The National Bureau of statistics data show, the first 4 months of this year, China's fertilizer production overall decline has appeared for the first time since the statistical data. Chinese chemical newspaper reporters to understand, 2014 fertilizer production continues to increase, the yield is reduced, the main reason is the fertilizer prices fell sharply, enterprise efficiency decline, many enterprises serious losses, reduce the operating rate. This indicates that the overall operation of the fertilizer market is poor, but also to eliminate backward, provides the opportunity for fertilizer industry overcapacity.

According to the latest statistics data, the National Bureau of statistics in April, China produced 5771600 tons of chemical fertilizer (pure volume, the same below), down 4.86%; 1 to April total production of 22063900 tons of chemical fertilizer, drop compared to the same period 1.19%. The output of chemical fertilizer changed before growth into the overall decline.

Sub species, nitrogen fertilizer production fell the most obvious. In April China's nitrogenous fertilizer production 3975300 tons, down 4.94%; 1 to April total production of nitrogenous fertilizer 15628200 tons, down 1.04% yoy. Potassium and phosphorus yield decline. In April, the production of phosphate fertilizer 1234700 tons, down 5.86%; 1 to April total production of phosphate fertilizer 5063600 tons, down 0.82% yoy. In April the total production of potash fertilizer 557400 tons, down 2.72%; 1 to April total production of potash fertilizer 1375600 tons, down 4.54% yoy.

An interview with reporters Chinese Chemical Information Center Director Chen Li to understand, in order to meet the needs of agriculture, began in twentieth Century 70, China's fertilizer industry has entered a rapid development period. China's fertilizer production in 1980 12313200 tons, in 1999 production reached 32063100 tons of chemical fertilizer. Enter after twenty-first Century, because chemical fertilizer plant construction, China's fertilizer production has entered a period of rapid development, China's fertilizer production in 2000 32071700 tons, in 2004 reached 40000000 tons, in 2006 reached 50000000 tons, in 2009 exceeded 60000000 tons, in 2013 reached 70000000 tons, output connected to several steps. From 2000 to 2013 average annual growth rate of 8.79%. And in 2014 continued to increase in fertilizer production is still the case, the output of chemical fertilizer has reduced, this is beautifully.

According to Chen Li analysis, the current situation of the fertilizer industry There are both advantages and disadvantages. The downside is the fertilizer price is too low, resulting in the overall level of profitability of fertilizer industry dropped significantly, 2013 profits of China fertilizer industry amounted to 38500000000 yuan, drops 19.2% compared to the same period, the nitrogen fertilizer industry profit is only 6640000000 yuan, than last year dropped 51.4%; sales profit rate of only 2.31%, the highest in recent years the minimum level of sales profit ratio. In 2014 the fertilizer prices continue to fall, profits industry worse.

But on the positive side, this will greatly speed up the elimination of backward production capacity speed. Fertilizer production is too large has become a serious problem affecting the development of the industry, in the chemical fertilizer prices fell sharply, some high cost, heavy pollution, backward technology of chemical fertilizer enterprises will be eliminated, the rest are advantages in resources, advanced technology, low energy consumption, low cost, safety and environmental protection, competitive enterprises, this is the healthy development of chemical fertilizer industry advantage.