Countrymen first. Several major Chinese fertiliser industries have announced a temporary suspension of exports. The reason is to ensure the supply of their domestic markets, according to the National Commission for National Development and Reform (CNDR).

Indeed, in the first half of the year, China was supposed to export 3.2 million tonnes (Mt) of diammonium phosphate fertiliser to major buyers such as Pakistan and India and 2.4 Mt of urea, according to data. Yet China is one of the world's largest phosphate exporters.

As a result, such high volumes have prompted a call to order to condemn market manipulation and speculation. This is because Beijing wants to raise the price of raw materials. In fact, the NDRC recently announced last month that it was conducting an investigation into the fertiliser market and operators.

However, not even one name of the companies mentioned was affected by the suspension. But experts interviewed by Reuters said they were Sinoagri Group, China Nationale Offshore Oil Corp, Sinofert Holdings and China National Coal Group. None of them would comment.

Price increase

Fertiliser prices in China have indeed risen, as in any other region of the world. This is linked to high international demand and low Chinese production and thus high energy prices. In addition, flooding has affected production sites in central Henan, which of course has led to higher prices.

Since the beginning of the year, urea prices on the Zhengzhou Stock Exchange have risen by a third. Recently, they reached a record high of $405.19 per tonne before falling back a few days later. The same is true for other fertilisers.

Exports of fertiliser are now suspended, although the CNDR has not indicated how long this suspension will last. 

Santie

Photo Credit : Made in China

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