Particularly worth mentioning is that of chemical fertilizer and pesticide production increased rapidly, eye-catching performance. 1 June, the national fertilizer production 37,051,000 tons, an increase of 11.9%. The urea production was 15.181 million tons, an increase of 10.4%; phosphate fertilizer production was 9.798 million tons, an increase of 18.3%; potash production was 2.407 million tons, an increase of 6.8%. Pesticide output of 1.724 million tons, an increase of 21.7%. 

From the production point of view, agricultural chemicals is a rare bright spot in the industry. Fertilizer manufacturing output of 381.54 billion yuan, an increase of 21.1%; pesticide manufacturing output of 117.82 billion yuan, an increase of 21.3%. 

The first five months, fertilizer production in the top five provinces: Shandong production accounted for 18.97 percent of the country accounted for 15.66% in Hubei, Sichuan accounted for 6.11%, Henan accounted for 5.94%, Shanxi, accounting for 5.69%. The data show that, Shandong, Hubei, Henan, Sichuan, China's grain-producing provinces, fertilizer demand is a big province, fertilizer production in the national ranking anterior reasonable; Shanxi is the largest province of China's coal resources, with the production of chemical fertilizers resource advantages. In addition, the yield ranking of the provinces of Guizhou, Anhui, Xinjiang and Yunnan, Jiangsu. 

According to the analysis, contributed to the direct cause of the good situation of the agricultural product in the first half, China's agriculture stable, increase production, to protect national food security initiatives stimulating fertilizer rigid demand is still there. Countries to further improve the minimum grain purchase price and increase subsidies to agriculture, have further stimulated the enthusiasm of farmers farming to form a strong support of the fertilizer market. 

Many fertilizer manufacturers and dealers generally agreed that the day of the first half of this year better than last year. Shanxi Fengxi Fertilizer Industry Group, the official said, the price of fertilizer raw coal in the first half down, so the cost per ton of urea dropped by 400 yuan per ton, while the highest price of urea sold for 2250 yuan, the effective than the beginning of the year is expected to get better . Season with a fertilizer, urea, almost no inventory, production and how much to sell. Hubei Yihua the first half of urea volume and price go up, the base urea capacity utilization reached full-load sales. Heart to Heart fertilizer in the first half net profit year-on-year soared 2.5 times. In addition, not fertilizer large province of Guangdong, fertilizer demand in fertilizer peak hours also significantly increased, and some are even out of stock phenomenon. 

Some analysts believe that with the increase in fertilizer demand in China and has rich resources of the geographical capacity of increasing fertilizer production in 2012 China is expected to increase in. However, the Federation of petrochemical analysis pointed out that the nitrogen fertilizer industry in the second half running the difficulty may be greatly increased. For four reasons: a slowdown in demand, capacity expansion to accelerate, downward price pressure, international competition. The second half of the nitrogen fertilizer industry outlook is not optimistic. 

The petrochemical Federation expects Overall, the second half of the year, a series of favorable factors will be the main chemical products production and marketing provide an enabling environment. 

Agriculture, the 2012 goal of national food production to ensure that the total output of more than 10 500 billion kilograms, and go all out to fight for stability in the level of 11 000 billion kilograms. Fertilizer, pesticides and other agricultural production materials supply the new demand. 

Industrial sector, the Ministry of the 2012 scale industrial added value will increase by about 11%, the stability of the industrial market demand will greatly promote the growth of petrochemical products. Auto market, according to the China Association of Automobile Manufacturers expects 2012 car sales of about 20 million, an increase of about 8%; car exports is estimated to be 1.05 million to 1.1 million, an increase of 25% to 30%. The auto market rebound in the trend is expected to be the production of tires, synthetic resins, automotive coatings, electronic chemicals, the formation of good. 

The real estate market, with the continued advance of the protection of housing construction in the second half, will greatly promote the market of chemical building materials, paints, soda ash and decoration materials, furniture materials, petrochemical products supply. 

The petrochemical Federation reminded that part of the overcapacity of the industry continues to expand phenomenon should be vigilant. Expansion such as methanol can still go ahead, in 2012 China will have nearly 6 million tons of new methanol plant in operation, when the total capacity is expected to more than 52 million tons. The new capacity will be over four million tons of caustic soda, PVC with production capacity of approximately 2.4 million tons, nearly 400 million tons of soda ash new capacity, which will further increase the market pressure.