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At present, in addition to overcapacity, the risks of my country's chemical fertilizer industry are new risks of declining demand.
In particular, a series of recent events have made the risk of a decline in the demand for chemical fertilizers come early.
(1) The decline in the demand for chemical fertilizers caused by the low prices of agricultural products.
The low price of agricultural products will lead to abandonment of some land with poor farming conditions, loss of land contractors, difficulties in reproduction, decline in multiple cropping index, and decline in fertilization levels, which will lead to a decline in fertilizer consumption.
(2) The decline in the demand for chemical fertilizers caused by the reduction of planting area in national and local agricultural policies.
On November 2, 2015, the Ministry of Agriculture issued the "Guiding Opinions on the Adjustment of Corn Structure in Sickle Bend Area", striving to stabilize the corn planting area at 100 million mu by 2020, a reduction of more than 50 million mu from the current level; November 3 , The Central Committee of the Communist Party of China issued the "Recommendations on the Formulation of the Thirteenth Five-Year Plan for National Economic and Social Development", which proposed that the exploration of the implementation of a pilot cropland rotation and fallow system will affect the demand for chemical fertilizers.
In particular, a series of recent events have made the risk of a decline in the demand for chemical fertilizers come early.
(1) The decline in the demand for chemical fertilizers caused by the low prices of agricultural products.
The low price of agricultural products will lead to abandonment of some land with poor farming conditions, loss of land contractors, difficulties in reproduction, decline in multiple cropping index, and decline in fertilization levels, which will lead to a decline in fertilizer consumption.
(2) The decline in the demand for chemical fertilizers caused by the reduction of planting area in national and local agricultural policies.
On November 2, 2015, the Ministry of Agriculture issued the "Guiding Opinions on the Adjustment of Corn Structure in Sickle Bend Area", striving to stabilize the corn planting area at 100 million mu by 2020, a reduction of more than 50 million mu from the current level; November 3 , The Central Committee of the Communist Party of China issued the "Recommendations on the Formulation of the Thirteenth Five-Year Plan for National Economic and Social Development", which proposed that the exploration of the implementation of a pilot cropland rotation and fallow system will affect the demand for chemical fertilizers.