Fertilizer exports "increasing and decreasing" Tibetan hidden worry
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According to statistics from Qingdao Customs, in the first half of 2013, 1.125 million tons of fertilizers were exported from Shandong ports, an increase of 47.2% year-on-year, and a value of US$380 million, a year-on-year increase of 20.3%. At first glance, it seems that the situation is good. In fact, the comparison is not difficult to find. In the first half of the year, although the number of Shandong chemical fertilizer exports went up a lot, the unit price has dropped a lot (about 80 US dollars per ton, a decrease of nearly 20%). What is worrying is that the phenomenon of “increasing volume, reducing profits, and reducing profits†has continued to spread, and it deserves the attention of all parties concerned.
On the one hand, domestic physical urea production reached 27.754 million tons in the first five months of 2013, an increase of 2.53 million tons, but due to weather and other reasons, the domestic fertilizer market in 2013 was weaker than in previous years, making the contradiction between domestic supply and demand more prominent, and more manufacturers to send It is hoped that at the time of export, a large amount of urea will be collected in advance. As of early June, the urea stock in the domestic port will be close to 3 million tons.
On the other hand, since June, India’s urea’s largest export market, India, has lowered its urea tender price by another point, from US$331.5/tonne to US$303.33/tonne, far below domestic manufacturers’ expectations. In the face of huge port inventory pressure, exporters may have to passively accept foreign pricing.
The product sells much but does not make money, causing people to think deeply. On the surface, China's fertilizer still lacks the right to speak in the international market. The problem behind this is that the highly polluting and inefficient business model has become a bottleneck restricting the healthy development of China's fertilizer industry. Overcapacity, raw material prices, and rising logistics costs have also made it difficult for fertiliser companies that rely on meager profits to survive.
At present, China is vigorously promoting the transformation and upgrading of the industrial economy. Fertilizer industry should take this opportunity to increase technological transformation, speed up the elimination of backward production capacity, increase product added value, become passive and active, and calmly respond to the ever-changing international market.