On April 9, the 2018 Sulfur and Fertilizer Market Symposium was held in Beijing. The meeting released data on the operation of China’s phosphorus and compound fertilizer industry in 2017. According to the published data, the total output of phosphate fertilizer in China decreased slightly year-on-year in 2017, and the main revenue and profit of the phosphate and compound fertilizer industry all increased in varying degrees.
According to the data released by China Phosphate Compound Fertilizer Industry Association in 2017, China’s phosphorus and compound fertilizer industry showed that the total output of phosphate fertilizer in China was 16.4077 million tons (P2O5) in 2017, a year-on-year decrease of 1.3%. Among them, the high concentration of phosphate fertilizer output was 15.3544 million tons (P2O5), a year-on-year decrease of 0.6%; the low concentration of phosphorus fertilizer was 1.053 million tons (P2O5), a year-on-year decrease of 10.7%. In 2017, the main revenue of the phosphate and compound fertilizer industry was 479.27 billion yuan, up 5.7% year-on-year; the profit was 18.04 billion yuan, up 33.3% year-on-year; the main business profit margin was 3.8%, up 0.2% year-on-year; of which the profit rate of the phosphate fertilizer industry This was 2.1%, up 1.5 percentage points year-on-year.
Min Xiewei, deputy director of the Department of Foreign Trade of the Ministry of Commerce, pointed out that in the process of continuing to promote supply-side structural reforms, the Chinese fertilizer industry has gradually eased the pressure of overcapacity, promoted the balance between supply and demand of chemical fertilizers, promoted the recovery of the domestic market, and made the industry profitable. Get overall rise. At the same time, with the introduction of the Soil Pollution Prevention Action Plan, the strengthening of safety and environmental protection efforts, and the gradual tightening of resource and environmental policies, at the same time, under the background of the cancellation of many preferential policies in the industry and the rise of raw material prices, the production costs of chemical fertilizers are under pressure. Increasingly, enterprises are still facing a series of difficulties and problems such as a decline in profits, and market development.
Yan Xiewei believes that from the production end, capacity reduction will still be the main task that certain types of fertilizers must face in 2018. With the orderly withdrawal of surplus production capacity, the industry operating rate will gradually increase; from the demand side, the structural contradictions remain. Prominently, weak market conditions in some fertilizer markets will continue, and international market demand and capacity cooperation will become an important channel for resolving domestic production capacity.
According to Li Guang, the general secretary of the China Phosphate Compound Fertilizer Industry Association, the current oversupply of basic fertilizers in the phosphate and compound fertilizer industry and the shortage of high-end fertilizers also exist, and the supply-side structural reforms still need to be accelerated. De-capacity, structural adjustment, and core competitiveness are still major tasks.
Chen Jianhua, vice president of the China Association for Economic Cooperation, analyzed the impact of the evolution of agricultural policies on the fertilizer industry. He said that from the perspective of production, the implementation of zero-growth chemical fertilizers requires that fertilizer production be adapted to market demand, and will focus on the development of high-efficiency, new-type chemical fertilizers in the future. Fertilizer marketing should also be carried out offline and online. At the same time as online sales, we should strengthen the guidance of offline fertilization technology, strengthen cooperation with new-type business entities, create new sales systems and production supply systems, and embark on a transformation road that adapts to the new situation.