China fertilizer prices rise 12.5 pct year-on-year - analysts
Beijing. March 18. INTERFAX-CHINA - China's fertilizer prices have increased by up to 12.5 percent year-on-year, an industry consultancy told Interfax March 18.
Compound fertilizer prices nationwide were peaking at RMB 2,700 ($410.67) per ton as of March 18, up from RMB 2,400 ($365.04) a year ago, according to agriculture consultancy SN110.
Meanwhile, urea fertilizer prices in Shandong Province were at a high of RMB 1,930 ($293.55) per ton compared to RMB 1,850 ($273.96) in March 2010 - a rise of 4.32 percent.
The price hikes were due to rising production costs and low inventory, said Gao Juan, an analyst with the Hubei Province-based SN110.
Gao said the price of coal - a key feedstock for fertilizer production - in Shanxi Province's Jincheng City rose from roughly RMB 700 ($106.47) per ton at the start of 2010 to RMB 975 ($148.30) per ton at end-2010.
Phosphate fertilizer prices also have surged from RMB 3,000 ($456.60) per ton in March 2010 to RMB 3,500 ($532.35) this month because of increased phosphate ore costs, said Xu Hongzhi, an analyst with Beijing Orient Agribusiness Consultant Ltd.
China's fertilizer demand this year is expected to stand at 54.5 million tons, comprising 34.2 million tons of nitrogenous fertilizer, 13 million tons of phosphate fertilizer, and 7.3 million tons of potash, according to SN110.
- LX
