Increase in prices of agricultural products pushed up the monthly rate of increase in compound fertilizer DAP over 5%
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Six-country chemical industry, Hubei Yihua, and Yuntianhua are expected to become beneficiaries.
It is understood that major manufacturers have gradually increased the price of diammonium phosphate in October, the general increase of 250 yuan to 300 yuan per ton. QQ Chemical Network data show that only in October, six countries, 57% of the original color of the content of diammonium phosphate as an example, the ex-factory price rose 5.8% from 2,550 yuan per ton rose to 2700 yuan; 61% of the content of particles of diammonium phosphate rose 7.4 %, from 2,700 yuan per ton to 2,900 yuan per ton. In addition, Yuntianhua's ex-factory price for 64% diammonium phosphate rose from 2,850 yuan to 3,000 yuan. The growth trend was no less than the second half of 2007 to the first half of 2008. Some companies even raised the ex-factory price to 3,400 yuan per ton. At present, major companies do not have too much inventory and the supply is tight.
Under the contradiction of supply shortage, China National Agricultural Group judged in its internal meeting that domestic fertilizer prices rose rapidly and will remain high in the short term. On the one hand, the supply of major companies has not been amplified. Under the pressure of energy saving and emission reduction in the earlier period, many companies were under-employed; at present, some manufacturers have entered the maintenance phase and production capacity has not been significantly released. On the other hand, DAP is facing the triple pressure of domestic rigid demand, inventory replacement and export orders, and the demand growth is far greater than the supply.
It was learned from the Phosphate Fertilizer Association that major manufacturers are more willing to accept overseas orders than to meet domestic demand. At present, there is a huge foreign price difference. The same type of diammonium phosphate is priced at US$538/ton, and the domestic price is US$427/ton, which is almost 26% higher than that of China. In addition, the export tax rate dropped to 7% from late October to late December 2010, which also helps companies increase profitability.
Data show that in the first 9 months of this year, China's total exports of diammonium phosphate reached 2.788 million tons, of which 64% of the content of diammonium phosphate was quoted at 590 to 660 US dollars/ton. According to preliminary statistics, in the fourth quarter, China signed a total of 1 million tons of export contracts, including 400,000 tons signed with India and 200,000 tons with Australia.
In order to alleviate the lack of domestic supply, government authorities, the Phosphate Fertilizer Association, and large-scale phosphate fertilizer companies have held seminars hoping that production companies will focus on domestic demand. Wu Xi, chairman of the Phosphate Fertilizer Industry Association, said that he hopes that key enterprises will increase production and supply, so as to ensure domestic supply.