The second half of the government policies on fertilizers industry stable
Excess supply of domestic fertilizer market year conflict which escalated in exports, so that fertilizer production enterprises in difficulties. Some industry insiders believe that if countries do not have the relevant preferential policies introduced in the second half, fertilizer industry will be great harm; many fertilizer companies are hoping authorities issued some preferential policies to rescue the market, so that fertilizer companies out of this predicament. But recently attended a number of reporters from the business network units in 2009 hosted a market capitalization of China's rural areas? Agricultural International Summit Forum of the Sixth China International Forum on fertilizer market the competent authorities responsible officer that the second half of the Government's fertilizer trade policies remained stable, there will be no major changes.
Who participated in the drafting of the upcoming State Council documents on the fertilizer distribution system at the first of the comrades in the current fertilizer market conditions made the following statement:
Fertilizer industry management from the first half of last year, signs have emerged of the difficulties. Directly to the fuse on April 20 last year from the state of urea, diammonium phosphate exports of high tariffs, so that fertilizer production and operations is entering a difficult period. Seven in August last year, international commodity market in a final climax, all types of enterprises during the "flower drum pass game." Compound fertilizer enterprises domestic large unfortunate as this game is the last "to defend the crown." It is understood the import of phosphatic compound fertilizer industry, a large number of high sulfur, industry producers last year before the four high-priced raw materials and product inventory has caused more than 70 billion book on the hidden losses. Although last year absorbed more than 30 billion yuan, the first five months of this year has digest more than 20 million, but there are more than 20 billion loss to digest losses. N The situation can not be optimistic about the industry. Urea prices have now reached 1400 yuan / ton, lower than the cost of production, forcing some producers had to suspend production of urea. Cause the domestic fertilizer industry in trouble because they are as follows: First, a serious excess capacity. As the fertilizer industry's inertia, production and demand in the short term is difficult to achieve accurate balance. China's domestic chemical fertilizer market in 2007 when the basic production and demand balance; in 2008 through exports to supply and demand problems were alleviated, the basic balance. In the fertilizer market has excess supply situation, fertilizer production in the first half of this year there are nearly 10% growth. Second, exports dropped significantly. During the first half, 45 months, did little to export, in June of urea exports only 1.4 million tons, nearly 100% decrease; DAP export tariffs on exports as the implementation of off-season, although the number has increased, but dropped significantly in the exchange value of nearly 70%. So to ease the domestic supply and demand in the export practices of conflict does not work. To consider stabilizing the domestic market price and the protection of the enthusiasm of farmers will still be the implementation of the existing tariff policy. From the existing policy, in the second half of the exports of chemical fertilizers by the time season high tariffs P Only 1 month, nitrogen is only a half months. Third, high-priced imports of sulfur on the phosphate fertilizer business impact of coal price drop did not meet expectations, resulting in fertilizer production costs and product prices have not dropped sync.
Last year on some business-to-high inventory of raw materials and products to corporate subsidies for fertilizer production requirements, the responsible person like this answer: take into account a number of other industries in which the current environment is more difficult than the chemical fertilizer industry, So, to increase subsidies on fertilizer industry practice is unrealistic. In addition to the fertilizer industry subsidies inconsistent with WTO-related rules. But he stressed that the country can support the company's technological progress, eliminate backward production capacity, to help companies tide over the difficulties encountered by the current approach is feasible, before a precedent. State policy in support of the 26 fertilizer companies, up to 600 tons of nitrogen fertilizer production capacity, nearly 200 tons of phosphate fertilizer production on the transformation of raw materials route. As to whether the introduction of "fertilizer to the countryside" policy, expanding market Sell The problem, authorities believe, as "chemical fertilizers to the countryside," covers a rather scattered, light " Home Appliances The countryside "and" Car The countryside, "the current status of implementation can be difficult operational by the study, for the time being considered. On the fertilizer reserves policy, the current implementation of the off-season commercial reserves policy is to discount loans to state enterprises through the reserve to conduct a fertilizer to encourage policies, practices of the past year, insisted. This year has been carried out one million tons of DAP in the commercial reserves. Next year will be short storage or 10 at the end of September beginning of Tender .
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