Gas prices of chemical fertilizers in China in recent years, the structural adjustment of the curtain opened in January

In order to stabilize the production cost of agriculture, the price of natural gas used in the production of chemical fertilizer has been the national pricing. From November 10th of this year, the national adjustment policies, the full liberalization of fertilizer gas prices, the current policy implementation has nearly January, what is the reaction of the fertilizer market?
At present, China’s fertilizer market is in the traditional off-season, sales decreased. In Meishan Sichuan chemical fertilizer distribution point reporter learned that, as the main varieties of fertilizer urea prices, basically maintained at 1480 yuan per ton up and down, more stable.
Several fertilizer companies in the southwest reporter learned that the current enterprises in order to cope with the cost of the policy landing may bring increased, have lowered this year’s fertilizer production plan.

Some of the chemical fertilizer production enterprises also take this opportunity to adjust the industrial structure, the development of new products with higher value-added technology.
Overcapacity structural adjustment curtain
Because the price of fertilizer, directly determines grain production cost, therefore, over the years, fertilizer gas prices by the national pricing, so, why should the release of fertilizer gas prices?
Reporters learned from the China Nitrogenous Fertilizer Industry Association: in order to adjust the structure, compression capacity, the state in 2010, 2013 and 2015 three times the price of chemical fertilizers were adjusted. After the three price adjustment, fertilizer with gas rose 0.68 yuan per cubic meter,

At present, there is excess capacity in 2015 overall, China’s fertilizer production capacity of urea fertilizer, as the main products for 82 million tons, while the year domestic urea consumption is only 55 million tons, so fertilizer gas market reform will directly promote the structural adjustment of the chemical fertilizer industry.
Industry experts said that such a adjustment is also consistent with the national implementation of the sustainable development strategy.

Academy of Social Sciences researcher Li Guoxiang China: by 2020, Chinese fertilizer to achieve zero growth after 2020, we should realize the reduction of fertilizer, the intention of course is to optimize the production capacity, promote the reform of the supply side.