China's Fertilizer Business Needs To Transform

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Since the 21st century, China's rapidly expanding production capacity of nitrogen and phosphate fertilizer has completely changed the situation of dependence on imports. Currently, only potash fertilizer due to constrain of resources still needs large quantities of import. For nitrogen and phosphorus fertilizer, China now is in the critical period of economic transition. How to transit will be a crucial business issue for enterprises in the future.

From the perspective of production capacity, excess capacity has become the industry's main tone. The current nitrogen fertilizer production capacity is adequate for the supply of "the Twelfth Five". But in the meantime the production capacity will add 100 million tons. The production capacity of Phosphate fertilizer plus the project in the next two years are fully able to meet the agricultural needs of the domestic market by 2015.

Research shows that over the past 20 years the excessive use of nitrogen fertilizer has led to the soil pH value of China fell 0.5. While the magnitude of the change if occur naturally needs 1,000 years. Meanwhile, the unscientific use of excessive chemical fertilizers has caused environmental pollution and crop pests and diseases. At present the relevant departments have realized the importance of scientific application of fertilizers.

Affected by the northeast market demand, as well as the sharp increase of the international urea price in last week, the North China's urea market began a new round of sharp increase. In the Northeast and Southern regions of Guangdong and Guangxi, the wholesale market price is more than 2400-2500 yuan / ton. In Hebei and Shandong, the mainstream price is 2230-2280 yuan / ton. And there is still room to rise.

In the international market, with the advent of fertilizer season in Brazil, the price in Brazil urea market has risen to 390 U.S. dollars / ton FOB. In the first four months of this year, Brazil imported 818,000 tons of urea, an increase of 17.5 tons. The price of granular urea in Thailand has now risen to $ 435 / ton.

Experts suggest that for fertilizer enterprises, which are involved in excess capacity and poor efficiency in recent years, need to overcome these difficulties. Some companies have taken actions and have set foot in new business areas, such as coal chemical and phosphorus chemical industry and new materials. This is a new direction of the industry.

Experts of the industry say that China now is in the critical period of economic transition. How to transit will be a crucial business issue for enterprises in the future.


About the Author:
I am Amanda Xia from chinaagriculturenet.com. http://www.chinaagriculturenet.com/ contain a great deal of information about lawn organic fertilizer,palm tree fertilizer, organic fertilizer recipe,and more.



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