16 Yunnan nitrogen fertilizer companies call for lightening

Sinochem Xinxun's spring plowing is on the horizon. It should be the peak season for fertilizer sales. However, the heads of 16 nitrogen fertilizer companies in Yunnan Province cannot laugh. Because Yunnan Province currently charges industrial power companies an additional 3 cents per kilowatt-hour for processing electricity, and the country raises the price of electricity, companies are miserable. On February 6, the reporter heard the call from the company during the interview and hoped to cancel the processing of electricity from coal and stop the price increase.

It is understood that in the fourth quarter of 2011, the General Office of the Yunnan Provincial Government issued a notice that industrial users had already implemented electricity prices for dry seasons of electricity for production, from November 1, 2011 to April 30, 2012, per kilowatt-hour. Then add 3 cents to the coal processing electricity fee, while granting coal to the thermal power plant subsidies. Immediately afterwards, the National Development and Reform Commission issued a notice to increase the sales price of China Southern Power Grid from December 1, 2011, with an average increase of 2.2 cents per kilowatt-hour. Adding two items means that the nitrogen fertilizer manufacturers increase 5.2 cents per kilowatt-hour of electricity.



According to a person in charge of a company in Honghe Prefecture, due to rising national electricity prices, the company’s electricity cost will increase by more than RMB 10 million in 2012; due to the increase in coal processing fees in Yunnan province, the company’s electricity cost will increase by nearly 700 in half a year. Ten thousand yuan. In addition, the price of raw coal has soared, greatly exceeding the increase in the price of products, which has led to a dramatic increase in the company’s costs and difficulties in its operation. The person in charge believes that the processing of electricity bills for coal processing is a temporary subsidy policy for coal-fired thermal power companies in Yunnan Province. However, if the country subsequently raises electricity prices, it also collects electricity from coal processing fees, resulting in repeated increases in electricity prices.

Due to the increase in coal prices and electricity prices, some fertilizer companies suffered serious losses. A person in charge of Kunming Shennong HSBC Chemical Fertilizer Co., Ltd. told the reporter that the company has lost more than 1 million yuan a month since the coal was charged for processing. However, if the company chooses to stop production, the loss will be even greater, and the company will also have to pay nearly 900 yuan. The livelihood of workers makes this enterprise very "tangled." He told reporters that the rise in electricity prices and coal prices has increased urea production costs by 292 yuan per ton and ammonium bicarbonate by 98 yuan per ton.

It is estimated that the production of ammonia in Yunnan Province in 2012 will reach 2.5 million tons, and the total power consumption of nitrogen fertilizer enterprises will reach 2.6 billion kWh. The rise in the national electricity price will increase the company's cost by 57.2 million yuan, and the increase in coal processing fees will increase by 39 million yuan. The total increase in electricity expenses for the two items was 96.2 million yuan.

With coal and electricity prices soaring and product prices being difficult to increase significantly, industry insiders have analyzed that if the electricity bill for coal processing is not cancelled, a part of the nitrogen fertilizer companies in Yunnan Province will be forced to suspend production, which may affect the production of spring plowing. The 16 nitrogen fertilizer companies in the province jointly called on the relevant departments in Yunnan Province to exempt the enterprises from processing coal for electricity charges, refund the fees they have collected, and give enterprises the opportunity to recuperate.