Entering September, the autumn fertilizer market has come to the final sprint stage. Enterprise shipments and distributors'stores are in full swing. Compared with the atmosphere in the busy season, the compound fertilizer market has obviously fallen a lot at this stage. The so-called replenishment activities in most areas have never appeared, and the market sentiment is more cautious and rigid. Although there is surplus demand in the latter half of the period, there is also a shortage for compound fertilizer.

In recent years, when the domestic compound fertilizer market is about to end, the export market seems to have ushered in the dawn. At the end of last year, the Ministry of Finance promulgated the rules of import and export tariffs for 2019, which clearly indicated that the export tariffs of ternary compound fertilizers of nitrogen, phosphorus and potassium had been adjusted from 100 yuan per ton in 2018 to zero tariffs since the beginning of this year. For this reason, from January to July 2019, China's exports of nitrogen, phosphorus and potassium ternary compound fertilizers totaled 5447,000 tons, an increase of 216.1% over the previous year, and the total amount of exports totaled 172 million US dollars, an increase of 143.5% over the previous year.

First, boost the domestic market. In recent years, the compound fertilizer market has become more and more difficult to do, but also more and more depressed. Enterprises are facing the pressure of cost, goods and start-up. Distributors are trying to survive in the crack. The reason is that besides the lack of downstream demand, the disadvantages derived from the traditional compound fertilizer market for many years hinder its development. On the one hand, the surge in the export quantity of compound fertilizer can drive the domestic compound fertilizer market forward steadily. On the other hand, it can help enterprises find another way to survive. However, the export price is still lower than the import price, so it is not a long-term plan to "trade price for quantity" blindly.

Second, reduce productivity pressure. Obviously, the total production capacity of compound fertilizer in China has already been seriously excessive, and the overall utilization rate is rumored to be less than 40%. The implementation of the abolition of export tariffs at the beginning of this year will not only help alleviate the situation of excess production capacity of domestic compound fertilizer, but also improve the international influence of our compound fertilizer products to a certain extent, which will directly promote domestic compound fertilizer production. The quality of fertilizer products has been improved, especially in the context of increasingly fierce competition in the domestic market. The increase in exports may enhance the brand confidence of enterprises. The international market and the domestic market complement each other and are mutually beneficial.

Finally, export countries are diversified. According to the data of Chinese Customs, China's ternary compound fertilizer has been exported to more than 90 countries and regions since January 2019. The main export destination is Southeast Asia, with Myanmar, Philippines and Vietnam ranking the top three countries in the export volume of compound fertilizer. From the point of view of source, it mainly comes from Yunnan, Fujian and Jiangsu. Hunan and other places. The implementation of the zero tariff policy for fertilizer export in 2019 will also promote the export of compound fertilizer to the countries and regions along the "one belt and one road". The population proportion and the total economic volume of such countries show their huge demand space.

In summary, the expansion of the export market has undoubtedly become one of the good things to be expected in the situation of the continuing weakness of the domestic compound fertilizer market. At present, the export volume of compound fertilizer has indeed increased considerably compared with the same period in previous years. However, the improvement of the domestic compound fertilizer market is not enough by export alone, and it still needs to be in the supply and demand side. Kungfu Online.