After the Spring Festival, spring plowing will start from south to north throughout the country. Before the Spring Festival, the topic of fertilizer prices was hot.
Surprisingly, the reporter recently obtained two very different fertilizer prices.
One reporter learned from the China Nitrogen Fertilizer Industry Association’s Large and Middle Nitrogen Branch on January 23 that, due to multiple factors such as export restrictions, the current price of urea in Guizhou Province has dropped to around RMB 1,480/tonne (ex-works), which is lower than China's. Quasi-price, the majority of the province's nitrogen-based fertilizer companies have lost money. The Guizhou Nitrogen Fertilizer Industry Association has even made a report requesting the China Nitrogen Fertilizer Industry Association to write a letter to the National Development and Reform Commission calling for an adjustment of the urea export tariff policy and allowing some urea exports to ease the operating strains of local nitrogen fertilizer companies.
Another, according to investigations conducted by the provincial team of Gansu Province, the prices of urea, ammonium bicarbonate, and diammonium in the province have all risen due to scarcity of supplies, with an increase of between 11% and 38%.
A completely different price information was transmitted from one province to the next, which made this year's fertilizer market start to be confusing.
Which actually reflects the true market information?
Guizhou Province has a large area of ​​mountainous areas with less demand for chemical fertilizers, and the scale of nitrogen fertilizer production is relatively small. Chitianhua has a large fertilizer plant. The Guizhou Fertilizer Plant has a medium-sized fertilizer plant and many small chemical fertilizer plants. This little more than one, so that the province's total fertilizer market surplus, the contradiction between supply and demand outstanding. Originally wanted to regulate the price of chemical fertilizers in the province through exports, but the country’s policy of continuing to impose temporary export tariffs has naturally made the fertilizer market in the province worse.
In addition, they also mentioned in the paper to the China Nitrogen Fertilizer Industry Association that because of the tight supply of coal in recent years, the coal price adjustment fund of RMB 50/tonne that should not have been collected has never ceased in all regions (districts) and counties. collection. Taking the Guizhou Fertilizer Plant as an example, in 2003 the coal-to-plant price was 250 yuan/ton, in 2004 it was 365 yuan/ton, in 2005 it was 560 yuan/ton, and in January 2006 it rose to 620 yuan/ton. For the fertilizer companies in the province, one end is that the production costs have risen sharply, and the other end is that the limited supply of the market has failed. As a result, most chemical fertilizer production enterprises are on the verge of losses, not to mention rising prices.
In Gansu Province, the situation changed. First of all, the country's beneficial agricultural policy has become an important factor in the increase of fertilizer prices in the province. This year the province will cancel all agricultural taxes. At the same time, the state's policy of limiting the price of agricultural resources and the minimum price for food protection has not been announced this year. This has undoubtedly played a role in encouraging local farmers to grow grain. Followed by God's help. It has been reported that since the beginning of this year, the lyrics of Gansu Province have been particularly good, especially the snowstorms in the northern areas at the beginning of the year, which has increased the enthusiasm of farmers for growing grain. With the large-scale start of the spring plowing, with the substantial increase in the amount of fertilizers, prices naturally rise. There is also a rise in the price of raw materials and power, which also increases the price of fertilizers. Recently, the topic of fuel tax has once again heated up. Many experts analyzed that the introduction of the fuel tax should be in the first half of this year, the most likely proportion of the introduction of the oil retail price of 30% to 50%. Fertilizer companies in Gansu Province generally eat oil. Once the fuel tax is imposed, production costs will increase. This information also played a 'flicker' effect on fertilizer prices.
In this case, the fertilizer price information reflected in the two provinces should all be true, and both 'price' causes. This proves once again that China's chemical fertilizer market is vast and complex. Fertilizer companies are unevenly distributed and raw materials are different. The peasant brothers have great differences between the north and the south of the grain-growing mentality. Only using a set of policies, a standard, and a price cannot control the market. This again proves that the problem of chemical fertilizers will ultimately be returned to the market, so that the market can give full play to its regulatory function so as to solve the specific problems in various regions.
