Looking back at the fertilizer market in the first half of the year, the outlook remains bleak. Prices for nitrogen, phosphorus, and potassium have all been on a downward trend, with both retailers and farmers showing little interest in purchasing. Export volumes are also struggling, adding to the overall sense of stagnation.
One of the key factors behind the sluggish performance of the domestic fertilizer market this year is overcapacity. According to industry reports, the production capacity of diammonium and monoammonium phosphates exceeds actual demand by more than 50%. Data from the National Bureau of Statistics shows that from January to April this year, the total physical output of urea in China reached approximately 24 million tons—an increase of nearly 14% compared to the same period last year. To cope with the surplus, many local producers have turned to exports or even used Jigang (a major shipping company) as a way to clear inventory. By mid-May, Yantai Port alone had accumulated nearly 2 million tons of urea destined for Hong Kong. Meanwhile, countries like those in the Middle East are leveraging their resource advantages to expand production of ammonium phosphate and urea, further saturating the global market and giving India significant pricing power.
On a broader scale, the economic environment—both domestically and internationally—has been in a slump. The prices of raw materials at the upstream end remain low, while downstream demand has not kept pace. Additionally, the government’s land transfer policies have led to increased competition and instability in the fertilizer market. The traditional sales patterns have shifted, and the "light season" is no longer clearly defined. As a result, dealers are less inclined to buy in advance, preferring to wait for sales to pick up. This cautious approach has exacerbated inventory pressures, highlighting the imbalance between supply and demand. Various forms of price adjustments have accelerated the process of natural selection, making it inevitable for larger players to absorb smaller ones.
To move forward, China's chemical fertilizer industry must focus on three key areas: increasing industrial concentration, optimizing product structures, and promoting technological innovation. First, establishing a scientific and rational market access and elimination system will help the industry become more efficient, environmentally friendly, and energy-saving. Second, enhancing industrial concentration will drive structural optimization within the sector. Finally, guiding farmers to scientifically analyze soil and crop conditions can improve the efficiency of fertilizer use while achieving higher crop yields and quality. With these steps, the industry can navigate through current challenges and build a more sustainable future.7-character anchor bolt,7-shaped anchor bolt Embedded parts,L-shaped anchor bolt,Anchor Bolt
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