Problems Plaguing the Fertilizer Industry

By CnAgri2013-08-26 11:21:36 Print The Ministry of Industry predicts a fertilizer production of 75.7 million MT (nutrient) in China this year, including 52.9 million MT nitrogen, 16.8 million MT phosphorus and 6 million MT potassium, 8.5%, 7%, 0.1% and 10% more than last year respectively.
 
The ministry predicts that fertilizer industry may be plagued by the following problems:
 
First, the climbing natural gas price will add to the cost of fertilizer production.
 
Second, fertilizer surplus is getting worse in the coming years. Phosphorus capacity utilization was merely 75% in the first half of this year, but some producers keep expanding their capacity. Urea productive capacity is predicted to be more than 90 million MT a year by 2015, but demand may be only 70 million MT.
 
Third, fertilizer exports are hindered by policy. The government practices a low export tax during the slack season of domestic consumption. But international fertilizer suppliers have leant to lower their price in this period to compete with Chinese exporters.

From “China Fertilizer Market Weekly Report”