Recently, the Yunnan Provincial Energy Conservation Work Leading Group Office issued the "Notice on Resolutely Doing a Good Job in Dual Control of Energy Consumption" to strengthen the control of key industries.
Requirements in the document:
Strengthen the production control of the yellow phosphorus industry to ensure that the average monthly output of the yellow phosphorus production line from September to December 2021 shall not exceed 10% of the output in August 2021 (that is, reduce the output by 90%).
Strengthen the production control of the industrial silicon industry, and ensure that the average monthly output of industrial silicon enterprises from September to December is not higher than 10% of the output in August (that is, the output is reduced by 90%).
In addition, companies in the four industries, including fertilizer manufacturing, basic chemical raw material manufacturing, coal processing, and ferroalloy smelting, whose value-added energy consumption per 10,000 yuan is more than twice the industry average, are also required to limit their production by 90%.
Tight supply of yellow phosphorus may affect downstream phosphate fertilizer glyphosate
In previous years, Yunnan’s yellow phosphorus production capacity is generally 40% of the national production capacity. If the production is further reduced by 90% on the basis of August, the national yellow phosphorus production capacity may be further reduced by about 30%, which will cause the supply to shrink again and the national yellow phosphorus supply and demand. Will be further tense.
From the perspective of supply, Yunnan, Guizhou and Sichuan are the main areas for yellow phosphorus production in my country. If the yellow phosphorus operating rate drops and the supply is further tightened due to the dual control of energy consumption in Yunnan, most companies will be forced to shut down, and the inventory of production companies will decline significantly. From the perspective of demand, the main downstream of yellow phosphorus is phosphate fertilizer (about 30%) and glyphosate (about 26%). Gold, nine, and silver, ten are the traditional peak seasons for agricultural fertilizers, and orders from glyphosate manufacturers have been hot, and orders from some manufacturers are scheduled until October. The demand for yellow phosphorus will remain strong in the second half of the year.
Yuntianhua (600096) announced on the evening of September 13 that on September 7, an employee of the company's subsidiary Hulunbeier Jinxin Chemical Co., Ltd. died in a coma after being rescued at the work site. After the incident, Jinxin Chemical promptly reported to the relevant authorities in accordance with relevant regulations, and the plant was shut down according to the requirements on September 10th. The specific cause of the incident is currently under investigation. Jinxin Chemical's main production capacity is 800,000 tons of urea per year. At present, the cause of the incident is still under investigation, and the time for Jinxin Chemical to resume production and its impact on the company's production and operation is still uncertain.
Energy consumption control, upstream production limit, the original shortage of yellow phosphorus production is restricted, downstream fertilizer companies see this news, it is estimated that the pressure is great; Jinxin Chemical's emergency, currently still suspending production and waiting for the investigation results, if The inability to resume production as soon as possible is expected to have a huge impact on the supply of urea. The gold, nine, and silver, ten seasons, which were originally in strong demand for chemical fertilizers, seem to be facing a severe test soon!
Source: Mobile Public Account
