Two major policies affect the diammonium market changes

Although the export policy of diammonium phosphate has been introduced in December this year, it is still unknown how the export policy will be next year. Industry insiders are concerned about adjustments and trends. Dealers also expressed concern about tariff policies, and fear that restricting exports will cause prices to fall, so they are not too worried about getting goods.
According to statistics from China Chemical Network, it is estimated that by the end of 2010, the domestic total output of the diammonium phosphate industry will be approximately 15.76 million tons, and the annual output will be approximately 1,000-1 million tons, while the domestic demand in the same period will be only 700-800 million tons. The production capacity is far greater than the demand. Utilization rate is less than 70%.
From 2010 to 2012, a total of 14 companies in China have newly put into operation the ammonium phosphate project, with a total capacity of 5.17 million tons newly added. The production areas are mainly concentrated in Hubei, Guizhou, Yunnan, Sichuan and Shandong, Shaanxi and Inner Mongolia.
China's ammonium phosphate production capacity has increased year by year According to customs statistics, in recent years, China's import and export of DAP has shown a steady decline, which shows that China has fully achieved the self-sufficiency of DAP products, and can fully meet the needs of the domestic market, and appropriate Export.
In recent years, China's diammonium phosphate has maintained a steady upward trend (only forced to reduce due to policy reasons in 2008), customs data show that in 2009 the export of diammonium phosphate exceeded 2.07 million tons, becoming a new industry for foreign exchange earnings through exports. And it is expected that this year's export volume will exceed 3.5 million tons.
According to incomplete statistics from China Chemical Industry Network, by the end of 2010, China’s diammonium phosphate production enterprises will reach 42 and the industry’s total production capacity will reach 15.76 million tons, ranking the first in the world.
Southwest China: The southwest region is a major production area of ​​DAP, with about 11 production companies, ranking first in the total number of diammonium enterprises nationwide. Its production capacity also exceeds half of the country's total production capacity, with a total capacity of approximately 8.32 million tons per year. Its advantages are the presence of phosphate ore resources, the lowest production costs, and obvious advantages in outward direction. It is close to Guangxi Beibu Gulf and has strong radiation capabilities and is convenient for export in Southeast Asia. However, the disadvantages are also obvious, namely, it is far from the market and the transportation cost is high. And often affected by the wagon, it was forced to limit the shipment.
Central China: There are 9 diammonium phosphate producers in the region, ranking second, accounting for 21.58% of the total industry capacity. The advantage is that there are phosphate ore resources. Some enterprises have sulfuric acid resources, which are closer to the market than the southwest region. The transportation is convenient. There is almost no problem of limited transportation. The disadvantage is that the price of phosphate ore is about 100-200 yuan higher than that of the southwest region, and the production cost is Higher.
Other regions: There are many companies in other regions, and the main products are mainly medium and low-content products. The advantage is that the transportation distance is short, and it can be delivered to the market in a timely manner, with short transit time. The disadvantage is that raw materials need to be purchased, the production cost is the highest, the production scale is small, and the impact on the market is small.
Macroeconomic policies and new production capacity will affect changes in the market of diammonium 1. Macroeconomic policies. Although the export policy of diammonium phosphate has been introduced in December this year, it is still unknown how the export policy will be next year. Industry insiders are concerned about adjustments and trends. Dealers also expressed concern about tariff policies, and fear that restricting exports will cause prices to fall, so they are not too worried about getting goods. However, after the Phosphate Compound Fertilizer Conference, most dealers in the Northeast began to gradually change their mentality, thinking that no matter what the price is, they must begin to prepare fertilizers. Otherwise, the time will be too late, but at this time the factory continues to limit orders. This shows that the impact of the policy level on the diammonium industry has become the “invisible hand” behind it.
2, new production capacity. According to incomplete statistics from China Chemical Industry Network, as of the end of 2010, the domestic total production capacity of diammonium phosphate was 15.76 million tons, and more than 3 million tons of new capacity will be put into operation within the next two years. However, there are currently resource advantages and new plans are still on the table. There are many companies in the project and it is expected that by the end of 2012, China's domestic diammonium production capacity will exceed 18 million tons of production capacity, which will further exacerbate the already fiercely competitive domestic market, and exports seem to be the only choice for companies.

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