In autumn, the fertilizer market will start gradually, and the domestic demand of fertilizer will be released. It is expected that fertilizer prices in later period will keep its upward trend, but there is limited room to rise.

i. Domestic fertilizer prices rose slightly.

In August, the average factory price of domestic urea was 1,688 yuan per ton, up 1.6% month on month and down 9.0% year on year. The average factory price of diammonium phosphate was 2,250 yuan per ton, up 1.4% month on month and down 5.5% year on year. The average factory price of potassium chloride was 1822 yuan per ton, up 0.1% month-on-month and down 19.0% year-on-year. While for domestic compound fertilizer, it was 2,080 yuan per ton, up 1.0% month on month and down 4.6% year on year. The slight growth of the month-on-month prices are mainly affected by the transmission of international market price.

ii. The import and export of chemical fertilizer decreased year on year.

According to customs statistics, from January to July, China imported 5.88 million tons of chemical fertilizer, with a year-on-year decrease of 22.0% and imported value of USD1.71 billion, down 28.7% year on year. The export of chemical fertilizer was 14.32 million tons, down 5.9% year on year, and the export value was US $3.229 billion, down 24.2% year on year. In July, on the imported side, urea were mainly imported from The Netherlands, accounting for 68.2%. Diammonium phosphate is all imported from Japan. Potassium chloride was mainly from Canada, accounting for 45.2%. The import of compound fertilizer mainly comes from Norway, accounting for 39.0%.In terms of exports, urea was mainly exported to India, South Korea and Myanmar, accounting for 26.1%, 18.8% and 15.4% respectively. Diammonium phosphate was mainly exported to India, Thailand and Pakistan, accounting for 63.0%, 7.7% and 6.8%, respectively. Potassium chloride mainly went to South Korea and The Philippines, accounting for 28.3% and 25.4%, respectively. Compound fertilizer was mainly exported to the Philippines and Myanmar, accounting for 38.3% and 29.6%, respectively.

iii. International fertilizer prices have risen in general.

The average offshore price of urea of small particle in bulk in the Baltic region was $248 per ton in August, up 15.9% month on month and down 1.2% year on year. The FOB price of diammonium in the gulf region in the US was $334 a tonne, up 7.1% month on month and 1.8% year on year. The offshore price of potassium chloride in Israeli was $225 per ton, up 1.4% month on month, while down 19.4% year on year. The offshore price of 48% compound fertilizer of the Commonwealth of Independent States was $259 per ton, down 0.8% month on month and 10.7% year on year.