In the rapid development of China's phosphate and compound fertilizer industry, the domestic market has already achieved self-sufficiency, and whether the phosphate fertilizer industry needs to go out, and the country has introduced relevant restrictions on export policies, the domestic phosphate fertilizer market is controversial.
China's phosphate and compound fertilizer industry has experienced rapid development for more than ten years, reaching a very high high point, but this high point is also a turning point. Our self-sufficiency rate has risen from 50% to more than 95% in 2005. In 2006, it was a turning point. In particular, high-concentration compound fertilizers have been able to meet domestic demand in terms of quantity and structure. After June 2007, China has become an exporter of phosphate fertilizers. This is a landmark turning point. In 2007, our exports of diammonium phosphate will reach 2 million tons, and monoammonium phosphate will exceed 1.4 million tons, becoming the world's major exporter of phosphate fertilizers.
When we reached this height, it caused fierce changes in the domestic and foreign markets. Especially after February of this year, the price of high-concentration phosphate fertilizer represented by diammonium phosphate has changed. This is the most sudden and largest change in 50 years. It rose by more than 87% from US$250 per ton to US$420 per ton, drawing attention from the world. First, attention is paid to the background of price hikes, and the second is to focus on sustainable time. This is a matter of concern to China's phosphate and compound fertilizer industry.
The main reason for the price increase is the shortage caused by demand, while the change in China's price is based on raw materials. Of course, we are most concerned about the development of the industry. Our output of phosphate fertilizer is the largest in the world. Our structure has undergone major changes. Ten years ago, there were 1,100 phosphate fertilizer companies, and now there are 58 monoammonium phosphates (more than 50,000 tons). Ammonium 28, relatively concentrated, especially the emergence of large groups, promoted the integration of the entire industry, and this integration trend will further accelerate.
Now we all sing a tone that the national phosphorus resources will be seriously deficient. The Ministry of Land and Natural Resources classified phosphorus resources as one of the twenty resources that affect the sustainable development of the country after 2010. However, everyone neglected this issue. Our geological survey data refers to the 1990s and remains at 20 Years ago. The US National Geological Bureau announced the global phosphorus resources situation. China's phosphorus resources have risen to the top in the world. At the same time, due to breakthroughs in beneficiation technology, China will not be a country with a shortage of phosphorus resources, and the phosphate fertilizer industry can develop for hundreds of years.
The deviation of resource awareness will definitely affect the company's development strategy. We hope that the relevant government departments will seriously study the phosphorus resource positioning and reach consensus to promote and plan the development of the industry. This is the key to the development of phosphorus and compound fertilizer in China.
In my opinion, China's phosphate fertilizer industry must first meet domestic demand, and then it is through going out to obtain funds for the development of phosphate fertilizers in the international market. If we limit the export of phosphate fertilizers in the name of protecting resources, we will miss the golden age of phosphate fertilizer development. If according to the principles of the WTO, each country limits resources, then it cannot be called international trade. Therefore, the phosphate fertilizer industry needs to be more integrated with the global industry and advance the next step. Phosphate fertilizer companies are now in a helpless situation. We hope that relevant departments can focus on this issue in a unified manner so as not to delay the development of the industry. When we can meet domestic demand, we need to change our thinking, how the industry will develop stronger, we need to learn from the experience of typical enterprises in developed countries. The country proposes that the concept of scientific development guides the idea of ​​recycling economy and the comprehensive utilization of resources, especially as a raw material enterprise, it must continue to take this path.
As the upper reaches of the industry, production companies need distribution companies and need distributors to support them downstream. The relationship between manufacturers affects the long-term development of the company. This is a relationship that needs deep rationalization. I want to tell our distributors that no matter how the market changes, we must first ensure the domestic market. Our supply remains unchanged, key areas and customers remain unchanged, and we guarantee prices at the end. For example, it is impossible for Hongfu Zai to do distribution business, because this is not in line with the market economy structure. We must combine with circulation companies to develop together. We must choose long-term partners for cooperation and build new partnerships with capital as a link to achieve win-win and win-win results. In this way, the most cost-saving and marketing expenses can best exert the rational allocation of social resources.
