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In line with international prices, the sword of Damocles clears the potash fertilizer industry

2009-03-07View Original

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In 2008, China's potash fertilizer market was quite unstable. In mid-April, * * It is proposed to temporarily control the price of potash fertilizer, that is, subsequent price increases of potassium chloride products must be declared or recorded. At that time, the price of potassium chloride was about 3,700 yuan/ton. At the end of April, a contract for imported potash fertilizer was signed in 2008 - 2.2 times the price in 2007. After that, domestic potash fertilizer manufacturers have demanded to be in line with international prices. However, the potash fertilizer price increase has not been approved.   While waiting, domestic potash fertilizer traders have pushed the price of potash fertilizer up to 4,900 yuan/ton. In 2008, the CIF price of imported potash fertilizer plus some port charges was about 5,100 yuan/ton. The selling price of potash fertilizer by domestic traders was basically in line with international standards. In the second half of 2008, affected by the international financial crisis, the prices of many commodities plummeted, but the market price of potash fertilizer was only about 10% to 20% lower.   What’s special about potassium fertilizer is that: China's potash resources are scarce and are only concentrated in a few areas such as Qarhan in Qinghai and Lop Nur in Xinjiang. China's potassium fertilizer self-sufficiency rate is only 30%. The international situation is generally the same. Resources are concentrated in the hands of a few producers. By controlling potash fertilizer production, they can control the excessive decline in potassium fertilizer prices.   Because of this, Salt Lake Potash, the largest domestic potassium chloride manufacturer, has always maintained a high gross profit. According to its annual report, in 2006, the average selling price of potassium chloride was 1,484 yuan/ton (excluding tax), with a gross profit margin of 68%. In 2007, its average selling price of potassium chloride was 1,875 yuan/ton (tax included), with a gross profit margin of 70.08%.   In mid-to-late February 2009, * * Has issued " * * Notice of the National Development and Reform Commission on Strengthening Price Supervision of Potassium Chloride and Compound Fertilizers" and " * * The National Development and Reform Commission issued two notices on Improving Potash Fertilizer Price Management Policies, which decided to implement market adjustments on the ex-factory price of domestic potash fertilizer.   The notice also determines the purchasing price mechanism for imported potash fertilizers, that is, importing companies can * * Based on the cargo benchmark price, the specific port will be formulated within the range of an increase of 3% and no limit on the decrease. * * goods price.   For domestic potash fertilizer manufacturers, the above two notices have brought domestic potash fertilizer prices in line with international prices. The sword of Damocles in the potash fertilizer industry has finally been cleared

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