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Hubei: Phosphorus Chemical Products Stable

November 18, 2022

In mid-November, Hubei Province suffered from freezing rain, snow, and snow, and most regions experienced moderate to heavy snowstorms and partial snowstorms. The snowfall process was the earliest in the past 10 years and earlier in the past 30 years, 25-28 days earlier than usual. On November 16th, the daily average temperature and maximum temperature in most of Hubei Province, the lowest temperature in 17th and the depth of snow cover all broke the historical meteorological record of the same period. However, the reporter learned from several major Chemical Products markets in Hubei Province that due to the current low season of phosphate fertilizer, the market price of phosphorus chemical products in the province has not experienced large fluctuations recently, and several large chemical companies have not been affected by too much rain and snow. Production and business operations are relatively normal.
In general, the continuous rain and snow weather in the country during the previous period had limited impact on the market price of phosphorus chemical products in Hubei. On November 20th, the reporter saw in the chemical market of the province's larger chemical product market—Wuhuokoukou Chemical Market in Wuhan—where the price of phosphorus chemical products has not only risen but has declined slightly. The domestic DAP price was RMB 2767 in mid-November (ton price, the same below), which was the same as that in early November and was RMB 233, down 7.7% from RMB 3,000 in the same period of last year. The imported DAP price was RMB 2550 in mid-November. It was flat in early November, down 350 yuan, or 12%, from 2,900 yuan in the same period of last year. The price of calcium phosphate in mid-November was 518 yuan, down by 1 yuan from the beginning of November and down by 301 yuan from 819 yuan in the same period of last year. , down 36.8%; calcium magnesium phosphate in mid-November unit price of 496 yuan, compared with 3 yuan in early November, compared with 641 yuan in the same period last year dropped 145 yuan, down 22.6%.
The market prices of other chemical products in Hubei Province have also been relatively stable. The domestic unit price of domestic urea in mid-November was 1831 yuan, a decrease of 3 yuan from the beginning of November, a decrease of 0.16%, and a decrease of 614 yuan from the 2,445 yuan of the same period last year, an increase of 25%. Ammonium bicarbonate sold for 626 yuan in mid-November, a drop of 2 yuan from the beginning of November, a drop of 0.3%, and a decrease of 174 yuan from the 800 yuan of the same period last year, a decrease of 22%. The price of homemade potassium chloride in mid-November was 3,734 yuan, a decrease of 62 yuan from the beginning of November, a decrease of 1.6%, and a decrease of 578 yuan, or 13.4%, from 4,312 yuan of the same period last year. Domestic Compound Fertilizer in mid-November price was 1,535 yuan, down 34 yuan from the beginning of November, a decrease of 2.1%; compared with 2,856 yuan in the same period last year, a decrease of 1321 yuan, a decrease of 46.2%. The reporter saw in Wuhan Evergreen Chemical Market, Wuhan's larger chemical product market. On November 20th, the prices of most chemical products in the market were not much changed compared to the first half of November, and some even showed a slight decline.
Experts from the Hubei Provincial Economic and Information Commission told the reporter that there were no major fluctuations in the low-temperature rain and snow freezing disasters in Hubei's chemical product market. There are four main reasons: First, the government gave early warning. On November 13, the province issued a "Notice on Preventing Weather in Rain, Snow and Frozen Disasters." On November 16th, it officially launched a four-level response, requiring all localities and departments to implement a 24-hour on-duty system and a leader-led system. The second is active snow melting to keep the road open. In view of the heavy snowfall weather, the Hubei Provincial Department of Transportation urgently deployed emergency transportation support for the entire province's transportation system. Third, the company’s ability to resist risks has increased. Many large-scale chemical production enterprises have formulated plans, and many companies have stored enough raw materials such as coal in advance. Fourth, strong support for railway transportation. According to data provided by the railway department, on November 17, the railway in Hubei Province reached 86,000 tons of coal on the same day, and consumed 102.27 million tons of coal and 150.13 tons of inventories on the same day.
The good development of chemical companies in Hubei Province in recent months has also curbed the impact of rain and snow weather. In October, Hubei Yihua increased its PVC output to 92,000 tons, produced 60,000 tons of urea, and diammonium phosphate 12,000 tons, and completed a production value of 2.77 billion yuan, a year-on-year increase of 20%, an increase of 10 percentage points from August and an October output value ratio. Increased 240 million yuan in September; Hubei Saning Chemical Company produced 39,200 tons of urea and compound fertilizer, 27,100 tons, completed output value of 193 million yuan, an increase of 163%; Yichang Xingfa Group achieved an output value of 400 million yuan, an increase of 42.9%; Wuhan The growth rate of the industrial output value of the Gehua Group reached 172%, and Hubei Yangfeng Group increased by more than 50%. The good pre-production and management situation laid a solid foundation for responding to the disaster.

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