Domestic phosphorus and compound fertilizer companies cut production into inevitable

Since May of this year, domestic phosphorus and compound fertilizer enterprises have entered the industry's worst recession period in the last 10 years under the condition of levying tariff policies and slow sales of product markets. In this harsh living environment, most companies adopt measures to reduce production and stop production.

According to reports, nearly 10 companies have ceased production in May: Tangshan Lihe, Hubei Dagukou, COSCO Intel, and Jiangsu Shuangchang... More big companies are cutting production: China and Afghanistan adjust annual output to the highest annual output of 50 %; Guizhou diammonium enterprise operates with partial production capacity; Zhaofu 50% start-up rate round inspection device; open-phosphorous group also reduces load production; the entire Yuntianhua International currently only opens half production capacity, and Sanhuan Sinochem Cargill operates half of its production capacity. Red phosphorus is half open.

Comments: high product prices, export restrictions and other factors, coupled with the current national fertilizer into the off-season, dealers dare to rush to purchase, making the phosphorus compound fertilizer industry trapped in dilemma difficult situation. Large stocks, funds are occupied, capital chain at any time cracking crisis. Some people believe that in the second half of the year, the days of production of phosphorus compound fertilizer companies will be even more sad.

On the one hand, the international fertilizer market is booming. On the other hand, the domestic market is deserted. The formation of a huge contrast has adversely affected the healthy development of the phosphate and compound fertilizer industry. If enterprises are to survive the predicament and live well, the country should not adopt the same policy as urea. It is necessary to formulate policies for the adjustment of export tariffs for phosphate fertilizers and compound fertilizers so that the slow-moving products can find a way out.