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Wary of the fertilizer industry "counter-cyclical"
Source:Chinese fertilizer   Author:He Zhi   Time:2012-09-03   Read:1032second  

 In the chemical industry in the operation of the data released by the National Development and Reform Commission on August 16, you can see the dramatic contrast of the fertilizer industry and other industries: the overall profits of the chemical industry fell by 18.9%, a 15.5% increase in the overall profits of the fertilizer industry. Fertilizer industry from the chemical industry as a whole "counter-cyclical" running surface scenery, but in reality, in particular, need to cause alarm.

        In fact, all of the commodity price changes time has successively, but the overall trend is consistent. Certain counter-cyclical agricultural products, but also to comply with this periodically. As the global financial crisis in 2008, the early global food crisis, food price inflation; Subsequently, the prices of agricultural products With the outbreak of the crisis to follow other commodities plummeted instantly eliminate the global food crisis. This shows that the correlation between the relevance and products of the global economy. Nature can be explained using the concept of the food chain, who can do without; obey unified macro and micro environment to understand social phenomenon, can be used in different commodities.
        "Counter-cyclical" run of the fertilizer industry, in fact, also need industry Note: On the one hand, capital chasing profits, comparative efficiency advantages of the fertilizer industry will attract more capital into the industry, as the urea industry occurred in the past; on the other hand, perhaps the inflection point of the fertilizer market has to, because the industry already exists serious overcapacity, the first half of the year may be just the amount of quarter effect and the bubble effect.
        From recent fertilizer price trend can also verify this: monoammonium phosphate has reached the lowest since a year, but still can not see signs of improvement; urea prices are constantly downlink; the ammonium chloride shaky, also has close all year the lowest; potash has no market value, prices continued downward; only DAP fairly stable.
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