The reporter learned from Yunnan Sales Manager of Hubei Yangfeng Co., Ltd. in Yunnan that the local retail price of high-concentration compound fertilizer is 2,000 yuan/ton. Their company's products are sold smoothly, and the company basically has no inventory. The reporter learned from the company's sales personnel specialized in distributing compound fertilizer in Guangxi that the local retail price of high-concentration compound fertilizer exceeded 2,000 yuan/ton. Wang Xiyi, executive vice president of Anhui Liuguo Chemical Co., Ltd., who has conducted market research in several southern provinces, also stated that during the spring plowing this year, the overall supply of phosphorus compound fertilizers is stable.
Although there will be some differences between the supply and demand relations and sales prices in all provinces and regions, it will not be too great. The main reason for the analysis should be that the domestic major phosphate and compound fertilizer producers analyzed the supply and demand situation of this year at the end of last year, and the output was controlled differently. At the same time, most companies also adjusted their marketing plans, basically did not issue new goods to areas that had accumulated too much goods, and ensured a balance between supply and demand in various local markets.
The China Phosphate Fertilizer Industry Association Secretary-General Xiu Xuefeng also believes that during the spring plowing this year, China's supply of phosphorus and compound fertilizers is sufficient. She said that from 2005 statistics, last year's production of phosphorus compound fertilizer increased by 10% over the previous year (the total output exceeded 11 million tons), and the growth of agricultural demand is not so great, so the phosphorus compound fertilizer during the spring plowing this year Supply is relatively more abundant than the previous year. With the expansion of some large-scale enterprises, the production capacity of phosphorus compound fertilizer will increase by 7% to 8% this year.
The supply was sufficient, the farmers benefited, but the production companies did not have much joy. A number of phosphate and compound fertilizer manufacturers stated that at present, compound fertilizer producers are subject to double pressures of rising production costs and lower market prices, and companies are basically at a break-even point. This is contrary to the prediction that everyone had been optimistic.
This year's price will inevitably rise due to the arrival of spring plowing, but the rate of recovery is not large, and regional differences are more obvious. The reporter interviewed numerous Phosphate Compound Fertilizer production and distribution companies and related associations and found that for the current price, not only the wholesale price difference is so great, even the retail price that was relatively easy to estimate the average price before, the reporter also got a very different answer. From 1900 to 2100 yuan. The person concerned believes that if we must give an average price, we can only say that the wholesale price and retail price have risen by RMB 20/ton over the same period of last year. The rise of 20 yuan apparently cannot offset the rise in the prices of raw materials and transportation. Therefore, phosphate and compound fertilizer enterprises can only "stand at the break-even point." The overall performance is: Inventories increase, benefits decline.
Spring plowing requires insurance and the interests of farmers must be protected. Therefore, we cannot expect to win corporate profits by increasing sales prices. The current supply and demand situation in the market has also blocked the room for raising the selling price. However, if the interests of enterprises cannot be guaranteed, then in the long run, it will be detrimental to the fertilizer industry and to the development of agriculture.
Experts in the industry suggest that: First, limit the export of phosphate ore to protect China's increasingly depleted phosphate ore resources, while reducing the production costs of phosphate and compound fertilizer companies. 2. Facing the reality that the industrial layout is irrational, the provinces that have phosphate ore resources must be able to meet the basic needs of raw materials of other similar domestic enterprises before expanding the production capacity of phosphorus and compound fertilizers. Third, the central government should adopt economic measures to encourage the expansion of high-level phosphate fertilizer exports to ease the situation in which domestic supply exceeds demand. Many companies stated that this year's spring ploughing and fertilizer supply is guaranteed. If the industry can't actively respond to the challenges, it will be difficult to cope with the market after the spring plowing this year.
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