Research Background

Our company is a professional advisory company based on the Information Department of China National Food Industry and we focus on the industry research of agriculture up-stream and down-stream market. The company has a relatively complete system of information statistics and industry database, as well as a vast array of high quality research team, providing the customers with special and in-depth strategy services. 

Since 2008, there has been a violent fluctuation in the Phosphate Fertilizer market in aspects of price trend, raw material supply, export and industry profit, etc. which indicates an obvious trend of interior integration. The market trend becomes the great concern of practitioners and related investors. 

Based on the data and information from the State Statistical Bureau, General Administration of Customs, Chemical Information Center, Industry Associations in the field of Fertilizer, the report makes analysis on the history of China¡¯s phosphate fertilizer industry, and on this basis conducts analysis on forward-looking trends in the development of the industry in 2009-2010. The major points of the research is the industry policies, supply and demand, raw materials, industry profitability and growth, logistics and sales network and so on, which provide the industry specialists with data and strategy services. 

We organize the experts in fertilizers, agricultural market, technology and financial fields to provide accurate, impersonal, comprehensive and systematic analysis on major industry chains of the overall market, describe the market status and give professional advisory on the development trend of China¡¯s phosphate fertilizer market in 2009-2012. 

The phosphate fertilizer products included in this report are: straight phosphate fertilizers (SSP, TSP and calcium magnesium phosphate, etc.) & phosphate compound fertilizers (DAP, MAP and NPK, etc.) 

Table of Contents

RESEARCH BACKGROUND II
CONTENTS 1
FIGURES AND TABLES 8
1 POLICY ENVIRONMENT ANALYSIS ON CHINA'S PHOSPHATE FERTILIZER INDUSTRY 10
1.1 INDUSTRY PLANNING AND INVESTMENT POLICIES OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY 10
1.1.1 Industry planning 10
1.1.2 Investment policies 11
1.1.3 Admission policy 12
1.2 CHINA'S POLICY ON MINERAL RESOURCES (SULFUR AND PHOSPHORITE) 12
1.2.1 Phosphorite resource policy 12
1.2.2 Sulfur resource policy 13
1.3 EXPORT POLICY OF CHINA'S PHOSPHATE FERTILIZER 14
1.3.1 Import quotas and VAT policy 14
1.3.2 Export tariff policy 14
1.4 PRICE CONTROL POLICY OF CHINA'S PHOSPHATE FERTILIZER 15
1.5 TAX AND SUBSIDY POLICIES OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY 15
1.5.1 Preferential policies of phosphate fertilizer value-added tax 15
1.5.2 Subsidy policies of phosphate fertilizer industry 16
1.5.3 Other preferential policies 16
1.6 TRANSPORTATION POLICY ANALYSIS ON CHINA'S PHOSPHATE FERTILIZER INDUSTRY 17
1.7 CHINA'S ENVIRONMENTAL POLICY CONSTRAINTS ON THE PHOSPHATE FERTILIZER INDUSTRY 17
1.8 POLICY PROSPECT OF PHOSPHATE FERTILIZER INDUSTRY IN 2009-2012 18

2 SUPPLY AND DEMAND ANALYSIS AND FORECAST ON CHINA'S PHOSPHATE FERTILIZER MARKET 19
2.1 THE GROWTH POTENTIAL OF CHINA'S PHOSPHATE FERTILIZER DEMAND 19
2.1.1 The growth potential of phosphate fertilizer demand in China 19
2.1.1.1 Factors that impacts the demand for phosphate fertilizer in China 19
2.1.1.2 The effect of profitability change of primary products on phosphate
2.1.1.3 The effect of agricultural subsidies on phosphate fertilizer consumption 22
2.1.2 The agricultural demand for main varieties of fertilizer 23
2.1.2.1 SSP 23
2.1.2.2 DAP 24
2.1.2.3 MAP 25
2.1.2.4 NPK 26
2.1.3 Export prospect of China's phosphate fertilizer 28
2.1.3.1 Forecast on international phosphate fertilizer demand 28
2.1.3.2 Export prospect of China's phosphate fertilizer 30
2.1.4 The growth potential of demand for China's phosphate fertilizer in 2010-2012 31
2.2 SUPPLY ANALYSIS ON PHOSPHATE FERTILIZER 32
2.2.1 The growth potential of production capacity of phosphate fertilizer 32
2.2.2 Forecast on production allocation of phosphate fertilizer 33
2.2.3 Import prospect of phosphate fertilizer 34
2.2.4 The growth potential of supply capacity of phosphate fertilizer 35
2.3 SUPPLY AND DEMAND BALANCE OF PHOSPHATE FERTILIZER IN 2010-2012 35