China's phosphate and compound fertilizer industry has experienced rapid development for more than ten years, reaching a very high high point, but this high point is also a turning point. Our self-sufficiency rate has risen from 50% to more than 95% in 2005. In 2006, it was a turning point. In particular, high-concentration compound fertilizers have been able to meet domestic demand in terms of quantity and structure. After June 2007, China has become an exporter of phosphate fertilizers. This is a landmark turning point. In 2007, our exports of diammonium phosphate will reach 2 million tons, and monoammonium phosphate will exceed 1.4 million tons, becoming the world's major exporter of phosphate fertilizers.
When we reached this height, it caused fierce changes in the domestic and foreign markets. Especially after February of this year, the price of high-concentration phosphate fertilizer represented by diammonium phosphate has changed. This is the most sudden and largest change in 50 years. It rose by more than 87% from US$250 per ton to US$420 per ton, drawing attention from the world. First, attention is paid to the background of price hikes, and the second is to focus on sustainable time. This is a matter of concern to China's phosphate and compound fertilizer industry.
The main reason for the price increase is the shortage caused by demand, while the change in China's price is based on raw materials. Of course, we are most concerned about the development of the industry. Our output of phosphate fertilizer is the largest in the world. Our structure has undergone major changes. Ten years ago, there were 1,100 phosphate fertilizer companies, and now there are 58 monoammonium phosphates (more than 50,000 tons). Ammonium 28, relatively concentrated, especially the emergence of large groups, promoted the integration of the entire industry, and this integration trend will further accelerate.
Now we all sing a tone that the national phosphorus resources will be seriously deficient. The Ministry of Land and Natural Resources classified phosphorus resources as one of the twenty resources that affect the sustainable development of the country after 2010. However, everyone neglected this issue. Our geological survey data refers to the 1990s and remains at 20 Years ago. The US National Geological Bureau announced the global phosphorus resources situation. China's phosphorus resources have risen to the top in the world. At the same time, due to breakthroughs in beneficiation technology, China will not be a country with a shortage of phosphorus resources, and the phosphate fertilizer industry can develop for hundreds of years.
The deviation of resource awareness will definitely affect the company's development strategy. We hope that the relevant government departments will seriously study the phosphorus resource positioning and reach consensus to promote and plan the development of the industry. This is the key to the development of phosphorus and compound fertilizer in China.
In my opinion, China's phosphate fertilizer industry must first meet domestic demand, and then it is through going out to obtain funds for the development of phosphate fertilizers in the international market. If we limit the export of phosphate fertilizers in the name of protecting resources, we will miss the golden age of phosphate fertilizer development. If according to the principles of the WTO, each country limits resources, then it cannot be called international trade. Therefore, the phosphate fertilizer industry needs to be more integrated with the global industry and advance the next step. Phosphate fertilizer companies are now in a helpless situation. We hope that relevant departments can focus on this issue in a unified manner so as not to delay the development of the industry. When we can meet domestic demand, we need to change our thinking, how the industry will develop stronger, we need to learn from the experience of typical enterprises in developed countries. The country proposes that the concept of scientific development guides the idea of ​​recycling economy and the comprehensive utilization of resources, especially as a raw material enterprise, it must continue to take this path.
As the upper reaches of the industry, production companies need distribution companies and need distributors to support them downstream. The relationship between manufacturers affects the long-term development of the company. This is a relationship that needs deep rationalization. I want to tell our distributors that no matter how the market changes, we must first ensure the domestic market. Our supply remains unchanged, key areas and customers remain unchanged, and we guarantee prices at the end. For example, it is impossible for Hongfu Zai to do distribution business, because this is not in line with the market economy structure. We must combine with circulation companies to develop together. We must choose long-term partners for cooperation and build new partnerships with capital as a link to achieve win-win and win-win results. In this way, the most cost-saving and marketing expenses can best exert the rational allocation of social resources.
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