Potash Fertilizers: Strong support, innovative approaches, and balanced openness 　　

Thread Content

　　Potassium is known as the “food of foods” and is an essential strategic resource for ensuring **food security**. “During the 14th Five-Year Plan period, faced with a complex and challenging international environment as well as rising domestic demand for agriculture, China’s potash fertilizer industry made steady progress, achieving systematic accomplishments in various areas such as resource security, capacity expansion, technological innovation, and market regulation. This led to the establishment of a more stable and reliable supply system, laying a solid foundation for ensuring food security in China. 　　Zhou Yue, Secretary-General of the Potassium Salts and Fertilizers Branch of the China Inorganic Salt Industry Association, summarized the achievements made by China’s potassium fertilizer industry during the 14th Five-Year Plan period into six points. The first is a new breakthrough in resource exploration. New deposits equivalent to 15% of the existing reserves have been discovered in the deep areas of the Qaidam Basin in Qinghai and Lop Nur in Xinjiang, while potential potassium resources amounting to as much as 250 million tons have been estimated there ； The exploration efforts carried out in Xuanhan, Sichuan, successfully challenged the traditional belief that soluble potash salts are difficult to find in marine strata, leading to the discovery of China’s first ultra-large-scale marine lithium- and potash-rich brine deposit, marking a historic breakthrough from nothing to something. These advancements provide valuable reserves for the continuity of **potassium resources. By the end of 2023, the economically recoverable reserves of potash salts across the country amounted to 332 million tons (KCl), with an average annual growth rate of 5.8%, thereby strengthening the resource base further. 　　Secondly, the domestic production capacity for potassium fertilizers remains stable, playing a significant \"ballast\" role. Zhou Yue said that during the 14th Five-Year Plan period, China’s potash fertilizer industry will develop a diversified supply system based on stable domestic production to ensure supply, supported by import negotiation mechanisms, and supplemented by resources from abroad. By the end of 2024, China’s domestic production capacity for potassium-based fertilizers stood at 6.541 million tons (K2O), with a production volume of 5.255 million tons. The capacity utilization rates in the two main production regions of Qinghai and Xinjiang remained between 76% and 85%, continuing to play a crucial role as a stabilizing factor. Meanwhile, the scale of potassium fertilizer imports in our country has been steadily increasing, reaching 7.592 million tons (K2O) in 2024, and it has managed to maintain its position as a global \"price hub\". 　　Thirdly, the \"go global\" strategy has borne fruit, with Laos becoming an \"overseas potassium depot\". “Chinese companies have achieved significant success in finding potassium resources abroad, securing several ultra-large-scale potassium mines in Southeast Asia, Africa and other regions, thereby laying a resource foundation for establishing a supply system that combines domestic and international sources. ”Zhou Yue mentioned that by the end of 2024, Chinese companies had established production capacity in Laos capable of producing 3.5 million tons of potassium chloride per year, making it a key overseas supply base for potassium fertilizers in China. Among them, Asia Potash’s production capacity amounts to 2 million tons per year, while that of Lao Kaiyuan exceeds 1.2 million tons per year. In total, over 3 million tons have been repurchased and sent back to China, which has significantly enhanced China’s ability to ensure a stable supply of potash fertilizers from abroad as well as its influence in international forums. 　　Fourthly, new progress has been made in technological innovation and the integration of digital technologies; the key production processes for potash fertilizers have shifted from a rough-to-handling approach to a more refined and sustainable one. On the one hand, digital transformation drives industrial upgrading; companies such as Yanhu Co., Ltd. utilize data-driven intelligent control and industrial Internet platforms to shift production from relying on manual experience to intelligent control. On the other hand, the green manufacturing system continues to improve. SDIC Luojiu took the lead in formulating the first industry standard for green potassium sulfate factories, while Yanhu Co., Ltd. utilizes the circular economy model as well as local renewable energy sources such as wind and solar power to create a closed loop of \"resources – products – recycled resources\", thereby promoting the green and low-carbon transformation of the industry. Zhou Yue said, “These advancements have collectively enhanced China’s self-sufficiency in potash fertilizers, enabling the country’s potash fertilizer technology to shift from following others on the international stage to running side by side with them, and even taking the lead.” ”　　Fifthly, the variety of potassium fertilizers is constantly increasing, and their application areas are becoming more diverse. Zhou Yue pointed out that at present, China’s potash fertilizer industry is developing rapidly in the direction of functionalized products, a more balanced distribution of production capacity, and integration of services. In terms of products, the potassium fertilizer industry has evolved from traditional potassium chloride and potassium sulfate to high-end green varieties such as fully water-soluble potassium sulfate, highly pure potassium nitrate, and bio-kernel fertilizers. Among these, fully water-soluble potassium sulfate with a potassium oxide content of 53.8% holds a market share of over 80% in the domestic market. During the 14th Five-Year Plan period, processed potassium fertilizer products saw increases in both capacity and production; the average annual growth rates for the capacity of processed potassium sulfate, potassium nitrate, and potassium dihydrogen phosphate were 5.8%, 4.8%, and 10.3% respectively, with the industrial layout becoming more aligned with market demands. In terms of services, potash fertilizer companies are actively developing an integrated service system that includes soil testing, scientific fertilization practices, intelligent logistics, and agricultural technical guidance. This approach aims to foster deep integration throughout the industrial chain, thereby contributing to the green and sustainable development of agriculture as well as the revitalization of rural areas. 　　Sixthly, the resilience of the supply chain has improved significantly. “During the 14th Five-Year Plan period, the apparent consumption of potash fertilizer in China grew at an average annual rate of 5.1%, playing a key role in ensuring consecutive years of good grain harvests. In the face of sharp fluctuations in international market prices, **a series of policies aimed at ensuring supply and stabilizing prices were introduced and implemented effectively; through competitive bidding for state reserves, domestic market prices were successfully stabilized. The **Regulations on the Management of Commercial Fertilizer Reserves**, revised and issued in 2024, further strengthened the regulatory mechanism for potassium fertilizer reserves. At the same time, the logistics and inventory management systems have been continuously improved. Relying on routes such as the Qinghai-Tibet Railway, Lanxin Railway, China-Laos Railway, and China-Europe freight trains, an efficient and coordinated domestic and international supply chain network has been established, thereby enhancing the ability to withstand risks. 　　Looking back at the 14th Five-Year Plan period, China’s potash fertilizer industry has delivered an outstanding performance characterized by strong support, innovation, and balanced openness. Looking ahead to the 15th Five-Year Plan, Zhou Yue said that the potash fertilizer industry will continue to focus on the core theme of high-quality development, using technological innovation as a key driving force. It will adopt a development strategy that emphasizes both domestic and international efforts, making use of markets and resources available both at home and abroad. By implementing a strategy of \"stabilizing the domestic market while expanding overseas operations,\" and by utilizing a \"3-3-3\" mechanism that combines domestic production, imports, and overseas sources, the industry aims to enhance its ability to ensure self-sufficiency in potash fertilizers, thereby contributing an indispensable role in safeguarding China’s food security.