China Fertilizer Market Review & Outlook

By Author: Sumitra D. Gharat
Total Articles: 1486
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Bharatbook.com is proud to announce the new report China Fertilizer Market Review & Outlook (http://www.bharatbook.com/detail.asp?id=72288).

Background: China has shaken off macro-economy depression and set foot on a fast growing road since 2003. In the meantime, under the conditions of shortage of supply central government has adopted a set of agriculture-oriented policies in order to stimulate the recovery of grain production, for example, agricultural subsidy expenditure, agricultural tax abolishment, etc. Therefore, fertilizer production, demand and investment in China witnessed a continuous growth influenced with the two favorable factors.

However, under the conditions of shortage of domestic and international energy sources plus surging prices of mineral resources, a set of macro-adjustment policies are adopted to control a highly liquid currency circulation and prevent inflation; at the same time, price and revenue policies are carried out to restrain the excessive consumption of energy sources and mineral resources and large amount of investment into high energy consumption industries. Negative ...
... effects in fertilizer industry have increased with the implementation of macro-economy policies, and they showed more distinctive entered 2006-2007 as followed:

In 2007, domestic supply and demand are blooming in fertilizer market with strong demand worldwide. However, fertilizer material cost and industrial powder generally marked up, suppressing the rise of fertilizer production cost and price, plus export limit, so profit margin in fertilizer industry decreased dramatically.

From the view of new policies adopted by central government and policy guide in the Central Economy Working Conference in November and December, 2007, policies will focus on the following points next year. It will deepen the reform of fiscal revenue, price and investment system to promote the change of economy development; macro-adjustment will be carried out on the principle of quantity control, price stabilization, structure adjustment and balance promotion; the most important task of macro-adjustment is to prevent excessive economy growth and avoid dramatic price inflation; forceful measures will be adopted to restrain the excessive price growth and enhance the production of basic necessities, such as grains, edible vegetable oil, meat products, etc; currency polices will play a more important role in macro-economy to restrain total amount and speed of currency credit; stable fiscal policies and tight currency polices will be implemented.

Fertilizer industry in 2008 will be restrained by cost growth and price limit under the influence of the mentioned macro policies. In the meantime, the implementation time of fertilizer production preferential policy abolishment brought forward in 2006 is still not settled, further deepening the uncertainty of Chinese fertilizer market. Therefore, it is more important to estimate and grasp precisely the trend of domestic fertilizer production and market.

Combined with national economy development and policy reform, It will research deeply in 2008 Chinese fertilizer market trend on the basis of an overall analysis and review in Chinese fertilizer market policies and trend in 2007 as to make a specific estimate in Chinese future fertilizer market, which will be a strategic reference for insiders domestically and internationally focusing on fertilizer market in China.

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