The Global Fertilizer Boom Will Last At Least 1-2 Years
Mar 01, 2023
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High grain prices+low inventories, and the high prosperity of chemical fertilizer is expected to continue under the large cycle of agrochemical industry. In 2021, food prices at home and abroad will continue to rise and maintain a high level, and the international grain and oil depot sales ratio will hit a new low in 15 years. Driven by tight supply and inflation, food prices are easy to rise but difficult to fall. On the demand side, maintaining high grain prices will drive the demand of fertilizer industry to increase. According to Mosaic, the growth rate of China's phosphate fertilizer demand will be between 3.5% and 6.4% in 2022. On the supply side, in the medium and long term, the supply-side reform of phosphorus chemical industry has continued to deepen, and the strong resource attribute has gradually emerged. In the short term, the global and domestic phosphorus fertilizer inventory is at a low level, and the Russia-Ukraine conflict will further exacerbate the global shortage of fertilizer supply. Some people in the industry believe that the high prosperity of fertilizer under this wave of agrochemical cycle is expected to last for at least 1-2 years, and the high profit space of fertilizer will lay the performance foundation for phosphorus chemical enterprises.
