Compound fertilizer conference held soon, according to usual practice, which undoubtedly has to convey the fertilizer market is about warming signal, because since then, with manufacturers increasingly clear Dongchu policy, the market will enter a period of winter fat reserves of three months or so, then manufacturers receivable positions downstream distributors, the market in full swing. But the industry's feedback, Dongchu market performance this year or difficult to reach the level of previous years, based on the market outlook bearish expectations, some industry veterans are beginning to join the ranks of appeal export tariff in the past, but the crux of the study or because of its Market supply and demand double pressure.
Official data from 2014 show that China's phosphate fertilizer only a total capacity to 14 years had reached 23.6 million tons (pure P2O5), while consumption is only 12 million tons (pure P2O5), nearly half of the excess amount, diehard . While the industry's increasing awareness of the negative impact of excess capacity brought to the market, local production of ammonium nearly two amplified speed began to slow down. However, according to Treasure Island budget, 2015--2017 years, China MAP total capacity will reach 19.37 million tons, while DAP production capacity will reach 20 million tons. But we can do now is just to ensure that the base is no longer the excessive growth of production capacity in order to eventually achieve the goal of structural adjustment, but it is a long process. Recalling various preferential tariff fertilizer this year, tariffs have been canceled, indulging awaited return to the stage once again fertilizers VAT, it is also shows the government's determination to promote the fertilizer market. It is clear that for the fertilizer business, the implementation of the policy behind it is high additional production costs. Prior to 2008, manufacturers may be able to smoothly pass it to the downstream, eventually to the farmers, but with the increasing number of market selectively and terminal economy, crops gradually shrinking profit margins, which eventually became a manufacturer of wishful thinking. Recently China Nitrogen Fertilizer Industry Association data show that from January to September fertilizer prices have risen over last year, but still below the 2013 average price. Especially after the additional VAT, scale enterprises diammonium t price increased by an average 130 yuan. Eight months before the phosphate fertilizer industry profit of about 1.49 billion yuan, only one will be deductible VAT in the fourth quarter of 1.2 billion yuan or so. Dongchu market close, multi-bearing phosphate fertilizer industry, food price increments reduce a foregone conclusion, the enthusiasm of the downstream equipment fertilizer significantly weaker than in previous years, NPK Dongchu forecast prices than in previous years are different degrees of decline, the industry's only We will pin their hopes on the national policy level, so the "zero tariff proposal fertilizer" a timely, but the formulation of a policy, to weigh the interests of many parties, it is necessary to ensure the healthy development of the industry, but also to protect the safety of agricultural production, not one arbitrary.