Domestic demand strongly drives the fertilizer industry and is expected to get out of the woods

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The world's largest agrochemicals exhibition - the 10th China International Agricultural Chemicals and Crop Protection Exhibition was held in Shanghai today. As an authoritative weather vane of industry trends, one of the major messages revealed at this exhibition is that the fertilizer and pesticide industry is coming out of the downturn at the end of last year, with domestic demand playing an increasingly stronger role. Come and watch the reporter’s live interview. Due to the cancellation of the Agricultural Chemicals Fair in Glasgow, UK, this China International Agrichemicals and Crop Protection Exhibition will undoubtedly become the largest remaining agricultural chemicals exhibition in the world. Due to the impact of the international financial crisis, the domestic fertilizer and pesticide industry, which has always been highly export-oriented, has been in a downturn since the end of last year. According to data from the China Petroleum and Chemical Industry Association, more than 40 urea companies and more than 100 ammonium bicarbonate companies had ceased production at the end of 2008. ； The operating rate of phosphate fertilizer companies is less than 50%. The plunge in international sulfur market prices has caused losses of nearly 15.6 billion yuan to phosphate fertilizer companies. However, after about four months of pain, fertilizer and pesticide companies seemed to be turning a corner at this exhibition. Weiyuan Biochemical is not the only company that has personal feelings about the market warming. At the booth of another listed company, Huaxing Chemical, the reporter got the same information. The relevant person in charge of Huaxing Chemical said that due to the impact of the international financial crisis, the prices of fertilizers and pesticides have dropped compared to last year, but the characteristics of rigid market demand are very obvious, so the export volume of the company's products is expected to remain unchanged this year. Relevant people from Weiyuan Biochemical believe that compared with other export industries, the fertilizer and pesticide industry is more resistant to risks. Although the international economy has seriously shrunk, major agricultural countries such as the United States and South America have provided greater support and investment in agriculture. Regarding the overall recovery of the industry, all fertilizer and pesticide companies agree that in addition to seasonal factors such as spring plowing, rising demand in the domestic market is becoming an important support point for profit growth. “"Looking inward" is the only choice for almost all fertilizer and pesticide companies. Regarding the signs of recovery in the fertilizer and pesticide industry, industry insiders said that it cannot be said that "winter" is completely over yet, and it is expected that there will still be a decline in August and September. However, due to the fact that the chemical industry is in the middle and upper reaches of the industrial chain, the fourth quarter of last year may have been the low point of the industry, and the overall trend of the industry gradually emerging from the predicament has been relatively obvious.