Domestic fertilizer demand has stabilized or increased slightly this year.

The "2015 Symposium on sulfur and Chemical Fertilizer Market" sponsored by China sulfuric Acid Industry Association and China Phosphate and compound Fertilizer Industry Association was held in Beijing on April 14. The meeting held that during the acceleration period of China's policy adjustment, the chemical fertilizer industry enjoyed a substantial reduction in the exemption of value-added tax, preferential gas prices, electricity prices, freight rates and other concessions. Under the influence of the Zero growth Action Plan of Chemical Fertilizer Application, the domestic demand for agricultural chemical fertilizer will maintain stable or slight growth in 2015.

At the same time, the meeting also analyzed the macroeconomic situation and industrial policies; interpreted the action plan for zero growth of chemical fertilizer use and the new agricultural development trend; carried out industry analysis and market prospects for international and domestic chemical fertilizers, sulfuric acid and sulfur; and discussed the development model of agricultural e-commerce and its impact on the industry and the innovation of chemical fertilizer marketing under the new normal.

It was learned from the meeting that the apparent consumption of phosphate fertilizer in China in 2014 decreased by 5.7% compared with the same period last year. Net export of phosphate fertilizer 3.75Mt, up 59.1% over the same period last year. Sulfuric acid production 92.5Mt, an increase of 6.9% over the same period last year. The apparent consumption of sulfuric acid 93.9Mt increased by 7.2% over the same period last year, and the amount of acid used in chemical fertilizers accounted for 60.9% of the total consumption, an increase of 4.9% over the same period last year. Imported sulfur 10.2Mt, down 3% from the same period last year, accounted for 33.4% of the world's sulfur trade volume. Imports of sulfuric acid 1.41Mt increased by 21.6% over the same period last year.

The meeting analyzed the ammonium phosphate market in 2014. Due to the loosening of tariff policy and the release of demand in the international market, the ammonium phosphate market has been better than 2013 since the second half of the year. However, from the perspective of market performance in 2014, international and domestic prices are gradually converging, which are still low compared with previous years, and corporate profits have not improved. Although the export policy of chemical fertilizer was relaxed in 2015, the competition in the international urea and phosphate fertilizer market intensified, and the growth of export volume was difficult to sustain. To turn losses into profits, enterprises must comply with the general trend of changing the way and adjusting the structure, and gain vitality through vigorous innovation.