The executive meeting of the State Council held on January 9 made a study and deployment of stabilizing prices, demanding that the prices of refined oil, natural gas and electricity be not adjusted in the near future; the prices of fertilizers such as urea and phosphate fertilizers must also remain stable. Indeed, due to the increase in costs, adjustments must be made. The regulations are reported to the government price authority for approval. At the same time, the meeting requested all localities to organize special inspections on prices of fertilizers and other agricultural materials before the Spring Festival, regulate price behavior, and ensure market supply.
The State Council's deployment of relevant chemical product prices has a direct relationship with the recent general rise in prices of various chemical products. The rise in the prices of these chemical products is inextricably linked with the soaring price of international crude oil. The continuously high international crude oil futures price broke through the threshold of US$100/barrel at the beginning of this year. With the change of international situation, the price of crude oil continues to soar. The soaring price of crude oil has had a series of effects on downstream chemical products.
China's refined oil prices have risen several times under cost pressures. On November 1, 2007, domestic refined oil prices have risen by RMB 500 per ton; Natural gas, from November 10, China's upstream natural gas fields for industrial users, natural gas, factory benchmark prices From 0.93 yuan/cubic meter to 1.33 yuan/cubic meter, a substantial increase of 43%; in late November 2007, the urea ex-factory price rose rapidly from 1600 yuan/ton at the beginning of the month to 1900 yuan/ton, with an average of 100 yuan per week. Yuan; domestic ex-factory price of DAP was as high as 3,200 yuan/ton, an increase of 500 yuan from 2,700 yuan at the beginning of the month; ex-factory price of monoammonium phosphate reached 3,100 yuan, up 500 yuan from the beginning of the month; and it has been stable at 1,700 yuan for the past two years. The domestic price of 1,800 yuan for compound fertilizer also rose to 2,550 yuan; in the field of pesticides, the highest price increase was glyphosate, and the price of glyphosate climbed from less than 30,000 yuan/ton at the beginning of the year to the current 50,000 yuan. / Ton or more, but also led its raw material glycine prices from 14,000 yuan / ton all the way up to 20,000 yuan / ton.
Refined oil, natural gas and electricity belong to the energy industry. The impact is wide and the impact is large. The price of stable energy products is an important role in stabilizing prices. On the one hand, it faces the pressure of rising upstream product prices and rising costs. On the other hand, as part of chemical products that are important national production materials, price changes are strictly controlled and industry pressure can be imagined. Looking at the current situation, the requirement that natural gas and electricity prices cannot rise in the near future is a major positive news for the chemical industry. In particular, the price of electricity is no longer raised in the short term, which is very beneficial to chemical industries such as calcium carbide and soda ash.
Fertilizer products as the products in the chemical industry that are named to stabilize prices and conduct price checks have received widespread attention. The price of fertilizers such as urea and phosphate fertilizers is affected by upstream raw materials and electricity prices. Cost pressures are very high in the past two years. Fertilizer products, as an important agricultural product, belong to the national regulation and price limit products. Therefore, the industry profits in the past two years have not changed. not ideal. It is understood that the current urea ex-factory price is 1,500 yuan / ton, and with the increase in chemical fertilizer cost pressures, in 2007 the national fertilizer company urea costs have increased to 1500 ~ 1600 yuan / ton, this year with energy products prices rose Continue to rise. At present, the nitrogen fertilizer industry has proposed to the NDRC to raise the quasi-premium price of urea to 1,600 yuan/ton.
In short, from the current situation, the rising trend of international crude oil prices has not changed due to factors such as the rise in overall crude oil demand. Affected by this, in the long term, the prices of various energy products will continue to rise, which will inevitably increase the cost pressure of related industries and form a series of chain reactions. However, under the macro-policy control, the prices of relevant chemical products related to the national economy and people's livelihood such as pesticides and fertilizers cannot grow too fast, and there is limited room for growth. Therefore, for the oil and chemical industries to achieve sustainable development and higher profits, they must work hard to save energy, reduce economies of scale, and adjust product structure, so that sustainable development can be achieved under severe market conditions.

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