The Government Released Regulation Policies Frequently to Stabilize the Prices of Fertilizer for Spring Ploughing

By CnAgri2018-03-09 13:27:23 Print Since December 27th, 2017, the Economy and Trade Department of National Development and Reform Commission has held Production-Demand Matching Conference of Coal for Fertilizer. On January 15^th, in order to solve the prominent problem in the links of production and distribution, 12 departments such as the National Development and Reform Commission and the Ministry of Environmental Protection jointly released Notice on Doing a Good Job of Fertilizer Production, Supply and Price Stabilization for Spring Ploughing of 2018. On January 27th, the Economy and Trade Department of National Development and Reform Commission and the Economic Construction of Ministry of Finance published Notice of Invitation for Bids of 2017/2018 Commercial Fertilizer Reserves for Off Season, with the task of 5.5 million MT fertilizer for off-season reserves in order to regulate fertilizer market.       
   
Since October 2017, because of a great increase in materials prices and a relatively low operating rate of fertilizer companies, the prices of N-fertilizer, P-fertilizer, potash and NPK all ascended greatly. In December, 2017, the average ex-factory price of homemade urea, DAP, potassium chloride and compound fertilizer was respectively up 34.0%, 17.7%, 6.7% and 17.1%. If the operating rate of fertilizer producers doesn’t improve obviously in the future, fertilizer will be in a tight supply in some areas during the period of spring ploughing of 2018 and the prices would ascend rapidly. So, the government released related regulation policies to stabilize fertilizer prices during the period of spring ploughing of 2018. 
 
However, along with the release of governmental regulation policies, the supply of fertilizer was predicted to go up, and the bubble prices of several products possibly would go down; wait-and-see atmosphere for winter reserve market would be strengthened and there will be a phenomena of only a price but no market, so key regulation policies and the situation of operating rate should be paid more attention during the period of spring ploughing of 2018.