In 2008, the price of imported potash in China increased by 400 US dollars per ton compared with 2007. As a large agricultural country, China imports the world's largest potash fertilizer, and its foreign dependence is over 60%. This latest negotiated price has caused domestic downstream companies to surprise themselves. One of the negotiators, China's largest potash importer, Sinochem Group and its Sinofert (0297.HK), fell into the storm of public opinion and was accused of “monopoly”, “profiteering”, and “collaboration inside and outside”. .
Some companies even speculated that Sinochem and China Agriculture, on behalf of domestic import companies, negotiated with foreign companies when negotiating, and partnered to increase the price of potash imports. One of the arguments is: Negotiating opponents - Canada's Canpotex Corporation is one of the world's largest potash fertilizer suppliers, PCS's overseas sales company, while PCS holds 20% of Sinochem Fertilizer's shares, which is the latter's second largest shareholder. Stephen Francis DOW-DLE, Senior Vice President of Fertilizer Sales at PCS, is currently a non-executive director of Sinochem Fertilizer Holdings.
On the question of the outside world, on April 28th, Sinochem Chemical COO (Chief Operating Officer) Li Qiubing clarified one by one when interviewed by a reporter from the China Economic Times.
"Understanding pricing" "It is a big joke to say that we collude inside and outside." Li Qiubing told this reporter.
At the negotiation table of potash fertilizer imports this year, Li Qiubing represented Sinochem Group, and the other two representatives were China Agricultural Production Information Group Corporation, which was called "China Agriculture" Vice President Guo Yanmin and deputy manager of Sinofert Chemical Fertilizer Department Guo Zhenhua. The other 8 negotiators elected by companies that have the right to import fertilizers.
Li Qiubing said that the Chinese negotiating partner is Russia's Ural Potash Corp., a joint venture between Uralkali and the Belarusian potash company, BPC (the world's largest supplier of potash fertilizers), rather than Canpotex. The price was determined after negotiations with the BPC, Canada's PCS also follow this price. China entered into contracts with BPC and PCS on April 15 and April 16 respectively. Moreover, the PCS prices in the same period and in India are similar to those in China. This can prove that there is no problem of "collaboration inside and outside."
“On April 23rd, BPC’s potash fertilizer prices in the negotiations with Southeast Asia and Latin America have already exceeded US$1,000/tonne. Therefore, the price we negotiated is still in the low-price zone,” said Li Qiubing.
Li Qiubing’s “low price” is the price of the potash fertilizer import agreement reached by the Chinese delegation and BPC on April 15. In 2008, the price of imported potash fertilizer in China increased by 400 US dollars per ton compared to 2007.
Analysts believe that according to the current cost of transportation, the domestic CIF price of imported potash will reach 700 US dollars / ton.
Li Qiubing told the China Economic Times that the delay in the timing of negotiations is also one of the reasons for the large increase in import prices this year. Last year, our country negotiated prices before the Spring Festival and was much lower than other countries. On March 21 this year, BPC negotiated with India at 625 US dollars/ton. On April 15th, only 20 days later, the price went up a lot.
"If our negotiations are more efficient, prices will be even lower," Li Qiubing said.
The heads of several other domestic fertilizer production companies hope that the negotiation mechanism will make adjustments. They believe that the complete liberalization of the potash market should be the best way to ease the high price of potash fertilizers. The state should take this opportunity to liberalize its operations and break the monopoly of the company on potash fertilizer.
"On the one hand, it is difficult to reach an agreement internally. The timing of negotiation is delayed more. On the other hand, if you negotiate with the international giants alone, you will be defeated by your opponents. The result of a big fight may be higher prices. Miserable, like Brazil did not adopt a joint negotiation mechanism, will always be the highest price in the market." Li Qiubing said.
Compared with a rise of US$25 per ton for 2006 and a US$5 increase for 2007, the increase of US$400 this year can be described as “blowout”. In mid-January 2008, a fertilizer industry research report released by a domestic brokerage firm also predicted that “China's potash fertilizer import prices will experience further upward pressure in 2008, with an expected increase of around US$25/ton.” Institutions have indicated that this price has exceeded expectations, and many fertilizer companies have even expressed their unacceptability.
"But this is equivalent to the market price of potash in overseas countries," said NI Xiaoman, an analyst at BOC International.
Dajun Securities analyst Zhang Junjie also said in an interview with the China Economic Times reporter that the CIF price for imported potassium chloride on March 21 was 625 US dollars, which is a bit lower than China's, because India is earlier than us. Month to sign the contract.
"In 2007, the appreciation of the renminbi, the strengthening of international oil prices, and the rise in raw materials caused the agricultural materials market to face 'soaring' pressure, and the global cif price of major potash importing countries has risen sharply," said Guo Tao Securities Wei Tao. It is understood that as the fourth largest importer of potash, Brazil, the CIF price for imports in the second quarter of this year has also reached 750 US dollars / ton, more than twice the price of the same period last year. CIF in Southeast Asia rose from about US$230/ton in early 2007 to US$300/ton in mid-year and reached US$450/ton by the end of the year, and it has now reached a historic high of US$750/ton.
Li Qiubing told this reporter that the global potash supply will be tight in the next two years. The extent to which prices will rise is currently unpredictable, but it will be higher next year.