3 ANALYSIS ON THE SUPPLY OF MAIN FUEL AND RAW MATERIALS OF PHOSPHATE FERTILIZER 36
3.1 SUPPLY OF RAW MATERIAL IN PHOSPHATE FERTILIZER INDUSTRY 36
3.1.1 Supply capacity of phosphorite 36
3.1.1.1 Supply prospect of phosphorite 36
3.1.1.2 Regional distribution and transportation of phosphorites 37
3.1.2 Supply capacity of sulfur 38
3.1.2.1 Supply prospect of sulfur 38
3.1.2.2 Import prospect of Sulfur in China 39
3.1.2.3 The growth potential of production capacity of sulfur in China 40
3.1.3 Supply status of other raw materials 41
3.2 ELECTRIC POWER SUPPLY AND OTHER FUEL SUPPLY 42
3.3 SUPPLY PROSPECT OF RAW MATERIALS AND FUELS IN PHOSPHATE FERTILIZER INDUSTRY IN 2010-2012 42

4 COSTS AND PROFITS ANALYSIS ON CHINA'S PHOSPHATE FERTILIZER INDUSTRY 43
4.1 ANALYSIS ON PRODUCTION COSTS OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY 43
4.1.1 Analysis on SSP production cost change in 2006-2009 in China 43
4.1.2 Analysis on DAP production cost change in 2006-2009 in China 43
4.1.3 Analysis on MAP production cost change in 2006-2009 in China 44
4.1.4 Analysis on NPK production cost change in 2006-2009 in China 45
4.2 PROFIT MARGIN OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY 46
4.2.1 Profit margin of China's phosphate fertilizer 46
4.2.2 Profit margin of China's phosphate compound fertilizer 46
4.3 ANALYSIS ON COMPETITIVENESS OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY 47
4.3.1 Profitability of China's phosphate fertilizer industry 47
4.3.2 Development capacity of China's phosphate fertilizer industry 48
4.3.3 Anti-risk ability of China's phosphate fertilizer industry 48
4.4 COMPARISON ON COMPETITIVENESS OF PHOSPHATE COMPOUND FERTILIZER ENTERPRISES IN CHINA (BY REGION) 49
4.5 COMPARISON ON COMPETITIVENESS OF PHOSPHATE COMPOUND FERTILIZER ENTERPRISES IN CHINA (BY SCALE) 50
4.6 COMPARISON ON COMPETITIVENESS OF COMPOUND FERTILIZER ENTERPRISES AND PHOSPHATE FERTILIZER ENTERPRISES 51
4.7 COMPREHENSIVE EVALUATION ON THE COMPETITIVENESS OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY AND TREND IN 2010-2012 51

5 ANALYSIS ON LOGISTICS AND SALES NETWORK OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY 52
5.1 REGIONAL DISTRIBUTION OF MAIN PRODUCTION ENTERPRISES OF CHINA'S PHOSPHATE FERTILIZER 52
5.2 TRANSPORTATION EVALUATION OF CHINA'S PHOSPHATE FERTILIZER 52
5.2.1 Railway Transportation 52
5.2.2 Highway Transportation 53
5.3 SALES NETWORK OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY 53
5.4 COMPREHENSIVE EVALUATION ON THE LOGISTICS AND SALES NETWORK OF CHINA'S PHOSPHATE FERTILIZER INDUSTRY AND TREND 54
5.4.1 Development trend of logistics of China's phosphate fertilizer industry in 2010-2012 54
5.4.2 Development trend of sales network of China's phosphate fertilizer industry in 2010-2012 54

