Along with a Fall in Demand for Exporting and Domestic Use, the Output of Many Fertilizer Products Declined Year on Year

By CnAgri2018-10-17 16:18:11 Print Recently, domestic N-fertilizer and P-fertilizer prices kept increasing, which is closely related to a decline in fertilizer output. According to latest statistics on latest output, fertilizer output during January and August 2018 totaled 37.0126 million MT (nutrient, same below), down 6.3% from 39.5151 million MT in the same period of last year. Except potash, the output of N-fertilizer, P-fertilizer and fertilizer all declined year on year.  
 (1) N-fertilizer: from January to August, N-fertilizer output totaled 23.9698 million MT, down 8.2% from 26.116 million MT in the same period of last year. Of which urea output reached 16.4881 million MT, down 7.6% from 17.8512 million MT in the same period of last year.
 (2) P-fertilizer: P-fertilizer output from January to August totaled 8.987 million MT, down 5.1% from 9.4659 million MT in the same period of last year. 
 (3) K-fertilizer: K-fertilizer output reached 4.0558 million MT, up 3.1% from 3.9331 million MT in the same period of last year.
Main reasons for a decline in domestic output: a fall in fertilizer export volume; a weak demand.
From January to August, urea exports recorded 0.945 million MT (product, same below), 2.392 million MT less than those in the same period of last year; DAP exports stood at 4.0192 million MT, almost same as those in the same period of 2017 and less than those in the same period of 2016. Besides, whether field crops (corn, paddy and wheat), or cash crops such as fruits and vegetables, planting margins all decrease, and the demand for fertilizer is still weak. 
Winter and spring are the critical periods of environmental examinations, and some fertilizer companies with heavy pollution are forced to suspend production and be closed. Along with aggravating market competition, domestic fertilizer companies would continue to adjust and optimize the industrial structure.