China Fertilizer Market Review & Outlook 2007/2008

Thu May 29, 2008 9:00pm EDT
 
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DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c93200) has announced the
addition of "China Fertilizer Market Review & Outlook 2007/2008" to
their offering.

   China has shaken off macro-economy depression and set foot on a
fast growing road since 2003. In the meantime, under the conditions of
shortage of supply, the central government has adopted a set of
agriculture-oriented policies in order to stimulate the recovery of
grain production, for example, agricultural subsidy expenditure,
agricultural tax abolishment, etc. Therefore, fertilizer production,
demand and investment in China witnessed a continuous growth
influenced with the two favourable factors.

   However, under the conditions of shortage of domestic and
international energy sources plus surging prices of mineral resources,
a set of macro-adjustment policies are adopted to control a highly
liquid currency circulation and prevent inflation; at the same time,
price and revenue policies are carried out to restrain the excessive
consumption of energy sources and mineral resources and large amount
of investment into high energy consumption industries. Negative
effects in fertilizer industry have increased with the implementation
of macro-economy policies, and they showed more distinctive entered
2006-2007 as followed:

   In 2007, domestic supply and demand are blooming in fertilizer
market with strong demand worldwide. However, fertilizer material cost
and industrial powder generally marked up, suppressing the rise of
fertilizer production cost and price, plus export limit, so profit
margin in fertilizer industry decreased dramatically.

   From the view of new policies adopted by central government and
policy guide in the Central Economy Working Conference in November and
December, 2007, policies will focus on the following points next year.
It will deepen the reform of fiscal revenue, price and investment
system to promote the change of economy development; macro-adjustment
will be carried out on the principle of quantity control, price
stabilization, structure adjustment and balance promotion; the most
important task of macro-adjustment is to prevent excessive economy
growth and avoid dramatic price inflation; forceful measures will be
adopted to restrain the excessive price growth and enhance the
production of basic necessities, such as grains, edible vegetable oil,
meat products, etc; currency polices will play a more important role
in macro-economy to restrain total amount and speed of currency
credit; stable fiscal policies and tight currency polices will be
implemented.

   Fertilizer industry in 2008 will be restrained by cost growth and
price limit under the influence of the mentioned macro policies. In
the meantime, the implementation time of fertilizer production
preferential policy abolishment brought forward in 2006 is still not
settled, further deepening the uncertainty of Chinese fertilizer
market. Therefore, it is more important to estimate and grasp
precisely the trend of domestic fertilizer production and market.

   Combined with national economy development and policy reform,
BOABC will provide in-depth research of the Chinese fertilizer market
trends in 2008. It will provide an overall analysis and review of the
Chinese fertilizer market policies and trends in 2007 to provide a
specific estimate for the future of the Chinese fertilizer market. The
report will be a strategic reference for insiders domestically and
internationally focusing on the fertilizer market in China.

   For more information, visit
http://www.researchandmarkets.com/reports/c93200

Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

Copyright Business Wire 2008

 

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