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2013 Chinese fertilizer industry downturn causes
Source:China Fertilizer Network   Author:Jean P Consulting   Time:2013-07-14   Read:692second  
Development of agricultural fertilizer industry as an essential industry, basic industry of the national economy. New China was founded, China's chemical fertilizer industry only nitrogen, phosphate, potash and other still blank, in 1949 total annual production is only 06,000 tons of fertilizer, which is close to zero. And the twenty-first century, China's chemical fertilizer industry entered a rapid development period. In 2013 a total of 74.32 million tons annual production of fertilizer. Recalling the first half of the fertilizer market, however, the situation is not optimistic: nitrogen, phosphorus and potassium fertilizer three single mass are in a steady decline in prices, retailers and farmers to buy fertilizer enthusiasm is not high, export situation is grim. 
Champoux consulting industry analyst pointed out that this year, the domestic fertilizer industry downturn the following reasons. 
First of all, this year the domestic fertilizer market downturn elemental main reason is overcapacity. It is understood that the current domestic production of ammonium and diammonium exceeded 50% of the actual demand. According to National Bureau of Statistics, from January to April this year, the cumulative physical domestic urea is about 24 million tons, an increase of nearly 14%. Since this spring, local enterprises to set in Hong Kong as a major export and even less inventory means. In mid-May, Yantai urea had only set in Hong Kong nearly 200 million tons. Meanwhile, the Middle East and other places also rely resources ammonium phosphate and urea production capacity expansion, making the world fertilizer market has become a buyer's market, the price is subject to India so. 
Secondly, the macro level, domestic and international economic environment in the doldrums, the upstream raw material prices for low downstream poor take the goods; land transfer policies promulgated by the state to make a major reshuffle after the fertilizer market uncertainty is more prominent. Domestic sales patterns have also changed, no longer distinct short season, dealers in the off-season is not affected by the purchase price, businesses do not want to advance procurement, mostly as they enter sales. In addition, the pressure on the stock reflects the contradiction between supply and demand are still outstanding, various forms of price adjustment catalyst for a survival of the fittest, ones devour become inevitable.
According to Champoux Consulting released the "2013-2017 China fertilizer industry market analysis and investment strategy research report" shows that recommendations: First, to establish a scientific and reasonable market access and elimination mechanism, promoting the efficient, environmentally friendly, energy-saving direction ; The second is to improve industrial concentration, promote adjustment of industrial structure fertilizers; three is to guide farmers based on soil properties and crop science fertilization, improve fertilizer use efficiency in crops while achieving high-quality, high yield. China's chemical fertilizer industry to improve industrial concentration, optimize product varieties, promoting technological progress in this "troika" to make progress.
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