Under the environment of rising boom for
phosphate compound fertilizer, the production capacities of many of Anhui
Sierte’s projects are being released. it will promote the company’s performance
to climb to a higher level.
Source: Internet
On 11 May, 2015, Anhui Sierte Fertilizer
Industry Co., Ltd. (Anhui Sierte) said that its pyrite project in Xuancheng
City, Anhui Province will be put into production in July. It is said that Anhui
Sierte established the Maweishan Pyrite Branch in Xuanzhou District, Xuancheng
City. After being put into production, Anhui Sierte’s production capacity will
be increased.
Meanwhile, Anhui Sierte said in the
interactive platform for investors relationship that, as to the company’s
research base for formula fertilization by soil testing, its building work has
been completed and it is currently at the stage of software testing and
appraisal. The base is expected to be completed at the end of the year. Specifically,
the technique of formula fertilization by soil testing can treat and repair the
polluted soil. Some insiders believe that, with the wide application of the
formula fertilization by soil testing technique, Anhui Sierte will speed up the
transformation of new type of fertilizer to occupy the new fertilizer market
efficiently and set up a green brand with fertilizer of ecological formula for
the company.
In addition, according to CCM, the
technological upgrading projects of both monoammonium phosphate (MAP) with an
annual capacity of 200,000 t/a and the potassium sulfate with an annual
capacity of 40,000 t/a, which Anhui Sierte launched in Oct., 2014, have been
put into operation in succession.
Anhui Sierte is known as a modern high-tech
corporation, which integrates the production of phosphate compound fertilizers
with various kinds of fertilizer trade and whose businesses mainly involve in
export with the major products being MAP.
In 2015, with Anhui Sierte’s projects being
put into operation, the company’s industrial chain is gradually integrated and
its overall strength & market competitiveness have improved significantly.
At the same time, there has been a rising bloom in the phosphate compound
fertilizer industry across the globe, which not only is beneficial for Anhui
Sierte to release the capacity of its newly established projects and broaden
the distribution channel for Anhui Sierte’s products, but also has contributed
to the company higher achievements.
According to CCM, after having experienced
around three years of cyclical downturn across the globe, the phosphate
compound fertilizer industry has been recovering since 2015. Based on its
estimates and judgment of the phosphate supply and demand across the globe,
Mosaic predicted that, the operating rate of phosphoric acid from 2014 to 2020
would maintain at a rate of around 85%, wherein the operating rate from 2014 to
2016 would be on the rise.
In terms of the domestic export market of
MAP, China’s export market of MAP showed an overall upturn in Q1 2015 and the
total MAP exports in Q1 amounted to 481,037.89 tonnes with an increase of
76.14% compared with Q1 2014. Anhui Sierte, which is mainly aimed at the export
market, said that, the company’s net profit in Q1 2015 was USD8.55 million
(RMB52.27 million) with a YoY increase of 43.67%. Also, benefited from the
upturn of export market, currently, the company’s orders are full and the
products sell very well.
Under the rising boom of phosphate compound
fertilizer coupled with the release of Anhui Sierter’s projects capacity, the
domestically renowned securities research institute, Guotai Junan Securities,
said in the latest research report that, benefiting from the accelerating
integration of compound fertilizer industry and the building of company’s
e-business platform, Anhui Sieter’s market share of compound fertilizer has
increased and the company is continuing to improve its upstream industrial
chain to increase the cost advantages.
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