China's High-Dose Phosphorus and Compound Fertilizers Must Be Alerted for Overheat

February 19, 2023

Compared with foreign compound fertilizer producers, there are many high-concentration phosphate and compound fertilizer companies in China, but there are too few large-scale enterprise groups with international competitiveness. The signs of excessive development of high-density phosphate and compound fertilizers need to be vigilant.

This is the view expressed by Wu Xiyan, President of China Phosphate Fertilizer Industry Association, when he attended the national annual meeting of the phosphate fertilizer industry in Guiyang. It is understood that there are more than 120 phosphate and compound fertilizer companies in wet-process phosphoric acid plants in China, but most of them are small-scale.

The conclusions of the Research Report on the International Competitiveness of China's Phosphatic Fertilizer Industry jointly completed by the China Phosphate Fertilizer Industry Association and the Ministry of Commerce show that domestic phosphate and compound fertilizers are highly competitive in the domestic market thanks to the current fertilizer management system and preferential policies. Due to the small size of the company and long-term dependence on government support, although China's phosphate fertilizer output has leapt to the top in the world, the comprehensive international competitiveness of the phosphate fertilizer industry ranks fifth behind the United States, Morocco, Russia, and Tunisia.

Wu Xiyan said that at present, the layout of China's phosphate fertilizer industry is still unreasonable, especially the development of high concentrations of phosphorus compound fertilizer is overheated, blind investment and low-level redundant construction is more prominent. According to statistics and calculations, the existing production capacity and the production capacity of the enterprises for the “Eleventh Five-Year Plan” have exceeded the demand of agriculture. If irrational regulation is adopted, the irrational competition in the future will be fierce.

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