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2024

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Stop production until next year! A chemical company announced a 90-day shutdown, and this raw material will soar?


With the news that Shanxi Orchid Science and Technology Venture Co., Ltd. (Orchid Chuangke) announced that its chemical branch would stop production for 90 days, it not only caused great shock within the enterprise, but also caused ripples in the whole chemical industry and even the wider economic field. Behind this decision is the increasing determination and action of Jincheng and even the whole country to protect the environment, which marks another important step in the prevention and control of air pollution in China. Edit search map # # # The policy drive behind the shutdown The suspension of Orchid Chuangke directly stems from the Notice on Implementing Differentiated Management and Control of Key Industry Enterprises in Autumn and Winter of 2024-2025 issued by Jincheng Ecological Environmental Protection Committee. The promulgation of this notice is a concrete manifestation of responding to the overall requirements of the state on ecological civilization construction, aiming at effectively reducing air pollutant emissions in autumn and winter and improving air quality through differentiated control measures. For chemical enterprises like Orchid Chuangke, although they face huge economic losses in the short term, in the long run, it is the only way to promote the transformation and upgrading of enterprises and realize green and sustainable development. # # # Economic Loss and Industrial Adjustment According to the announcement of Orchid Chuangke, the suspension of production is expected to lead to a significant reduction in urea production in the fourth quarter of 2024 and the first quarter of 2025, directly affecting sales revenue of nearly 90 million yuan. This figure not only reflects the direct economic loss caused by the suspension of production, but also reflects the survival dilemma of traditional chemical enterprises under the tightening of environmental protection policies. However, crises often breed a turning point. During the shutdown period, enterprises can use this time to carry out equipment maintenance, technical transformation and environmental protection upgrade, laying a more solid foundation for future production. At the same time, the government should also increase its support for the transformation and upgrading of enterprises, and help enterprises tide over the difficulties and realize green transformation through financial subsidies, tax incentives and other policy means. # # # The National Trend of Environmental Protection Renovation It is not an isolated case that the production of orchids was stopped. With the launch of the comprehensive air pollution control campaign in autumn and winter of 2024-2025 in Jincheng, the nationwide air pollution prevention and control work is gradually entering a climax. Many industries, from chemical industry to construction, coal, metal processing and so on, are facing stricter environmental supervision and remediation requirements. This is not only a big test for enterprises, but also a profound adjustment for the whole economic system. Through this rectification action, it is expected to push more enterprises onto the road of green development, promote the optimization and upgrading of industrial structure, and inject new impetus into high-quality economic development. Edit search map Short-term fluctuation and long-term prospect of urea market As one of the pillar industries in Jincheng, Shanxi, the change of urea output naturally affects the nerve of the market. In the short term, due to the suspension of production of enterprises such as Orchid Chuangke, the supply of urea may be reduced, and the market may be tight. However, from a longer-term perspective, the trend of urea market will be affected by many factors. On the one hand, with the continuous overweight of environmental protection policy, the traditional urea production mode with high pollution and high energy consumption will gradually withdraw from the historical stage and be replaced by a more environmentally friendly and efficient production mode. On the other hand, with the continuous progress of agricultural technology and the rational return of farmers' demand for chemical fertilizers, the market demand for traditional chemical fertilizer products such as urea will gradually stabilize. Therefore, for the future trend of urea market, we can't simply judge from short-term fluctuations, but should comprehensively analyze the policy orientation, industrial development and market demand. # # # Check the price of urea The price in Shandong is stable, and the ex-factory price of small and medium-sized particles is 1750-1800 yuan/ton; The receiving price of Linyi is about 1800 yuan/ton, and that of Heze is about 1780 yuan/ton. The price in Henan is lowered by 20-30 yuan, and the mainstream factory reference of small and medium particles is about 1730-1750 yuan/ton; Small and medium-sized particles in Shangqiu are sent to the reference of 1790-1800 yuan/ton. The price in Anhui is lowered by 20-40 yuan, and the ex-factory price of small granular urea is 1780-1870 yuan/ton. The price in Hebei is lowered by 20-30 yuan, and the mainstream ex-factory price of small particles is 1750-1760 yuan/ton; Small particles in Shijiazhuang market are sent to the reference of 1800-1810 yuan/ton. The price in Jiangsu is lowered to 30 yuan, and the ex-factory price of medium and small granular urea is 1810-1860 yuan/ton. The price in Hubei is stable, and the price of small granular urea is 1830-1860 yuan/ton. The price in Shanxi is lowered to 10 yuan, and the mainstream ex-factory price of medium and small granular urea is about 1750-1820 yuan/ton, while that of large granular urea is 1780-1820 yuan/ton. The price in Shaanxi is lowered to 40 yuan, and the mainstream ex-factory price of small and medium-sized particles is about 1780 yuan/ton; The mainstream price of Xianyang market is 1810 yuan/ton. The price in Heilongjiang is lowered to 50 yuan, and the ex-factory price of small particles is about 1900 yuan/ton. The price in Jilin area is stable, and the price of small granular urea is about 1980-2000 yuan/ton. The price in Liaoning is lowered to 90 yuan, and the price of small granular urea is quoted at 1890-1920 yuan/ton. The price in Inner Mongolia is lowered to 70 yuan, and the ex-factory price of small and medium-sized particles is 1650-1920 yuan/ton. The price in Fujian is lowered to 60 yuan, and the delivery price of small granular urea is about 1970 yuan/ton. The price in Guangxi was lowered to 20 yuan, and the self-raised price in the small and medium-sized particle market was 1940-1960 yuan/ton. The price in Guangdong is lowered by 20-40 yuan, and the mainstream price in the small and medium-sized particle market refers to 1930-1980 yuan/ton. The price in Yunnan is stable, and the price of small and medium-sized granular urea is 2100-2280 yuan/ton. The price in Guizhou is lowered by 20-40 yuan, and the ex-factory price of small particles is about 1900-2030 yuan/ton. The price in Sichuan is lowered to 50 yuan, and the mainstream price of small and medium-sized particles is 1900-2030 yuan/ton. The price in Chongqing is lowered to 10 yuan, and the price of medium and small granular urea is about 1950 yuan/ton. The price in Xinjiang is stable, the mainstream of small granular urea in northern Xinjiang is 1700-1760 yuan/ton, and that in southern Xinjiang is 1850-1950 yuan/ton. The price in Gansu is lowered to 20 yuan, and the price of small granular urea is about 2,000 yuan/ton. The price in Ningxia is stable, and the price of small and medium-sized urea is 1750-1770 yuan/ton. # # # Conclusion The shutdown of Shanxi Orchid Technology Venture Co., Ltd. is a microcosm of the enterprise's living conditions under the tightening of environmental protection policies. It shows us that while pursuing economic development, we must pay more attention to environmental protection and ecological balance. For enterprises, only by actively responding to the requirements of national environmental protection policies and strengthening technological innovation and environmental protection investment can they achieve sustainable development; For the government, it is necessary to further improve the environmental protection laws and regulations system and policy support system to provide a strong guarantee for the green transformation of enterprises. Only in this way can we protect the environment and promote economic development to achieve a win-win situation.

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