6 REGIONAL MARKET ANALYSIS 56
6.1 NORTHEAST CHINA£¨HEILONGJIANG, JILIN, LIAONING£© 56
6.1.1 Supply capability in 2006-2009 56
6.1.2 Demand analysis in 2006-2009 56
6.1.3 Price trend in 2006-2009 57
6.1.4 Development trend in 2010-2012 58
6.2 NORTH CHINA£¨HEBEI, SHANDONG, SHANXI£© 58
6.2.1 Supply capability in 2006-2009 58
6.2.2 Demand analysis in 2006-2009 59
6.2.3 Price trend in 2006-2009 59
6.2.4 Development trend in 2010-2012 60
6.3 CENTRAL CHINA£¨HENAN, HUBEI, HUNAN£© 60
6.3.1 Supply capability in 2006-2009 60
6.3.2 Demand analysis in 2006-2009 61
6.3.3 Price trend in 2006-2009 61
6.3.4 Development trend in 2010-2012 62
6.4 EAST CHINA£¨ANHUI, JIANGSU, JIANGXI, ZHEJIANG£© 62
6.4.1 Supply capability in 2006-2009 62
6.4.2 Demand analysis in 2006-2009 63
6.4.3 Price trend in 2006-2009 64
6.4.4 Development trend in 2010-2012 64
6.5 SOUTH CHINA£¨GUANGDONG, GUANGXI, FUJIAN£© 64
6.5.1 Supply capability in 2006-2009 64
6.5.2 Demand analysis in 2006-2009 65
6.5.3 Price trend in 2006-2009 66
6.5.4 Development trend in 2010-2012 66
6.6 SOUTHWEST CHINA£¨SICHUAN, GUIZHOU, YUNNAN, CHONGQING£© 66
6.6.1 Supply capability in 2006-2009 66
6.6.2 Demand analysis in 2006-2009 67
6.6.3 Price trend in 2006-2009 68
6.6.4 Development trend in 2010-2012 68
6.7 NORTHWEST CHINA£¨SHAANXI, GANSU, NINGXIA, QINGHAI, XINJIANG£© 69
6.7.1 Supply capability in 2006-2009 69
6.7.2 Demand analysis in 2006-2009 70
6.7.3 Price trend in 2006-2009 70
6.7.4 Development trend in 2010-2012 71

7 ANALYSIS ON MAIN ENTERPRISES 72
7.1 YUNTIANHUA GROUP CO., LTD. 72
7.1.1 Company profile 72
7.1.2 Production capacity and output of phosphate fertilizer in 2006-2009 72
7.1.3 Profitability and operation capacity of enterprise 72
7.1.4 Development trend and prospect 73
7.2 SHANDONG LUXI CHEMICAL CO., LTD. 74
7.2.1 Company profile 74
7.2.2 Production capacity and output of phosphate fertilizer in 2006-2009 74
7.2.3 Profitability and operation capacity of enterprise 74
7.2.4 Development trend and prospect 75
7.3 HUBEI YIHUA CHEMICAL CO., LTD. 75
7.3.1Company profile 75
7.3.2 Production capacity and output of phosphate fertilizer in 2006-2009 76
7.3.3 Profitability and operation capacity of enterprise 76
7.3.4 Development trend and prospect 77
7.4 ANHUI LIUGUO CHEMICAL CO., LTD. 78
7.4.1Company profile 78
7.4.2 Production capacity and output of phosphate fertilizer in 2006-2009 78
7.4.3 Profitability and operation capacity of enterprise 78
7.4.4 Development trend and prospect 79
7.5 WENGFU (GROUP) CO., LTD. 80
7.5.1Company profile 80
7.5.2 Production capacity and output of phosphate fertilizer in 2006-2009 80
7.5.3 Profitability and operation capacity of enterprise 80
7.5.4 Development trend and prospect 81

APPENDIX 82
Table1, P-Fertilizer Production by Variety, 2004-2008 82
Table2, P-Fertilizer Production, 2004-2009 82
Table3, P-Fertilizer Consumption, 2004-2009 83
Table4, Balance Sheet of DAP in China, 2004-2009 84
Table5, Balance Sheet of NPK in China, 2004-2009 84
Table6, China's DAP Imports by Country Original, 2004-2008 84
Table7, China's DAP Exports by Country Destination, 2004-2008 85
Table8, DAP Imports by Customs, 2004-2008 87
Table9, China's DAP Exports by Customs, 2004-2008 87
Table10, China's DAP Imports by Province, 2004-2008 88
Table11, China's MAP Exports by Destination Country, 2004-2008 88
Table12, China's NPK Imports by Country Original, 2004-2008 89
Table13, China's NPK Exports by Destination Country, 2004-2008 89
Table14, NPK Imports by Customs, 2004-2008 92
Table15, China's NPK Exports by Customs, 2004-2008 92
Table16, China's SSP & TSP Exports by Destination Country, 2003-2008 93
Table17, NPK Imports by Provinces, 2004-2008 93
Table18, NPK Cost of Crops, 1998-2008 94
Table19, DAP Cost of Crops, 1998-2008 95
Table20, SSP & TSP Cost of Crops, 1998-2008 95
Table21, China's Production by Major Raw Materials of Phosphate Fertilizer, 2003-2008 95
Table22, China's Import by Major Raw Materials of Phosphate Fertilizer, 2003-2008 96
Table23, China's Export by Major Raw Materials of Phosphate Fertilizer, 2003-2008 96
Table24, China Phosphorite Production by Provinces, 2003-2008 96
Table25, China Sulphric Acid Production by Provinces, 2003-2008 97
Table26, China Ammonia Production by Provinces, 2003-2008 98
Table27, China's Sulfur Import by Country Original, 2003-2007 99
Table28, China's Sulfur Import by Customs, 2004-2008 100
Table29, China Phosphorite Exports by Destination Country, 2004-2008 102
Table30, China Phosphorite Exports by Customs, 2004-2008 103

