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    Home > Agriculture News > Fertilizer News > Preferential policies cancel the reshuffle of the fertilizer industry, hard to pick up in the year

    Preferential policies cancel the reshuffle of the fertilizer industry, hard to pick up in the year

    • Last Update: 2022-03-22
    • Source: Internet
    • Author: User
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    In the process of the new normal and supply-side structural reforms, how to study and judge market trends and find room for survival and development in the fierce competition is currently the most concerned issue of the fertilizer industry.
    At the 2016 (Tenth) China Phosphate Compound Fertilizer-Sulfur-Sulfuric Acid Industry Chain Market Situation Seminar, which closed on March 25 in Yichang, more than 100 industry insiders believed that although the chemical fertilizer industry has entered a year of reshuffle and elimination, However, due to the cancellation of a number of preferential policies, the contradiction between supply and demand is still prominent, and the combined effect of factors such as corporate competition and increased environmental pressures, the trend of the fertilizer market this year will not show a significant improvement.
    "From April 20, the preferential electricity price for fertilizer production will be cancelled, resulting in an increase in fertilizer costs by 80 yuan/ton.
    In 2016, the fertilizer industry was included in the bank's credit compression exit industry.
    In principle, loans are continuously being recovered and the number of re-loans by enterprises will be limited.
    At the same time.
    The industry re-levies value-added tax and the preferential policies for freight and gas prices are cancelled one by one.
    Coupled with the country’s implementation of the zero-growth action of chemical fertilizers, the chemical fertilizer market is still difficult, and it is inevitable for companies to reshuffle and eliminate them.
    " Said Meng Weiwei, a senior analyst at Baichuan Information Sulfuric Acid.
    ? China-Arab Fertilizer Co.
    , Ltd.
    Information Center Director Dou Jingping told reporters that this year's compound fertilizer market as a whole is controlled by unfavorable factors such as weak raw material cost and price support.
    Although the pace of structural adjustment of the compound fertilizer industry is accelerating and the product structure is gradually optimized, the substitution effect of superior production capacity on inferior production capacity has not yet appeared, so the situation of overcapacity will continue or even intensify.
    The two-level differentiation of business operations has increased, leading to the acceleration of the integration and concentration of the compound fertilizer industry.
    The compound fertilizer market will not show a significant improvement this year, and there is still room for a small drop in prices.
    ? "The release of urea production capacity this year is the biggest pressure for the nitrogen fertilizer market to rise.
    The oversupply market situation will be the'Damorius sword' for all fertilizer companies.
    The pressure on environmental protection and safety production is gradually increasing and the upgrading of production capacity continues to deepen, and More low-cost urea companies have joined the competition, making the withdrawal of backward production capacity the new normal.
    " said Xiong Linfei, assistant general manager of Hubei Yihua Group Co.
    , Ltd.
    Compound fertilization of urea products and agrochemical services integrating cultivation, sowing, fertilization, spraying, soil testing, etc.
    will gradually become the main profit growth point for urea companies and distributors, and the fertilizer industry will also shift from selling products to selling services .
    ? Regarding the market situation of ammonium phosphate, Zhao Lei, a senior analyst at the Fertilizer Department of CRU International Co.
    , Ltd.
    in the United Kingdom, analyzed that with the massive release of production capacity in the Middle East such as Saudi Arabia and Morocco, the export situation of ammonium phosphate this year is severe.
    Low domestic corn prices and reduced subsidies have reduced farmers' ability to pay for fertilizers and other agricultural products, which may put more pressure on ammonium phosphate exports.
    In the future, the challenge faced by the entire phosphate fertilizer industry is no longer compromised environmental protection, and environmental protection pressure will be presented in administrative penalties and production costs at the same time.
    The former means that the company will reduce production, suspend production or even permanently shut down, while the latter will greatly increase the capital investment and operating costs of the factory.
    ? Sulfur, sulfuric acid and other raw materials are also a major problem that plagues the cost of chemical fertilizers.
    "Sulfur is bearish in the future, and the structure of the sulfuric acid industry is expected to be optimized.
    Some companies will face adjustment pains for a long time, which is expected to last for 3 to 5 years.
    This year, the trend of the sulfuric acid market will not show a significant improvement, mainly due to internal adjustments in the industry, and the atmosphere is biased.
    Weak," Meng Weiwei said.
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