Summary: The fertilizer industry
has witnessed frequent corporate developments recently. Market analysis
indicates that raw material prices, including sulfur and ammonium sulfate,
remain stable or are increasing at elevated levels. Additionally, the potassium
fertilizer market is on an upward trajectory. Meanwhile, the anticipated severe
outbreak of crop pests nationwide is expected to impact fertilizer demand.
Winter stockpiling of compound fertilizers poses challenges, yet dealers
maintain an optimistic outlook for the future market. Furthermore, adjustments
have been made to the export tariff regulations for small packaged fertilizers.
Corporate Developments
1. Asia Potash International: In recent days, Asia Potash International has
announced that the Lao government has bestowed high recognition on its
endeavors in the country, pledging substantial support for the sustainable and
high-quality development of its potassium fertilizer operations and industrial
parks. The company intends to leverage Laos' resource endowments to extend its
industrial chain, enhance core competitiveness, and implement comprehensive
cost reduction and efficiency improvement measures.
2. Sinochem Fertilizers: The initial consignment of 216 tons of premium
bio-composite fertilizers from Sinochem Fertilizers has arrived successfully in
Laos, with an additional 810 tons of water-soluble fertilizers poised for
shipment. Adhering strictly to international trade protocols, the company
ensures product quality through close communication with Lao authorities and
partners, garnering substantial customer acclaim.
3. Hubei Yihua: In line with the Yangtze River protection initiative, Hubei
Yihua has proposed to sell its chlor-alkali and CPE plant assets to an
affiliated machinery manufacturing and installation company for RMB 112
million.
Market Analysis
1. Sulfur Prices: As of November 28, 2024, domestic sulfur prices have surged to
the range of RMB 1,500 to RMB 1,600 per ton, marking an increase of over 35%.
Industry insiders anticipate that sulfur prices will remain stable at elevated
levels, albeit with potential declines in specific regions.
2. Ammonium Sulfate Exports: China's ammonium sulfate exports reached an
all-time high in November 2024, recording a month-on-month increase of 4.84%
and a year-on-year jump of 20.28%. Annual exports are poised to surpass 16
million tons.
3. Crop Pest Forecast: Forecasts suggest that the occurrence area of major
crop pests nationwide in 2025 will increase by 6.2% compared to 2024, with
severe pest outbreaks expected on primary grain, oilseed, and vegetable crops.
4. Potassium Fertilizer Market: Since mid-to-late November 2024, international
muriate of potash (MOP) prices have gradually ascended. Global potassium
fertilizer demand is projected to recover robustly in 2025, indicating
significant upside potential in the market. However, domestic potassium
fertilizer production and shipment have been less than ideal, while sulfate of
potash markets remain stable with resilient pricing.
5. Winter Stockpiling of Compound Fertilizers: Recently, the prices of raw
materials such as urea and monoammonium phosphate have declined continuously,
leading to a gradual decrease in compound fertilizer prices. Nevertheless,
dealers hold optimistic views about the compound fertilizer market post-Chinese
New Year.
6. Export Tariff Adjustment for Small Packaged Fertilizers: Effective January 1, 2025,
adjustments have been made to the export tariff regulations for small packaged
fertilizers. Specifically, the description of fertilizer goods has been revised
from "in tablets or similar forms or with a gross weight not exceeding 10
kilograms per package" to "in tablets or similar forms or with a
gross weight not exceeding 10 kilograms per piece."
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