Domestic fertilizer demand to remain stable or rise slightly this year
On April 14, the "2015 Sulfur and Fertilizer Market Seminar," hosted by the China Sulfuric Acid Industry Association and the China Phosphate and Compound Fertilizer Industry Association, was held in Beijing. More than 150 people attended the meeting, including leaders of relevant national ministries and commissions and representatives of leading enterprises in the industry. The meeting held that during the accelerated period of policy adjustment in our country, the preferential policies enjoyed by the fertilizer industry, such as value-added tax exemption and preferential gas, electricity, and freight rates, have been substantially reduced. Under the influence of the action plan for zero growth in fertilizer application, domestic agricultural fertilizer demand in 2015 will remain stable or increase slightly.
At the same time, the meeting also analyzed the macroeconomic situation and industrial policy; interpreted the action plan for zero growth in fertilizer use and new agricultural development trends; conducted industry analysis and market outlook for international and domestic fertilizers, sulfuric acid, sulfur, and so on; and discussed the development model of agricultural e-commerce, its impact on the industry, and fertilizer marketing innovation under the new normal.
It was learned from the meeting that in 2014, China's apparent consumption of phosphate fertilizer was 13.33Mt, down 5.7% year on year. Net exports of phosphate fertilizer were 3.75Mt, up 59.1% year on year. Sulfuric acid output was 92.5Mt, up 6.9% year on year. Apparent consumption of sulfuric acid was 93.9Mt, up 7.2% year on year, and the amount of acid used for fertilizer accounted for 60.9% of total consumption, up 4.9% year on year. Imports of sulfur were 10.2Mt, down 3% year on year, accounting for 33.4% of world sulfur trade volume. Imports of sulfuric acid were 1.41Mt, up 21.6% year on year.
The meeting analyzed the ammonium phosphate market in 2014. Due to some loosening of tariff policy and the release of international market demand, the ammonium phosphate market from the second half of the year was better than in 2013. However, judging from market performance in 2014, international and domestic prices gradually converged, and compared with previous years, they were still at a low level, and the profitability of enterprises did not improve. Although fertilizer export policy was relaxed in 2015, competition in the international urea and phosphate fertilizer markets intensified, making sustained export growth difficult. For enterprises to turn losses into profits, they must comply with the general trend of transforming the development model and adjusting the structure, and gain vitality through vigorous innovation.