Himfr Reports Anthracite is still the main raw material of fertilizer

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According to the China Association of Anthracite Coal Marketing Professional Committee of Statistics, by 2008, the national average yield of anthracite block was 16%. With the geological conditions and mining changes in the way, smoke-free block rate will gradually decline. 2009, 502.8 million tons of anthracite production, production rate of certain blocks of up to 16% less than the proportion of incremental finite lump of anthracite.

1 November 2009, the national growth rate of ammonia production was 3.56%, N 12.83% growth rate, growth rate is 10.14% of urea. Growth rate lower than the ammonia nitrogen, urea, growth rate is mainly due to a prolonged slump in 2009, methanol prices have turned a large part of the production capacity of methanol and urea nitrogen. Therefore, smoke-free lump anthracite in particular the growth rate is far lower than the rate of urea nitrogen and difficult to meet the demand.

2009 natural gas as raw materials of synthetic ammonia production declined. It can be concluded that: the new ammonia and nitrogen fertilizer, urea, a large part of its raw materials are used in other coal or anthracite coal. But as I understand, adopt other coal gas in the Texaco, Shell, and other multi-nozzle gas furnace does not have a wide range of applications, therefore, made of anthracite coal to gas companies for it has become more.

On the 2010 ~ 2012
Anthracite market determine
Anthracite market overall in 2010 showed total supply and demand will be moderate growth, the basic balance between supply and demand situation and prices have room to rise. The reason why the judge made, mainly based on the following three aspects:
The first, from the production perspective, anthracite production will remain low growth. In recent years, the total production of anthracite increasing trend year by year since 2005 4 years increased by 30%, but over the years the total amount of anthracite coal country only 17% ~ 18%, the relative proportion of total production high. Growth rate, from nearly 2078 the growth rate stable at 8%, close to or sometimes slightly lower than the overall increase in coal production, the average annual increase of about 20 million tons or so.

From new capacity point of view, the last two years much anthracite mine new in 2009, put into operation a Temple home Yangquan Coal Mine, and several other large-scale mines, such as Seven Mile Creek mine in Yangquan mining area, parking in mine, Jincheng mining area East large mines, Zheng Colliery, Hu bottom mine, some not yet approved, and some start this year, to form a production capacity of at least 3 to 4 years after 2015 will form a production capacity. Combined with the aforesaid, resource integration yield little effect on the anthracite, therefore, generally speaking, the country will maintain a stable growth rate of anthracite, the last two years the increment limited.

Second, the relatively stable demand for anthracite. Anthracite has broad applicability, electricity, metallurgy, chemicals, building materials and civil and others have universal application. According to the data in recent years, consumption of which in the anthracite, which accounted for 36% of the power industry, chemical industry and cement industry, 20% each, the steel industry accounted for 7%.

In general, 2010 ~ 2012 anthracite market will show the following characteristics: 1. The total amount of anthracite coal for electric power industry will increase, 2012 will be about 200 million tons; 2. Metallurgical industry show in 2009 declined, 2010 years tends to increase; 3. coal coal chemical industry will be relatively stable and showed a rising trend, China's coal chemical industry is still in strong development momentum, the demand for anthracite will increase. Therefore, the excess pressure in a relatively small anthracite.

Third, import and export point of view, the total anthracite small, not significant. In recent years, the basic stability of the Chinese anthracite exports 500 million tonnes, while imports increased year by year. According to Customs statistics, the year 2009 is expected to import 34 million anthracite ~ 35 million tons. But generally speaking, compared to the national import and export volume of anthracite anthracite high proportion of total production, was less affected.

Multiple factors
Integration of coal resources
From the current situation, integration of coal resources in Shanxi is still in its infancy, the industry believes that in Shanxi coal mine capacity integrated release will be the following factors:
First, mine has not been completed integration of asset valuation, asset transfer and so on. As the coal mine owners on the transfer of resistance to higher prices in many parts of the work of actually promoting the stalemate. Second, integration of Mine Extension, its production capacity will take some time. If an annual output of 300,000 tons of mine to be 900,000 tons Extension mine, at least 2 years. Therefore, the short-term integration of the coal mine will not create a great delta. Third, integration of mine most of mine from 3 to 5 small integration come to form the scale of production planning is not optimistic. Integration of the majority of small coal mines before the existence of Unchecked Excavation of the situation, the mineral resources to be integrated fragmented, according to the implementation of reconstruction and extension plan is not as simple as imagined, and some would be difficult to achieve the level of planning capacity. Therefore, the government announced integration of coal resources in Shanxi province's total production capacity may be planning to play a number of discounts. This point of view, integration of the mine in Shanxi incremental capacity will be limited.

Shanxi coal industry in 2010 and Major measures include: encouraging the integration of coal production and marketing business enterprises; to maintain the current centralized management of railway transportation and sale of coal plan basically unchanged; to keep prices relatively stable, strengthening quality management.

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