Spring fertilizer demand that determines the degree of market economy
Time:2010-03-03 Read:1764second
2010 Central's "Document No." "on the increasing intensity of urban and rural development will further consolidate the basis of agriculture and rural development in a number of Opinions" three agricultural inputs to "continue to increase the total, the ratio steadily increased," while expanding the scale and scope of agricultural subsidies . "Positive development of new fertilizer ... ... optimize fertilizer structure, and accelerate the development of suitable for different soil characteristics of different crops specialty fertilizer, slow-release fertilizer."
In early 2009, "issued on the reform of fertilizer price formation mechanism" also pointed out that, considering the chemical fertilizers, diesel oil and other agricultural prices and food price changes, returns from growing grain to farmers the impact of the implementation of agricultural price increases with the increase in agricultural subsidies and a comprehensive raising the minimum grain purchase price, the provisional price for linking purchasing and storage mechanisms, a comprehensive agricultural subsidies, only to rise to ensure that the farmers returns from growing grain prices not because of agricultural decline.
Farmers income level determine its ability to purchase agricultural products, but also a direct impact on the enthusiasm of the farmers fertilizer. From our perspective the cost of manufacturing the three major food crops, chemical fertilizers, pesticides, accounting for close to 30%, machinery and power accounting for nearly 20%. In recent years, the national agricultural policies and strong agricultural benefits world food prices under the influence of income level of China's farmers increased every year. Increase in the level of income of the farmers to improve farmers ability to pay, help to stabilize the amount of chemical fertilizer.
Season exports, decided to spring fertilizer needs of the market economy
March to May every year is China's spring season, during spring, the northern region is the largest one-year using fertilizer when the annual spring fertilizer accounts for about 70% of the amount of fertilizer.
China since December 1, 2008 since introduction of the new export tariffs on fertilizer policy, nitrogen fertilizer, phosphate fertilizer export duty of 110% of the season, off-season export tariffs can be as low as 10%. As the current domestic and international markets, nitrogen and phosphorus the small price difference, the domestic exports of nitrogen and phosphorus basically difficult to achieve, and therefore needs 3-5 month spring season, domestic demand will mainly determine changes in fertilizer prices and industry boom degrees.
Recent Industry Watch: nitrogen and phosphorus fertilizer prices significantly Support
Domestic urea prices steady. The domestic price of urea has remained relatively steady for nearly two months of 1800 Yuan / tons. Since the fourth quarter from 2009, nitrogen fertilizer production costs, gas cut-off limit of the first companies focused on production, coal production of the first companies affected by the power load drop, output was severely affected; However, with the weather gets warmer, natural gas supply shortage been reduced, have re-produced gas from urea, urea, an increase in the supply makes the price of urea sideways. Nitrogen fertilizer market supply during the spring will be the focus of attention.
Diammonium phosphate rose significantly. Domestic DAP prices in February rose to 2,700 yuan / ton, mainly due to higher prices of raw materials to promote phosphorus and sulfur, as well as the international prices of diammonium driven. India's subsidy policy on international diammonium market support. In addition, the United States over the past five years diammonium inventory levels are still low 45 percent on average, expected the international diammonium prices continue to soar. However, with the peak season for the export tariff, the domestic price of diammonium prices pushed up by the international inertia will be weakened, afternoon or may be relatively limited.
Potash fertilizer market to start looking forward to spring. Of domestic potash fertilizer prices in February rose slightly to 2700 yuan / tons. From the latter part of fertilizer demand perspective, the majority of small businesses potash reserves, while the fertilizer in the market there are also gaps in the Spring Festival, and concentrating more likely to drive production, which will ignite a great enthusiasm for potash fertilizer procurement , the market demand may rebound. (Chi-mei)