertilizer efficiency is only about 30%, which is lower than the world average. In the long run, China's agricultural development will not be sustainable. The fertilizer industry provides special fertilizers for agriculture, and has a heavy responsibility for secondary processing and tertiary processing. In combination with drip irrigation, water, fertilizer and medicine are combined to supply nitrogen, phosphorus, potassium and trace elements to crops during the irrigation process, which not only saves water, but also improves the utilization rate of chemical fertilizers.
