| PVA |
According to the latest customs data, the cumulative export of all kinds of chemical fertilizers increased significantly from January to February, with the growth rates of urea and compound fertilizers reaching about 400% and 900% respectively. Most notable is potassium sulfate. The same growth rate of 1700% in January has shocked the chin, and the data in February reached an astonishing 7000%. Exports from January to February have far exceeded the total volume of 2018.
Comments: Since this year, no export tariffs have been imposed on chemical fertilizers. Among them, export tariffs on potassium fertilizers have cancelled the quantitative pricing policy, which is more affected by the benefits. Relevant data show that the mainstream factory price of potassium sulfate in China has a higher price advantage than that in overseas markets. Authorities predict that China’s potassium sulphate exports will exceed 150,000 tons in the first quarter, and by this estimate, the same-rate growth in March will be more than 300 times incredible. Despite the seemingly low absolute quantity, the estimated annual export volume of about 600,000 tons is considerable for the apparent consumption of about 4 million tons of potassium sulfate worldwide.
Among A-share companies, Guannong (600251) holds 20.3% of the investment in Xinjiang Lop Nur Potassium Salt, which has an annual production line of 1.2 million tons of potassium sulfate. The total production capacity of potassium sulfate reaches 160 tons, making it the largest and most advanced potassium sulfate fertilizer base in the world. The company’s main profit growth came from China Investment Potassium. CITIC Guoan (000839) and Sirte (002538) also have certain potassium sulfate production capacity.
| POLYVINYL ALCOHOL |