China Drying Network News Recently, the Department of Raw Materials of the Ministry of Industry and Information Technology released the report on the economic performance of the fertilizer and pesticide industry in the first half of 2012. The report showed that the profitability of chemical fertilizers and pesticides was relatively good in the first half of the year It is expected that production and demand will grow steadily in the second half of the year.
The report shows: In the first half of the year, the main business income of the fertilizer industry was 380.04 billion yuan, up 19.5% year-on-year; the total profit was 21.29 billion yuan, an increase of 43.6% year-on-year; the sales profit rate was 5.6%, nitrogen fertilizer increased substantially, and phosphorus fertilizer declined slightly. Potash fertilizer was stable. The main business income of pesticides was 111.98 billion yuan, a year-on-year increase of 22.2%; the total profit was 6.76 billion yuan, a year-on-year increase of 24.7%; and the sales profit rate was 6.0%.
In the first half of the year, the total output of chemical fertilizers was 37.051 million tons, which was an increase of 11.9% year-on-year. Among them, nitrogen fertilizer was 24.847 million tons (refined), an increase of 10.0% over the same period; phosphate fertilizer was 9.798 million tons (off P2O5), a year-on-year increase of 18.3%; potash fertilizer was 2.407 million tons (equivalent to K2O), a year-on-year increase of 6.8%. The output of pesticides (including 100%, the same below) was 1.724 million tons, a year-on-year increase of 21.7%. Among them, 395,000 tons were pesticides, down 0.8% year-on-year; fungicides were 73,000 tons, down 11.8% year-on-year; herbicides were 788,000 tons, up 36.4% year-on-year.
In terms of imports and exports, from January to May, the import of chemical fertilizers (refine, the same below) was 2.06 million tons, an increase of 25.7% year-on-year; and the export of chemical fertilizers was 761,000 tons, a year-on-year decrease of 32.4%. The export of pesticides was 33,500 tons, an increase of 19.5% year-on-year.
The report pointed out that the current industry is facing three major problems: First, sulfur, natural gas, phosphate ore and other raw materials prices, while the increase in electricity prices, the cost increase, economic efficiency decline; second, export is blocked, excessive production capacity can not be effectively released, companies Continuous and stable production has been affected; Third, the price of products has fallen sharply, and loss-making enterprises have increased.
The report anticipates that the downward trend in domestic demand for chemical fertilizers will show up in the second half of the year. Coupled with the shortened export window period, the prices of urea and diammonium phosphate will fall, and the oversupply will be significant. However, the rigid demand for chemical fertilizers and pesticides has a positive effect on the domestic market. On the whole, it is expected that the fertilizer and pesticide production and market demand will maintain a steady growth trend in the second half of the year.
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