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Fertilizer companies are facing new confusion this year. Spring plowing is approaching at the beginning of the year, and the fertilizer market has become the focus of the industry again. The overall level of fertilizer prices this year will be better than last year, but corporate profits are unlikely to grow at the same time, and companies will face the embarrassment of only making prices but not profits. This is the overall view of industry insiders on the fertilizer market this year. The 2008 fertilizer export tariff policy has been announced. Although it is more stringent than before, it is better than expected, giving companies a 'reassurance'. Yue Fangmin of the Fertilizer Sales Department of Henan Xinlianxin Chemical Co., Ltd. said in an interview with reporters that according to the announcement of the General Administration of Customs, the export tariff of urea is 30% from January to March this year. However, based on the current price difference between domestic and foreign fertilizers, fertilizer exports are still profitable. Xinlianxin Company has been receiving export orders recently, and the wholesale price of urea to exporters remains above 1,750 yuan/ton. From April to September, although the export tariff on fertilizers is raised to 35%, which has a great inhibitory effect on exports, this is the peak season for domestic fertilizer consumption. With the further increase in the prices of coal, electricity, oil, transportation and gas, as well as the increase in water resources, environmental protection, safety and labor costs, the production costs of enterprises will increase, and it is also difficult for fertilizer prices to adjust. Therefore, this year's fertilizer price level will be overall better than last year. Manager Zhao Wenli of Shaanxi Huashan Chemical Group Sales Company, Manager Ye of the Fertilizer Sales Department of Shandong Hualu Chemical Co., Ltd., Manager Guo Quanpu of Henan Zhongyuan Dahua Group Sales Company, and Hou Yi, deputy director of the Marketing Management Department of Shanxi Fengxi Fertilizer Industry (Group) Co., Ltd. also expressed the same views. However, the rise in fertilizer prices does not mean an increase in corporate profits. Price rises supported by high costs will most likely prevent companies from making much profit. Xue Sansheng, director of marketing, transportation and sales of Shaanxi Weihe Coal Chemical Industry Group Company, reminded. Xue Sansheng said that the marketing research meeting of the China Nitrogen Fertilizer Industry Association has just concluded. At the meeting, according to statistics from the China Nitrogen Fertilizer Industry Association, in 2007, my country's annual urea production capacity increased by 3.27 million tons year-on-year, reaching more than 55 million tons, and the annual output exceeded 53.7 million tons. The market has clearly exceeded demand. As a result, domestic fertilizer prices, especially urea, continued to fall in the first three quarters of 2007. The ex-factory price once fell below 1,400 yuan/ton. 170 companies suffered losses, with losses reaching 1 billion yuan. This year, the domestic production capacity will be increased by at least 4 million tons. It is expected that the urea production capacity will reach at least 61 million tons in 2008, and the urea output will be at least 57 million tons. Even taking into account the 5% annual growth in agricultural fertilizer demand and the growth in industrial urea demand, there will be a domestic surplus of 8 million tons of urea. Assuming that this year's urea export volume still reaches last year's level of 5 million tons, there is still a surplus of more than 3 million tons. Moreover, Announcement No. 74 of the General Administration of Customs has increased export tariffs on fertilizers and levied seasonal export tariffs on monoammonium phosphate for the first time. Its negative impact on fertilizer exports cannot be underestimated. If international fertilizer prices correct slightly later, fertilizer exports will be severely hampered by high tariffs, causing a surge in domestic fertilizer supply and curbing price increases. in addition, * * It is also possible to continue to impose a maximum price limit on fertilizer factory prices this year. Although the China Nitrogen Fertilizer Industry Association has submitted a letter on behalf of 585 nitrogen fertilizer companies across the country, * * The National Development and Reform Commission proposed to increase the ex-factory price of urea from 1,500 yuan/ton to 1,600 yuan/ton, but it is not known whether it will be adopted. Even if this suggestion is adopted and the factory price of urea is allowed to increase by 100 yuan/ton, it will only be able to offset the increase in fertilizer production costs throughout the year, and corporate profits will not increase as a result. Because according to statistics from the China Nitrogen Fertilizer Industry Association, the cost of urea for fertilizer companies across the country has increased to 1,500 to 1,600 yuan/ton in 2007. This year, driven by further increases in coal, electricity, oil, transportation, gas and labor costs, fertilizer production costs will still increase rigidly. It is expected that the cost of urea will increase by 100 to 120 yuan/ton, reaching 1,600 to 1,720 yuan/ton. Therefore, it can be concluded that under the support of high costs, although the annual price level of domestic fertilizers, especially urea, will be better than last year, it will be difficult for fertilizer companies to increase their profits simultaneously, and may even decrease. The relevant person in charge of the China Nitrogen Fertilizer Industry Association also warned fertilizer companies not to be too optimistic about this year's fertilizer market. The person in charge said that fertilizer companies must be mentally prepared for high costs and low profits. especially