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Since the beginning of this year, affected by factors such as rising production costs, price transmission in the international market, and low social inventories, domestic fertilizer prices have risen significantly. The supervisory authorities have taken actions one after another to ensure that the supply and price of chemical fertilizers are basically stable.
National Development and Reform Commission spokesperson Meng Wei said at a press conference on the 17th that the recent price increase of some fertilizer varieties has slowed down significantly, and relevant policies and measures have had a positive effect.
Meng Wei said that the National Development and Reform Commission will strengthen the analysis and judgment of market supply and demand and price situation, comprehensively implement policies, combine the long and short, and actively adopt measures including promoting the reduction of production costs of fertilizer enterprises, supporting enterprises to increase operating rates and output, strengthening reserves and import and export adjustments, and smoothing out chemical fertilizer products and products. Policy measures such as the transportation and distribution of raw and auxiliary materials, maintaining the circulation order of the fertilizer market, and vigorously promoting the reduction of fertilizer application and efficiency.
Since the beginning of the year, prices of agricultural materials have fluctuated greatly under the influence of rising global commodity prices. From early January to late July this year, the price of urea (small pellets) rose from 1929.8 yuan/ton to 2822.5 yuan/ton, an increase of 46.26% during the period. The price of compound fertilizer (potassium sulphate compound fertilizer, nitrogen, phosphorus and potassium content of 45%) rose from 2290.0 yuan/ton to 3097.7 yuan/ton, an increase of 35.27% during the period.
Institutional analysis shows that raw material prices continue to rise due to the global monetary easing policy. Due to the halt of the epidemic in overseas factories, some orders have been transferred to China, leading to the continuous growth of my country's export trade and strong market demand. At present, the start of urea production and production are both at a relatively high position. Factors such as low inventory and cost support have led to a tight fundamental supply and demand pattern, which in turn has increased the price of fertilizers.
Meng Wei introduced that the National Development and Reform Commission has adopted a series of control measures to ensure the basic stability of domestic fertilizer supply and prices. During the spring ploughing period, some national chemical fertilizer commercial reserves were organized for three consecutive months. The price increase of nitrogen fertilizer, phosphate fertilizer and compound fertilizer in the country has been significantly reduced. In some months, prices in some major grain-growing provinces have dropped significantly.
In addition, the National Development and Reform Commission has promoted the implementation of a one-off subsidy of 20 billion yuan for actual grain farmers as soon as possible to alleviate the impact of the increase in grain growing expenditure caused by the increase in the cost of agricultural materials. The interview reminded key fertilizer companies to cooperate with relevant departments to strengthen the supervision of the fertilizer market and to file investigations into fertilizer companies suspected of driving up prices. Encourage relevant industry associations to issue initiatives, calling on companies to increase production and supply and stabilize market prices.
On July 30, according to the official website of the National Development and Reform Commission, the National Development and Reform Commission held a meeting to remind some key fertilizer companies and related industry associations to participate. The meeting required key fertilizer companies to increase their positions, actively fulfill their social responsibilities, and give full play to their role of demonstration and example; they must operate in an orderly manner in accordance with laws and regulations, and must not hoard, drive up prices, or fabricate or spread information about price increases. Participating companies stated that they will do their best to organize production and operation, and will not arrange fertilizer exports for the time being to ensure the supply of the domestic fertilizer market.
Subsequently, on August 4, the State Administration of Market Supervision stated that in response to the problem of hype and rapid price increases in the fertilizer market, the State Administration of Market Supervision recently filed an investigation into the production and distribution companies suspected of driving up the prices of potash fertilizers and other fertilizers based on the clues of the report. The General Administration of Market Supervision stated that it will continue to pay close attention to the order of fertilizer prices, increase supervision and law enforcement, and severely investigate and punish illegal activities such as hoarding, driving up prices, and colluding to raise prices.
On August 7th, in response to the rising prices of domestic nitrogen fertilizers, phosphate fertilizers, potash fertilizers and other major chemical fertilizers this year, China Agricultural Production Material Circulation Association, China Nitrogen Fertilizer Industry Association, China Phosphorus and Compound Fertilizer Industry Association, and China Inorganic Salt Industry Association Potash and Potassium Fertilizer Industry The branch and the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters issued a joint initiative: to increase the production and supply of the domestic fertilizer market and stabilize the market price.
