Recently, the yellow phosphorus market has soared. Within two months from July, the price of yellow phosphorous rose by 3,000-5,000 yuan/ton. The high price of yellow phosphorus prices not only challenges the downstream companies' psychological endurance, but also tests the ethics of production companies and markets. Recently, the reporter learned from an interview that, in this wave of yellow phosphorus cattle trend, yellow phosphorus production companies in order to obtain greater benefits, frequently appear to destroy single acts, the contract has been set but can not be honored according to the agreed price, quantity. Downstream buyers at a disadvantage show bitterness and the stable operation of production is seriously threatened. As of October 19, according to the reporter's understanding of more than a dozen backbone phosphate chemical companies on the coast of Guangxi, companies have been affected to varying degrees.
A Sino-foreign joint venture food-grade phosphoric acid producer in Guangxi with an annual production capacity of 60,000 tons. Under normal circumstances, the operating rate is about 90%. However, due to the recent yellow-phosphorus price all the way up, its suppliers have used various excuses to destroy singles, and the contract is in name only. It is impossible to achieve timely and full-scale supply. The person in charge of the company told the reporter that it is now the most serious time for the destruction of singles, because the price of yellow phosphorus is still rising, and the supplier's stock-taking phenomenon has intensified. The chaos in the yellow phosphorus market has caused the company's various tasks to become passive. Now the operating rate is only 60%, and production is intermittent and unable to deliver to customers. The supplier’s dishonesty and its reputation are also affected.
The person in charge of a phosphorus chemical company in Fangchenggang, Guangxi, told the reporter that this year's situation has always occurred in the past. "Whenever the yellow phosphorus market is skyrocketing, it is time for the yellow phosphorus production companies to show domineering. Once the situation of supply exceeds demand, the status of the production enterprises will quickly soar. Next, they will be overstocked, raw materials supply There are various reasons such as reduced operating rate, recent transportation restrictions, and non-quoting of quotation to create an atmosphere of price increase. Not only that, but also the rigorous demands on the settlement methods of funds such as prepaid and cash funds have become their privilege,†said the official.
Chief Chemical Analyst Ha Yingting of China Business Network, Phosphorus Chemicals, believes that destroying single-source chemical products will affect the cooperation of phosphorus chemical companies. If the phenomenon of destroying singles occurs repeatedly and increases unabated, it is bound to bring credibility crisis to the entire industry of phosphorus chemical industry. Buyers and sellers cannot cooperate on the premise of mutual trust. Even if the contract has been signed, there is an additional worry about the protection of funds and goods. Both sides only consider the maximization of immediate interests and cannot formulate long-term plans.
Take this year's situation, the yellow phosphorus rose by one day between 1,000 yuan / ton, even if the difference between one day before and one, the difference between a car of yellow phosphorus is also several million, which lured the yellow phosphorus production companies destroy single, also The downstream phosphorus chemical industry has caused great cost pressures. However, Hashitin reminded yellow phosphorus producers that lacked integrity to destroy single risks, and lost one client at a loss. Once the estimate is not in line with the market, the reputation will be paid out together with the profit. Under a dynamic competitive environment, it will generally take three to five years to restore the original competitive advantage and make a comeback. Among them are many who have lost their lives due to bad faith and have gone bankrupt.
Lin Ming, president of the Guangxi Phosphorus Chemical Industry Association, believes that if yellow phosphorus companies want to do long-term, stable business, they must maintain relationships with their old customers. Integrity providers are truly business-minded businesses, and only in this way can they truly capture customers.
The reporter visited a number of phosphorus chemical companies that suffered destruction. All the companies hope that the relevant departments can take some effective measures to create a sound development environment for the company and effectively help the phosphorus chemical companies out of the predicament.
Lin Ming said that if the phosphor chemical industry really wants to achieve a win-win or multi-win situation, all parties need to work together to communicate and build a good development order and trading rules in the industry.
It is reported that at present, the Guangxi Phosphorus Chemical Industry Association is gradually implementing industry rules that are beneficial to the healthy competition of enterprises in the Fangchenggang Phosphorus Chemical Industry Park, which it has led and developed. It is expected that this will serve as a model for guiding the industry towards standardization.
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