Figures and Tables
FIGURE2.1, CHINA'S TOTAL PLANT AREA OF CROP 20
FIGRUE2.2, RETURNS FROM MAJOR CROPS IN CHINA 21
FIGURE2.3,CHINA SINGLE P-FERTILIZER CONSUMPTION ON AGRICUTURE 21
FIGURE2.4,CHINA COMPOUND P-FERTILIZER CONSUMPTION ON AGRICUTURE 22
FIGURE2.5, CHINA SSP CONSUMPTION,1996-2012 23
FIGURE2.6,SSP COST OF MAJOR CROPS 24
FIGURE2.7,CHINA DAP CONSUMPTION,1992-2012 25
FIGURE2.8,DAP COST OF MAJOR CROPS 25
FIGURE2.9,CHINA MAP CONSUMPTION,2000-2012 26
FIGURE2.10,MAP COST OF MAJOR CROPS 26
FIGURE2.11, CHINA NPK CONSUMPTION,1995-2012 27
FIGURE2.12,NPK COST OF MAJOR CROPS (1) 27
FIGURE2.13,NPK COST OF MAJOR CROPS (2) 28
FIGURE2.14,INTERNATIONAL PRICE OF DAP,2002-2009 29
FIGURE2.15,INTERNATIONAL PRICE OF MAP,2002-2009 29
FIGURE2.16,INTERNATIONAL PRICE OF NPK,2006-2009 30
FIGURE2.17, CHINA P-FERTILIZER EXPORTS 31
FIGURE2.18, CHINA P-FERTILIZER EXPORTS BY PRODUCT 31
FIGURE2.19, CHINA P-FERTILIZER CONSUMPTION,1990-2012 32
FIGURE2.20, CHINA P-FERTILIZER PRODUCTION,1990-2012 33
FIGURE2.21, CHINA P-FERTILIZER IMPORTS 34
TABLE2.1, BALANCE SHEET OF P-FERTILIZER IN CHINA 35
FIGURE3.1, CHINA PHOSPHATE ORA PRODUCTION 37
FIGURE3.2, CHINA SULPHUR CAPACITY AND PRODUCTION,2000-2009 39
FIGURE3.3, CHINA'S SULFUR IMPORT VOLUME AND IMPORT PRICE, 1996-2009 40
FIGURE3.4, CHINA SULPHUR CAPACITY AND PRODUCTION,2009-2015 41
TABLE4.1, PRODUCTION COST OF SSP 43
FIGURE4.1,PRODUCTION COST & PROFIT OF DAP 44
TABLE4.2, PRODUCTION COST OF DAP 44
FIGURE4.2,PRODUCTION COST & PROFIT OF MAP 45
TABLE4.3, PRODUCTION COST OF MAP 45
TABLE4.4, PRODUCTION COST OF NPK 45
FIGURE4.3, PROFIT MARGIN OF SINGLE PHOSPHATE FERTILIZER MANUFACTURE 46
FIGURE4.4, PROFIT MARGIN OF COMPOUND PHOSPHATE FERTILIZER MANUFACTURE 47
TABLE 4.5,THE COST & EXPENSE OF P-FERTILIZER INDUSTRY,2003-2009 47
TABLE4.6,ROE OF P-FERTILIZER INDUSTRY, 2003-2009 48
TABLE4.7,PERCENTAGE OF LOSS-INCURRING ENTERPRISES OF P-FERTILIZER INDUSTRY, 2003-2009 48
TABLE4.8,THE DEVELOPMENT ABILITY OF P-FERTILIZER INDUSTRY IN CHINA,2003-2009 48
TABLE4.9 CHINA'S P-FERTILIZER MANUFACTURE CONCENTRATION RATIO 50
TABLE6.1, P-FERTILIZER PRODUCTION OF NORTHEAST CHINA 56
