China Basic Chemical Industry Report, 2007
During the first three quarters of 2006, both the production volume and production capability of Urea, Phosphate fertilizer and raw salt saw fast growth in China, while restricted by resources, that of the potash fertilizer is just on the contrary. Besides, total profits of nitrogenous fertilizer industry decreased as well compared to the same period of last year, and even worse to that of the phosphate fertilizer industry. After the downturn in the year of 2005, chemical fiber industry has revived obviously. Noticeably, the profit growth of Potash fertilizer industry, plastic products industry and chemical pesticide industry maintained strong momentum continuously.
From long term view, a bright prospect of potash fertilizer industry will be expected. It is forecasted that the annual growth rate of global production capacity of potash fertilizers during the year of 2006 to 2010 will be at 2.1%. Besides, the shortage storage in North American also indicates that the international price of potash fertilizer will run at a high level in the future.
The year of 2006 saw the thriving of organic silicon market both at China and abroad. China's domestic and overseas organic silicon enterprises all raised the product prices, which was a reflection of the strong market demand. With the improving power supply, there will be a gradual decrease in organic silicon supply in the future. Presently, the concentration of organic silicon industry in China is relatively high, and the prices of organic silicon will run highly in the next two years. Yet, the high price of organic silicon will decline gradually due to the production capacity of new projects to be released.
The decreasing price of raw salt, which resulted from the excessive production capacity, is crucial to the recovery of pure alkali industry in 2006. The price of raw salt will still reduce due to the inertia of production capacity expansion. The cost of pure alkali industry will continually decline in the year of 2007.
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