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Compound fertilizer: traditional fertilizer limited new fertilizer benefit

Posted on January 4, 2017 at 5:17 pm Category: Industry News

http://www.agrinoon.com/cn/archives/889

December 23, 2016 tariffs on the New Deal since the release of the main varieties of fertilizer exports to boost trade confidence in the zero-tariff play a certain role, but the winter storage market has not produced a real effect. In particular, fertilizer, although the cost increases, offer up, but Dongchu push is still slow. Some analysts believe that in the capacity, environmental protection and other pressures, the traditional production and marketing of fertilizers is limited, while the national level is also a new product to give more and more policy support, high value-added new fertilizer products to set aside some market space.

By the end of December 2016, winter fertilizer offer fertilizer frequently raised, most companies offer 100 ~ 150 yuan (t price, the same below). The main reason is that manufacturers of low-cost raw material inventory consumption, forced to accept high-priced raw materials. At the same time, the capacity of tension, lack of raw materials to the library, manufacturers operating rate is difficult to upgrade, part of the ratio of compound fertilizer out of stock. However, dealers have doubts about the market outlook, wait and see mood increased, little new turnover, resulting in fertilizer at this stage there is no market price. At present, Hubei 45% sulfur-based compound fertilizer factory reference price 1980 ~ 2160 yuan; Shandong 45% sulfur-based compound fertilizer 1950 ~ 2360 yuan, 45% chlorine-based compound 1800 ~ 2000 yuan; Jiangsu 45% chlorine-based compound fertilizer 1800 ~ 1960 Yuan, 45% sulfur-based compound fertilizer 1950 ~ 2050 yuan.

Traditional fertilizer sales are limited, to the new fertilizer to leave the market space. The national level to guide farmers to scientific fertilization, to promote the reduction of chemical fertilizers is increasing. The latest measure is the increase or decrease in the amount of fertilizer will be incorporated into the official performance appraisal system. On December 22, 2016, the State formulated the evaluation and evaluation system and target system of the target of ecological civilization construction. The formal documents included "Evaluation and Evaluation Method of Ecological Civilization Construction Goal", "Green Development Index System" and "Ecological Civilization Construction Assessment Target System" , The amount of chemical fertilizer per unit area of ??arable land is listed as an important indicator of green development. Jiangsu Huachang Chemical Strategic Development Affairs Minister Li Haofeng that the future will guide farmers to further scientific fertilization, selection of reasonable varieties of fertilizers and fertilization in order to achieve the purpose of saving fertilizer efficiency.

Many new fertilizer companies have turned over the opportunity. On the one hand, the farmers to raise awareness of scientific use of fertilizer; the other hand, the new fertilizer market space continues to expand. With the change of fertilizer consumption habits, forcing the traditional large-scale fertilizer companies to shrink the market area, and to the regional market as the main target of small and medium-sized fertilizer companies to find a greater market space, these enterprises to new functional fertilizer products. The reporter found that many years of silence many small and medium-sized fertilizer business performance in 2016 are significantly increased, especially microbial fertilizer, functional fertilizer, bio-stimulating hormone products such as small fertilizer companies.
According to the 2017 tariff adjustment plan, 2017 organic - inorganic fertilizer import and export will be a separate tax number, no longer impose export tariffs. It is understood that, due to low international trade and other reasons, organic - inorganic fertilizer import and export has no separate tariff lines, but in the "other fertilizers (HS310590)", the implementation of 5% export tariffs. 2017 tariff adjustments, such fertilizers canceled 5% of the export tariffs, and 13% exemption from export VAT. Li Haofeng that this compound fertilizer industry is the biggest positive, but also the release of a signal for the deep processing, export of high value-added fertilizer to open a door. He believes that next year, although the traditional ternary compound fertilizer export tariffs from 30% to 20%, but the actual export is still impossible.

In the short term, if the capacity, environmental pressures can not be relieved, compound fertilizer market is difficult to take the goods better, offer or extend the upward trend. Small and medium-sized enterprises focused on the regional market is expected to occupy a larger market share with high value-added fertilizer.