High fertilizer prices will continue until 2022

Rising chemical fertilizer prices may affect the use of fertilizers by farmers around the world, exacerbate food supply safety risks, and push up international food prices.

Fertilizer prices remain high because the market has strong expectations of a decline in supply. 

The future trend of fertilizer prices depends on energy prices, various countries' subsidy export policies, and changes in crop planting. “Rising prices of chemical fertilizers will affect farmers’ planting costs, thereby discouraging farmers’ enthusiasm for planting. If farmers reduce their planting scale as a result, it may cause a series of serious consequences such as food shortages.”

Fertilizer prices remain high

Recently, the price of chemical fertilizers has continued to rise, and the cost of chemical fertilizer production has been too high. The market has strong expectations for a decline in the supply of chemical fertilizers. In addition, due to the relatively good fertilizer preparation of agricultural enterprises, some mid- and downstream enterprises continue to replenish inventory.

Energy products are essential raw materials for the production of fertilizers. Taking urea as an example, the production personnel need to convert the gas extracted from natural gas and coal into ammonia, which is then used to synthesize urea. As the current prices of natural gas and coal have risen to historical highs, since October, many fertilizer companies around the world have cut or stopped production.

The tight supply of chemical fertilizers will worsen next year. "At present, the unsold inventory of chemical fertilizer producers is very small, and global fertilizer producers may sell out all their inventory early next year.

Huaqiang Chemical has formed an annual output of 1.5 million tons of high-concentration ternary compound fertilizer, 1 million tons of urea, 800,000 tons of synthetic ammonia alcohol, 100,000 tons of organic fertilizer, 200,000 tons of organic and inorganic compound fertilizer, 300,000 tons of ammonium bicarbonate, peroxide 250,000 tons of hydrogen. 100,000 tons of dimethyl ether, 80,000 tons of sodium nitrate, 50,000 tons of melamine, 100 million color film woven bags, 100 million new wall tiles, 40 million square meters of high-end ceramic tile production capacity, and sales revenue exceeding 6 billion yuan. enterprise.

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