In May 5th twenty-four solar term in the summer, in astronomy, said the beginning of the end of spring, beginning of summer. "Aware the past without remonstrance, newcomers can recover", let us look at the 2016 spring fertilizer market, and combined with the end of April CCTV "Wen Chao world" program broadcast spring fertilizer market survey from three aspects to the interpretation of the specific about 2016 fertilizer spring market.
Adequate supply of spring fertilizer, low market prices
From the news of the all China Federation of supply and marketing cooperatives, during the spring production this year, the national fertilizer supply sufficient to meet farmers with fertilizer demand; and in terms of market prices, fertilizer prices is declined year by year, the market downturn. Considering the aspects of data, the demand for 2016 during the spring of nitrogen, phosphorus and potassium were approximately 2177 million tons (folded pure, the same below), 660 million tons, 540 million tons. Comprehensive measure of output, import and export volume and social inventories and other factors, 2016 during the spring of nitrogen, phosphorus and potassium respectively for bigger than for the sake of 86 million tons, 161 million tons, 31 million tons. The all China Federation of supply and marketing cooperatives Agricultural Bureau Director Li Dianping said, "in recent years, fertilizer prices has been relatively stagnant, in 2015 the annual price of chemical fertilizer has been gradually slip, to 2015 the fourth quarter began to fall sharply, during the spring of this year as a whole and several major chemical fertilizer varieties or in decline in the state". According to the China agricultural means of Production Circulation Association latest detection, up to now the average wholesale price of nitrogenous fertilizer in China for $1473.5 / tons, with the same period in 2015 compared fell 12.5%, urea prices for the lowest price in nearly 10 years.
A variety of factors cause fertilizer prices in the doldrums
The main reason is the excess fertilizer production capacity, the current total nitrogen fertilizer and phosphate fertilizer production capacity of about 101 million 160 thousand tons, while the annual demand is about 66 million tons, the excess capacity of about 35 million tons. In addition since autumn 2015, China's major grain producing areas of corn and wheat prices appeared different degree of decline prices lower directly affect the farmers to grow grain and enthusiasm with fertilizer. Second, the national policy of zero growth in 2020, the national policy makes the farmer's fertilizer habits have changed. Finally, the export situation is not optimistic about the important reasons for the decline in fertilizer prices. As new production capacity, crude oil prices plummeted, the global economic downturn and other factors, international fertilizer prices fell sharply, with urea for example by the end of 2015 international urea prices close to $200 / ton, compared with the beginning of the year fell 100 dollars / ton, in addition by India and Brazil fertilizer demand is fatigued and weak influence, early 2016 has China's fertilizer export volume and export prices compared to the same period are declining significantly.
The new policy guidance, upgrading quality and fertilizer enterprises
At present, the amount of China's fertilizer production and use are first in the world, fertilizer to promote the increase of crop yield play an important role, but too much use of fertilizers also on Soil and water caused adverse effects, the reason for the use of fertilizers large amount of a fundamental reason is that the fertilizer utilization rate is not high. The utilization rate of chemical fertilizer in China is basically between 30% and 33%, and the developed countries can reach about 50%. In this situation, reducing the use of fertilizer, increase the utilization rate of fertilizer has become the trend of the times, the priority. With the introduction of the policy of zero growth of fertilizer, chemical fertilizer enterprises should achieve "one by one reduction", increase is to increase the utilization rate of fertilizer, reduce the pollution to the environment, to achieve the upgrading of products.