The rising prices of sulfur and potassium fertilizers will inevitably bring about rising production costs, while the farmers’ ability to absorb high-priced fertilizers is still unknown. Therefore, phosphorus and compound fertilizer companies must be prepared for safety. This is a warning issued by Wu Xiyan, Chairman of the China Phosphate Fertilizer Industry Association, at the 8th Phosphorous Compound Fertilizer Production and Marketing Conference held on November 5.
In 2005, China's total output of phosphate fertilizer surpassed that of the United States for the first time in the world. In 2006, the self-sufficiency rate of phosphate fertilizer in China reached 99.8%. From January to September this year, on the basis of satisfying domestic demand, phosphate fertilizers have achieved a net export of 1.288 million tons (refined). However, the phosphorus and compound fertilizer industry is also facing new challenges. In particular, the soaring prices of sulfur, sulfuric acid, and potash have put companies under unprecedented pressure.
According to Wu Xiyan, the price of imported sulphur rose from 79 U.S. dollars at the beginning of the year to 260 to 280 U.S. dollars now. This rise alone will increase the cost of ammonium phosphate companies by around RMB 800/ton. The import of potassium chloride rose from 1,900 yuan/ton at the beginning of the year to now 2,500 yuan/ton. Wu Xiyan said that the irrational rise of these raw materials has brought pressure to the company and it has also caused the entire industry to panic. He also analyzed that the tense situation of sulfur will intensify in the fourth quarter of this year and will continue for two to three years. In terms of potash fertilizer, as the domestic potash fertilizer project is still under construction, there is currently no scale of production. In the next two years, the dependence of Chinese potash fertilizer on imports will remain high, so the tight supply situation will not exist before 2009. Eased.
As production costs rise, companies are also facing changes in the market. According to statistics from the China Phosphate Fertilizer Industry Association, the average ex-factory price of monoammonium phosphate has reached 2,300 yuan/ton, up by 600 yuan/ton from the same period of last year; the average ex-factory price of diammonium phosphate has reached 2,700 yuan/ton, up from the same period of last year. 400 yuan/ton; the average ex-factory price of compound fertilizer reached 2100 yuan/ton, 200~300 yuan/ton higher than the same period of last year. Whether the market can accept such a substantial increase is currently the company's biggest concern.
Tablet Press machine
Zhenxing Drying Equipment Co., Ltd , http://www.cz-dryer.com