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IFA said the demand for fertilizer to cover up by the economic crisis
Time:2009-04-07   Read:2229second  
   According to the International Fertilizer Industry Association estimated that in 2008 global fertilizer consumption decreased by 1.5%. Fertilizer demand will slow down recently, but in 2009 a year may rise 2.8 percent overall. Pick-up in the reasons for the demand of chemical fertilizers are the main driving force can be quickly restored, and improve crop yields and total output is the goal pursued by countries all over the world. It can be said that the current economic crisis is the fertilizer to cover up the potential for rapid increase in demand, in fact, if there is no economic crisis, a worldwide shortage of fertilizers is likely to happen again.
    The first half of 2008 even though the prospects for fertilizer demand for prosperity, but in 2008 had changed dramatically. Food supply, as well as very low food stocks for the next five years the demand for chemical fertilizers to provide the foundation rigidity. In anticipation of good sales prospects, by mid-2008, global fertilizer prices of imports and to achieve the highest level in history. However, inflationary pressure is followed by the global food production and improve the reduction of oil consumption, the global prices of agricultural products began to decline.
    In the second half of 2008, the world fertilizer market conditions to deteriorate rapidly. Because of the expected further decline in fertilizer prices, farmers have time to defer the purchase of fertilizer, combined with tension on the international financial situation, the end of the year 2008, fertilizer sales of the general decline in the inventory increase. These factors are the global fertilizer market prosperity are dim.
    Since late 2008, global fertilizer supply to the positive factors include: in May 2008 from the sea-freight start a sharp decline, to reduce transport costs to enable a global trade volume will increase fertilizer. The recent energy prices, especially crude oil prices fell rapidly so that the production of nitrogen fertilizer raw material cost pressures to a certain extent, ease, it is estimated that the recent emergence of energy prices will rise.
     Export tariffs, especially in China's export tariffs on the implementation of new policies to the international fertilizer market has led to great uncertainty. In 2007, China is the world's largest exporter of urea, diammonium and a major supplier of ammonium one. Improve Chinese export tariffs, and adjust several times throughout the year, further exacerbating the global supply tensions in the fourth quarter of 2008 before the Chinese tariff policy has been the focus of the market. By November, when the Chinese fertilizer off-season tariffs, but this time the market has entered a recession.
    Recently, the decline in world market demand for chemical fertilizer, coupled with the economic crisis hit, fertilizer production capacity has been greatly affected. There is some 2008 projects have been postponed, probably in 2009 is very similar. Therefore,may be substantially lower than expected. (Lone I)
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