Fertilizer market in 2017 as a whole better trend, especially in the fourth quarter of fertilizer off-season out of a wave of strong rally. Urea is the strongest species in 2017. As the end of the year is approaching the end of the year, urea prices surged by more than 200 yuan (tonne price, the same below) due to the tight supply of natural gas and the widespread parking of gas urea plants. By the end of December 2017, the mainstream factory quotations in Shandong and Henan have jumped to over 2,000 yuan, setting a new high in nearly four years. Other fertilizer prices compared with the beginning of the year, but also more than the main rise.

Specifically, 2017 fertilizer market presents three major characteristics:

Operating rate is low, the price support. Due to the environmental inspector and other factors, the operating rate of chemical fertilizers decreased in 2017 and the output of chemical fertilizers decreased. According to the statistics of the industry, in the first ten months of 2017, a total of 54.595 million tons of fertilizer (pure and pure) were produced nationwide, down 5% on a year-on-year basis. Among them, the largest decline in nitrogen production, a total of 32,507,000 tons of nitrogen fertilizer (pure), down 8.1%; urea physical output 46,273,000 tons, down 13.4%.

Export decline, the fertilizer difference. Although the export of nitrogenous fertilizers and phosphate fertilizers will both become zero tariffs in 2017, which will be beneficial to exports, the volume of exports has dropped sharply due to the declining competitiveness of Chinese fertilizers in the international market.

According to the national customs statistics, from January to October 2017, China exported a total of 19.5 million tons of chemical fertilizers, down 8.3% from the same period of last year. The total export value was 4.99 billion U.S. dollars, down 6.7% from the same period of last year. Ammonium phosphate, ammonium chloride, ammonium sulfate, heavy calcium, nitrogen and phosphorus fertilizer and other fertilizer exports are better, exports increased by 20% or more, but the sharp decline in urea exports in the first 10 months of only 7.34 million urea exports Ton, a substantial drop of 52% over the same period of last year.

Corporate profits rise. Due to the price hikes, the profitability of enterprises has obviously improved, especially in the nitrogenous fertilizer industry, reversing the losses over the years. According to statistics, from January to September 2017, the main business income of nitrogenous fertilizer industry was 176.49 billion yuan, an increase of 12.9% over the same period of last year; the total industrial profit was 3.8 billion yuan, turning losses into profits as compared with the same period last year. The fertilizer industry in the first 10 months profit up 163.7%, in the petrochemical industry profits in the forefront.