Some people even predict that the international potash market will likely reach 1,000 US dollars / ton within the year.
The Monopoly Debate This reporter learned from the interview that at present, of the 10 companies in China that have potash fertilizer import rights, 6 of them are local fertilizer producers to the two central enterprises – Sinochem and Chinese agricultural capital for potash imports. Monopolistic behavior has long been a grudge.
"The realization of a variety of chemical fertilizers are all rising sharply. Why does the rise in potash prices only cause such a big response?" Chairman of a domestic chemical company believes that the most important reason for him is that the price increase of other products is in a complete competition. Under the conditions, but the potash market competition is not sufficient.
Some people in the industry also pointed out clearly that, with the exception of Sinochem and China Agricultural Resources, the other eight companies “have gained import rights for three years, yet no one has imported one ton of potash fertilizer from overseas”.
In this regard, Li Qiubing said: "At present, we do not know how much potassium is directly imported by the other eight companies, but I know that CNPC International has directly imported over 100,000 tons from overseas."
Li Qiubing believes that there are no quota restrictions on the import of potash fertilizers in the country and they can be imported with import rights. Therefore, the potash market is even more open than the nitrogen fertilizer market.
A local purchasing manager of fertilizer companies said in a telephone interview with this reporter that their company also has import rights, but it is still “not operated”, and other companies with import rights are “probably the same”. In this regard, his understanding is: If the company directly imports from overseas, a ship will be loaded with 560,000 tons of cargo, equivalent to several hundred million float in the sea for a month or two, too much capital demand, the risk is also great.
“We mainly import through Sinochem and China Agricultural Funds, and of course we also purchase from border trade companies and Qinghai Salt Lake.” He told this reporter that it was mainly due to their own reasons that they did not import directly from overseas.
Some people are happy that someone will calculate the CIF price of $700 per ton. The domestic retail price of potassium chloride in the domestic market may rush to as high as RMB 5,000. This obviously made the industry unsustainable.
“Now the country’s chemical fertilizers are rising loudly. They are waiting to see if there are any good policies. Now Salt Lake Potash and Sinochem do not offer prices, and the company has already cut production,” the manager said.
"Two-thirds of the compound fertilizer producers may cut production or stop production." An industry source expressed concern.
Potash fertilizer producers are undoubtedly the most direct beneficiaries of the international surge in potash prices.
“According to the exchange rate of 1:7, the price of imported potash was equivalent to RMB 4550-4830/ton, and the CIF price alone was more than RMB 1,000 per ton higher than the ex-factory price of 3,250 yuan/ton in early March in domestic salt lake potash. Due to imported potash fertilizer The 6-70% of domestic consumption is the determining power of the market price, so it can be predicted that the domestic potash fertilizer manufacturers will continue to increase the ex-factory price.” Wei Tao said that the main potash stock of A-shares has been salt potash fertilizer for over a year. The stock price of (000792) basically keeps hitting a new high following the rise in potash prices.
Since mid-October 2007, the stock index has fallen by 50%. Salt Lake Potash has increased from 60 yuan to 85 yuan. The current price-earnings ratio has reached 80 times. At present, Salt Lake Potash has stopped offering prices for more than a month. The industry has speculated that it is brewing new prices.
The current price-earnings ratio of the second largest shareholder of the Lop Nur potassium salt company, Guannong (600251), is 2,000 times higher. “Although the after-tax profit per share is only 4 cents in the first quarter of this year, the agency’s general forecast for 2008 performance of Guannong has been at RMB 2.5. If the production capacity can be released, the results can be realized, compared with the current price of more than 60 yuan, its price-earnings ratio. It is not high," said Zhang Junjie.
“We believe that potash fertilizer is the preferred type of fertilizer investment. Its resource properties are the strongest, the cost is relatively constant, the price increase can basically be converted into corporate profits, and potassium fertilizer mainly relies on imports, can not limit prices, so it is also the most secure variety.” Wei Tao said.
With the successful acquisition of a 100% stake in Jilin Fertilizer & Pesticides Group Co., Ltd., Sinofert has already participated in and controlled 12 chemical companies nationwide. In the potash fertilizer market, Sinofert achieved sales of 5.69 million tons of potash fertilizer in 2007, which accounted for 55% of the domestic potash fertilizer market.
The 8 Hong Kong dollar is the target price for Sinochem Fertilizer's 12-month stock price forecast. Compared to its current price of HK$6, there will be more than 30% increase in the future.
According to Zhang Junjie, as the largest fertilizer distributor in China, the total number of distribution centers for Sinofert has reached 1,672 by the end of last year, and the market has obvious advantages. The strong potash price factor will promote the growth of Sinofert's performance.
“Sinochem Fertilizers also holds 18.49% stake in Salt Lake Potash Fertilizer. If calculated at 4,300 yuan/ton in 2008 and 5,000 yuan/ton in 2009, the net profits of Salt Lake Potash will be 3.15 billion yuan and 4.07 billion yuan in the next two years, respectively. Yuan, the net profit contributed to Sinofert will be 580 million yuan and 750 million yuan, respectively, said Zhang Junjie.

