On December 2nd, the Potassium Salt (Fertilizer) Industry Branch of the China Inorganic Salt Industry Association held a working meeting of the 2010 President in Haikou. The meeting discussed the “Twelfth Five-Year†development plan for the Chinese potash fertilizer industry. Making full use of domestic and foreign markets and two kinds of resources to ensure China's food security and national economic development needs will be the industry's “12th Five-Year†major task. Through the efforts of the entire industry, the self-supply rate of potash fertilizer in China can be doubled during the "Twelfth Five-Year Plan" period.
According to the analysis of the current status of agricultural fertilizer use and market demand in China, potash fertilizer is still a shortage of chemical fertilizers in the coming period. It is expected that during the "12th Five-Year Plan" period, the annual consumption of potash fertilizer in China will be 8 million to 10 million tons in kind. In terms of domestic supply, Qinghai Salt Lake Group's production capacity will grow from the current annual output of 2 million tons to 3.5 million tons in physical quantities, and the capacity of other potash fertilizer plants in Qinghai will exceed 2 million tons. The production capacity of potassium sulphate from Lop Nur Potash Company in Xinjiang will be increased from the current annual output of 1.4 million tons to 3 million tons in kind. In addition, Yunnan's solid potassium mining, seawater extraction of potassium and insoluble potassium resources, production capacity of overseas potash fertilizer enterprises are put into production. It is expected that during the “Twelfth Five-Year Plan†period, the annual production capacity of potassium fertilizer in China will reach around 10 million tons of physical quantity, and the annual output will be based on the market. The situation remained at 6 million to 8 million tons in kind.
Therefore, the self-supply rate of potash fertilizer in China is expected to increase from about 40% in the “Eleventh Five-Year Plan†period to about 80%, which will greatly reduce the risks of international potash resource monopoly to China’s agricultural production.
It was learned from the meeting that negotiations on potash fertilizer importation had already started next year, and the foreign offer was very high at present. The Chinese side argued that it was in a stalemate game. Because there is enough potash fertilizer, there are still more than 4 million tons of stocks in the country. Therefore, the price of imported potash fertilizer that China insists is lower than that of India. With the substantial increase in the self-supply rate of potash fertilizer in China during the “12th Five-Year Plan†period, the favorable weight of China’s negotiations will continue to increase, which will effectively counterbalance the price monopoly of potash fertilizer in foreign countries.
According to the analysis of the current status of agricultural fertilizer use and market demand in China, potash fertilizer is still a shortage of chemical fertilizers in the coming period. It is expected that during the "12th Five-Year Plan" period, the annual consumption of potash fertilizer in China will be 8 million to 10 million tons in kind. In terms of domestic supply, Qinghai Salt Lake Group's production capacity will grow from the current annual output of 2 million tons to 3.5 million tons in physical quantities, and the capacity of other potash fertilizer plants in Qinghai will exceed 2 million tons. The production capacity of potassium sulphate from Lop Nur Potash Company in Xinjiang will be increased from the current annual output of 1.4 million tons to 3 million tons in kind. In addition, Yunnan's solid potassium mining, seawater extraction of potassium and insoluble potassium resources, production capacity of overseas potash fertilizer enterprises are put into production. It is expected that during the “Twelfth Five-Year Plan†period, the annual production capacity of potassium fertilizer in China will reach around 10 million tons of physical quantity, and the annual output will be based on the market. The situation remained at 6 million to 8 million tons in kind.
Therefore, the self-supply rate of potash fertilizer in China is expected to increase from about 40% in the “Eleventh Five-Year Plan†period to about 80%, which will greatly reduce the risks of international potash resource monopoly to China’s agricultural production.
It was learned from the meeting that negotiations on potash fertilizer importation had already started next year, and the foreign offer was very high at present. The Chinese side argued that it was in a stalemate game. Because there is enough potash fertilizer, there are still more than 4 million tons of stocks in the country. Therefore, the price of imported potash fertilizer that China insists is lower than that of India. With the substantial increase in the self-supply rate of potash fertilizer in China during the “12th Five-Year Plan†period, the favorable weight of China’s negotiations will continue to increase, which will effectively counterbalance the price monopoly of potash fertilizer in foreign countries.
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