Multiple reasons to drive up prices of phosphate fertilizers

With the continuous rise in the prices of phosphate fertilizers, rumors about the suppression of export tax incentives are rampant. Recently, news about the tariff adjustment of fertilizers finally came out. Although the policy has not been formally announced, the latest export tariffs for the chemical fertilizer industry concerned have been determined. It is reported that although the uniform fertilizer tariff as originally expected by the media has not been light season, the forthcoming new chemical fertilizer export policy will shorten the off-season export time.

Multiple reasons to promote phosphate fertilizer prices China is the world's largest producer and consumer of phosphate fertilizers, and the largest importer and consumer of **. Customs statistics show that in the first three quarters of this year, China exported 9.385 million tons of chemical fertilizers, 3.691 million tons of urea exports, an increase of 82.8%; exports of diammonium phosphate 2.79 million tons, an increase of 75%.

According to the latest statistics from the China Phosphate Fertilizer Industry Association, since the second half of the year, international prices have risen rapidly, resulting in current trade prices in China more than doubled from July to $188/ton, and there is still an upward trend. At the same time, the impact of limited electricity production cuts, ammonia prices across the country have continued to rise, most have exceeded 3,000 yuan / ton, resulting in phosphorus compound fertilizer production costs rose.

With the dual stimulation of cost promotion and the recovery of export situation, the price of phosphorus compound fertilizer has shown a recovery. At present, the ex-factory price of 55% powdered monoammonium phosphate has risen to 2350 to 2400 yuan/ton, and individual plants have reached 2,500 yuan/ton. In addition, the prices of urea and potash fertilizers have risen rapidly recently.

Right now, the increase in fertilizer prices has begun to show pressure on the downstream agriculture, and a large number of exports have caused more vigilance from relevant parties.

Recently, the market price of fertilizers in China has continuously increased; and the amount of fertilizer exports has also increased substantially. This has affected China's fertilizer market supply and price stability to some extent. Therefore, in order to protect domestic fertilizer supply and stabilize the market price of domestic chemical fertilizers, China's relevant departments plan to adjust the current tariff policy.

The increase in price of international ** is one of the main reasons for pushing up prices of phosphate fertilizers. On the other hand, power cuts in some parts of the country have also contributed to the increase in prices of phosphate fertilizers. It is reported that due to restrictions on electricity production in some areas in China, the supply of phosphate fertilizer is tight, and the factory price of diammonium hydrogen phosphate in domestic factories began to increase with the recovery of exports, with a margin of about 5%.

According to industry sources, the power shortage led the rise in phosphate fertilizer this year. At the beginning of the year, Yunnan and Guizhou suffered major droughts in the main producing areas of phosphate ore, which led to water shortages and electricity shortages for enterprises. However, under the current trend of energy conservation and emission reduction, power cuts have affected the production of enterprises.