Fertilizer is a kind of fertilizer made by chemical method to manufacture or mine ore and after processing, also known as inorganic fertilizer. Therefore, the price of fertilizer is linked to the price of commodities, especially minerals, especially coal, natural gas and sulfur. Since last year, the prices of these raw materials have risen sharply because of the large amount of water released by the United States, and so have fertilizers.
Moreover, the rise of this chemical fertilizer will eventually be transmitted to the downstream industrial chain. For example, food prices may rise, feed prices may also rise, and food industry prices may also rise.
There are two kinds of fertilizers in China. One is produced by China. For example, simple fertilizers such as nitrogen fertilizer and phosphorus fertilizer can be produced by China without worrying about the shortage of fertilizers. However, for potash fertilizer, China still depends on imports. For example, 202 1, the import of potash fertilizer in China reached 7.846 million tons. After deducting the export of 536,000 tons, the net import reached 7,365,438+0,000 tons. At present, the import dependence of potash fertilizer in China is about 50%.
The state attaches great importance to commodity prices and often regulates them. Coal has dropped significantly, but it is still at a high level. Recently, the conflict between Russia and Ukraine has pushed up the commodities that have cooled down, and the international ore has soared, triggering a domestic rise. It is estimated that ore prices may fall for some time. In addition, the international fertilizer supply is also tight, and the demand is large and the output is limited, which also aggravates the supply shortage.
The National Development and Reform Commission (NDRC) attaches great importance to the price of chemical fertilizers and has repeatedly regulated it. At the same time, the state also subsidizes farmers by issuing subsidies and other means. However, it is only a matter of time before the price of chemical fertilizer will definitely decrease in the end. However, judging from the current situation, the price will still be lowered in the future.