The high prices of agricultural products led the international fertilizer prices
According to the International Fertilizer Industry Association, said that the current prices of agricultural products continued to remain high, driven by global agricultural producers to increase investment in farming, will drive the increasing demand for fertilizer. 2011-12 crop year is expected to reach 178.3 million tons the world's fertilizer consumption, a record high, up 3%, lower than the 2010-11 crop year growth rate of 6.2%. Despite the recent international market prices for some agricultural products have declined, but by historical standards is still in a very high level. Such as peak current wheat prices 30% lower than a year ago, but still higher than the average of the past five years, above 80%. Agricultural prices may be driven by economic prosperity of agriculture, the U.S. Department of Agriculture farm income in 2011 will be the first U.S. $ 100 billion, agriculture net value added created by the U.S. economy will reach the highest level since 1974. As the strong fundamentals of agriculture, the world's leading fertilizer manufacturers have confidence in future demand.
China: the fertilizer industry profits in 2011 rose significantly
China Petroleum and Chemical Industry Association to provide the data, January to September 2011, a total profit of the national fertilizer industry, 30.297 billion yuan, an increase of 109.9%. Among them, nitrogen profit of 9.356 billion yuan, up 350.3 percent; phosphorus profit of 2.842 billion yuan, an increase of 115.9%; potash profit of 5.474 billion yuan, up 53.6%; compound profit of 9.232 billion yuan, up 61.6% . Substantial increase in profitability is mainly due to price increases. Such as the 2011 urea, potassium chloride (60%) of the national average price of the factory was 2065 yuan / ton, 3050 yuan / ton, up 24.8% year on year, respectively, 22.9%.
Recent domestic urea, diammonium phosphate prices in the small adjustment continued to show a rising trend
Overall, the domestic fertilizer market since 2011, prices were rising trend during the year to reach the highest point in September, October, began to fall into the recent urea, diammonium phosphate ex-factory prices of different magnitudes occur, potassium chloride prices were relatively stable. As of mid-November, Shandong province ex-factory price of urea dropped to 1950 yuan / ton, down in early October about 260 yuan / ton. As the southern parts of the fertilizer demand, coupled with price increases and some domestic distributors and purchase a small amount of fertilizer production enterprises, the market prices began to rebound, the present ex-factory in Shandong Province has risen to 2,100 yuan / ton. In the DAP: the end of October, Yunnan, Hubei, one after another station northeast of DAP manufacturers cut prices to 3100 yuan / ton, but the enthusiasm of dealers stocking is still not high, and then ex-factory price was slightly rising trend, as of now, Hubei, Yunnan, Guizhou, northeast station manufacturer price has risen to 3300-3400 yuan / ton.
In addition, the Spring Festival, began in early spring, farmers' demand for pesticides and fertilizers will be a substantial increase in fertilizer prices in the international context, the domestic fertilizer prices are expected to follow, so pesticides and fertilizers is expected to usher in shares or opportunity. In individual stocks, proposes a focus on six chemicals, Huayang Technology, Great Stock, Mei Fung Sichuan, Hubei Yihua and so on. (Including blue)