This year's fertilizer prices are confusing, but it seems that it is a golden opportunity for further reforms. Fertilizer companies, are you ready?
Surprisingly, the reporter recently obtained two very different fertilizer prices.
One reporter learned from the China Nitrogen Fertilizer Industry Association’s Large and Middle Nitrogen Branch on January 23 that, due to multiple factors such as export restrictions, the current price of urea in Guizhou Province has dropped to around RMB 1,480/tonne (ex-works), which is lower than China's. Quasi-price, the majority of the province's nitrogen-based fertilizer companies have lost money. The Guizhou Nitrogen Fertilizer Industry Association has even made a report requesting the China Nitrogen Fertilizer Industry Association to write a letter to the National Development and Reform Commission calling for an adjustment of the urea export tariff policy and allowing some urea exports to ease the operating strains of local nitrogen fertilizer companies.
Another, according to investigations conducted by the provincial team of Gansu Province, the prices of urea, ammonium bicarbonate, and diammonium in the province have all risen due to scarcity of supplies, with an increase of between 11% and 38%.
A completely different price information was transmitted from one province to the next, which made this year's fertilizer market start to be confusing.
Which actually reflects the true market information?
Guizhou Province has a large area of ​​mountainous areas with less demand for chemical fertilizers, and the scale of nitrogen fertilizer production is relatively small. Chitianhua has a large fertilizer plant. The Guizhou Fertilizer Plant has a medium-sized fertilizer plant and many small chemical fertilizer plants. This little more than one, so that the province's total fertilizer market surplus, the contradiction between supply and demand outstanding. Originally wanted to regulate the price of chemical fertilizers in the province through exports, but the country’s policy of continuing to impose temporary export tariffs has naturally made the fertilizer market in the province worse.
In addition, they also mentioned in the paper to the China Nitrogen Fertilizer Industry Association that because of the tight supply of coal in recent years, the coal price adjustment fund of RMB 50/tonne that should not have been collected has never ceased in all regions (districts) and counties. collection. Taking the Guizhou Fertilizer Plant as an example, in 2003 the coal-to-plant price was 250 yuan/ton, in 2004 it was 365 yuan/ton, in 2005 it was 560 yuan/ton, and in January 2006 it rose to 620 yuan/ton. For the fertilizer companies in the province, one end is that the production costs have risen sharply, and the other end is that the limited supply of the market has failed. As a result, most chemical fertilizer production enterprises are on the verge of losses, not to mention rising prices.
In Gansu Province, the situation changed. First of all, the country's beneficial agricultural policy has become an important factor in the increase of fertilizer prices in the province. This year the province will cancel all agricultural taxes. At the same time, the state's policy of limiting the price of agricultural resources and the minimum price for food protection has not been announced this year. This has undoubtedly played a role in encouraging local farmers to grow grain. Followed by God's help. It has been reported that since the beginning of this year, the lyrics of Gansu Province have been particularly good, especially the snowstorms in the northern areas at the beginning of the year, which has increased the enthusiasm of farmers for growing grain. With the large-scale start of the spring plowing, with the substantial increase in the amount of fertilizers, prices naturally rise. There is also a rise in the price of raw materials and power, which also increases the price of fertilizers. Recently, the topic of fuel tax has once again heated up. Many experts analyzed that the introduction of the fuel tax should be in the first half of this year, the most likely proportion of the introduction of the oil retail price of 30% to 50%. Fertilizer companies in Gansu Province generally eat oil. Once the fuel tax is imposed, production costs will increase. This information also played a 'flicker' effect on fertilizer prices.
In this case, the fertilizer price information reflected in the two provinces should all be true, and both 'price' causes. This proves once again that China's chemical fertilizer market is vast and complex. Fertilizer companies are unevenly distributed and raw materials are different. The peasant brothers have great differences between the north and the south of the grain-growing mentality. Only using a set of policies, a standard, and a price cannot control the market. This again proves that the problem of chemical fertilizers will ultimately be returned to the market, so that the market can give full play to its regulatory function so as to solve the specific problems in various regions.
This year's fertilizer prices are confusing, but it seems that it is a golden opportunity for further reforms. Fertilizer companies, are you ready?