TABLE6.2, AMMONIUM PHOSPHATE FERTILIZER PRODUCTION OF NORTHEAST CHINA 56
TABLE6.3, P-FERTILIZER DEMAND OF NORTHEAST CHINA 57
FIGURE6.1,P-FERTILIZER PRICE IN NORTHEAST CHINA 57
TABLE6.4, P-FERTILIZER PRODUCTION OF NORTH CHINA 58
TABLE6.5, AMMONIUM PHOSPHATE FERTILIZER PRODUCTION OF NORTH CHINA 58
TABLE6.6, P-FERTILIZER DEMAND OF NORTH CHINA 59
FIGURE6.2,P-FERTILIZER PRICE IN NORTH CHINA 59
TABLE6.7, P-FERTILIZER PRODUCTION OF CENTRAL CHINA 60
TABLE6.8, AMMONIUM PHOSPHATE FERTILIZER PRODUCTION OF CENTRAL CHINA 61
TABLE6.9, P-FERTILIZER DEMAND OF CENTRAL CHINA 61
FIGURE6.3,P-FERTILIZER PRICE IN CENTRAL CHINA 62
TABLE6.10, P-FERTILIZER PRODUCTION OF EAST CHINA 63
TABLE6.11, AMMONIUM PHOSPHATE FERTILIZER PRODUCTION OF EAST CHINA 63
TABLE6.12, P-FERTILIZER DEMAND OF EAST CHINA 63
FIGURE6.4,P-FERTILIZER PRICE IN EAST CHINA 64
TABLE6.13, P-FERTILIZER PRODUCTION OF SOUTH CHINA 65
TABLE6.14, AMMONIUM PHOSPHATE FERTILIZER PRODUCTION OF SOUTH CHINA 65
TABLE6.15, P-FERTILIZER DEMAND OF SOUTH CHINA 65
FIGURE6.5,P-FERTILIZER PRICE IN SOUTH CHINA 66
TABLE6.16, P-FERTILIZER PRODUCTION OF SOUTHWEST CHINA 67
TABLE6.17, AMMONIUM PHOSPHATE FERTILIZER PRODUCTION OF SOUTHWEST CHINA 67
TABLE6.18, P-FERTILIZER DEMAND OF SOUTHWEST CHINA 67
TABLE6.19, P-FERTILIZER PRODUCTION OF NORTHWEST CHINA 69
TABLE6.20, AMMONIUM PHOSPHATE FERTILIZER PRODUCTION OF NORTHWEST CHINA 69
TABLE6.21, P-FERTILIZER DEMAND OF NORTHWEST CHINA 70
FIGURE6.7,P-FERTILIZER PRICE IN NORTHWEST CHINA 70
TABLE7.1, P-FERTILIZER PRODUCTION OF YUNTIANHUA GROUP CO.,LTD. 72
TABLE7.2,THE ECONOMIC INDICATORS OF YUNNAN YUNTIANHUA CO., LTD 73
TABLE7.3,P-FERTILIZER PRODUCTION OF SHANDONG LUXI CHEMICAL CO.,LTD. 74
TABLE7.4,THE ECONOMIC INDICATORS OF SHANDONG LUXI CHEMICAL CO.,LTD 75
TABLE7.5, P-FERTILIZER PRODUCTION OF HUBEI YIHUA CHEMICAL CO., LTD. 76
TABLE7.6,THE ECONOMIC INDICATORS OF HUBEI YIHUA CHEMICAL INDUSTRY CO., LTD. 77
TABLE7.7, P-FERTILIZER PRODUCTION OF ANHUI LIUGUO CHEMICAL CO., LTD. 78
TABLE7.8,THE ECONOMIC INDICATORS OF ANHUI LIUGUO CHEMICAL CO., LTD. 79
TABLE7.9, P-FERTILIZER PRODUCTION OF WENGFU GROUP 80
TABLE7.10,THE ECONOMIC INDICATORS OF WENGFU GROUP 81