A fastener is a hardware device that mechanically joins or affixes two or more objects together.

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Fasteners are used for fastening and application of a very broad class of mechanical parts. In all kinds of machinery, equipment, vehicles, ships, railways, bridges, buildings, structures, tools, equipment, instruments and supplies, such as the above, you can see a wide variety of fasteners. It is characterized by many different specifications, performance of different purposes, and standardization, serialization, GM seed is also very high degree. Therefore, it was also the existing national standards for a class called fasteners standard fasteners, or simply standard parts. Fasteners are the most widely used machine parts. With China's accession to the WTO in 2001 and entered the ranks of the international trading nation. China's fastener products are exported to countries around the world, the world's fastener products are constantly influx of Chinese market. As one of the fasteners import and export volume of larger products, to achieve international standards, to promote Chinese enterprises to the world of fasteners, fastener enterprises to promote the full participation of international cooperation and competition, with all the important practical significance and strategic significance. Due to the specific requirements of each specific fastener product specifications, dimensions, tolerances, weight, performance, surface condition, marking methods, and acceptance inspection, marking and packaging projects.

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B. Main particulars

MAIN PARTICULARS

Material

Carbon steel(20#-60#, S235-S355-), Alloy steel(4140,4340,42CrMo, -)

Standard

ASTM, ASME, DIN, JIS, ISO, BS, API, EN

Certificate

ISO9001

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Up to +/- 0.002mm

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As per drawing, as large as we can

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CNC turning, CNC turning and milling compound processing, 3/4/5 axis CNC machining center, wire-cutting, EDM, grinding etc.

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Machined surface with oil, blasting and painting, anodize, polishing, powder painting, electrophoretic coating-

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as per clients` requirements

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3-20 days for sample, consult with customer for mass production

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The photos of our Fastener8 fastener

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