Mixed Fertilizer Price in China Stands at $884 per Ton

China Mixed Fertilizer Export Price in September 2022

In September 2022, the mixed fertilizer price amounted to $884 per ton (FOB, China), almost unchanged from the previous month. Over the period from January 2022 to September 2022, it increased at an average monthly rate of +3.8%. The pace of growth appeared the most rapid in March 2022 an increase of 11% against the previous month. Over the period under review, the average export prices attained the maximum at $888 per ton in August 2022, and then shrank in the following month.

Prices varied noticeably by the country of destination: the country with the highest price was Turkey ($1,338 per ton), while the average price for exports to the Philippines ($609 per ton) was amongst the lowest.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was recorded for supplies to Bangladesh (+6.6%), while the prices for the other major destinations experienced more modest paces of growth.

China Mixed Fertilizer Export Prices by Type

Prices varied noticeably by the product type; the product with the highest price was monoammonium phosphate (MAP) ($1,000 per ton), while the average price for exports of fertilizers, mineral or chemical; containing the two fertilizing elements nitrogen and phosphorus, other than nitrates and phosphates ($548 per ton) was amongst the lowest.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was recorded for the following types: monoammonium phosphate (+5.3%), while the prices for the other products experienced more modest paces of growth.

China Mixed Fertilizer Exports

In September 2022, mixed fertilizer exports from China reached 866K tons, increasing by 5.3% against August 2022. Overall, exports enjoyed buoyant growth. The pace of growth was the most pronounced in March 2022 when exports increased by 197% against the previous month. Over the period under review, the exports hit record highs in September 2022.

In value terms, mixed fertilizer exports stood at $766M (IndexBox estimates) in September 2022. Over the period under review, exports saw a remarkable increase. The pace of growth was the most pronounced in March 2022 when exports increased by 231% month-to-month. Over the period under review, the exports attained the peak figure in September 2022.

China Mixed Fertilizer Exports by Type

Diammonium phosphate (469K tons), monoammonium phosphate (MAP) (243K tons) and mixed nitrogen, phosphorus and potassium (NPK) fertilizers (92K tons) were the main products of mixed fertilizer exports from China, with a combined 93% share of total exports. These products were followed by fertilizers, mineral or chemical; containing the two fertilizing elements nitrogen and phosphorus, other than nitrates and phosphates and mixed phosphorus and potassium (PK) fertilizers, which together accounted for a further 7.2%.

From January 2022 to September 2022, the most notable rate of growth in terms of shipments, amongst the major product types, was attained by NPK fertilizer (with a CAGR of +32.5%), while the other products experienced more modest paces of growth.

In value terms, diammonium phosphate ($429M), monoammonium phosphate (MAP) ($243M) and mixed nitrogen, phosphorus and potassium (NPK) fertilizers ($60M) were the most exported types of mixed fertilizers from China worldwide, with a combined 95% share of total exports. Fertilizers, mineral or chemical; containing the two fertilizing elements nitrogen and phosphorus, other than nitrates and phosphates and mixed phosphorus and potassium (PK) fertilizers lagged somewhat behind, together comprising a further 4.5%.

In terms of the main product categories, NPK fertilizer, with a CAGR of +35.1%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other products experienced more modest paces of growth.

China Mixed Fertilizer Exports by Country

Bangladesh (220K tons), India (140K tons) and Pakistan (62K tons) were the main destinations of mixed fertilizer exports from China, together comprising 49% of total exports. the Philippines, Brazil, Japan, Australia, Vietnam, Malaysia, South Korea, Indonesia, Turkey and Thailand lagged somewhat behind, together comprising a further 39%.

From January 2022 to September 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Malaysia (with a CAGR of +70.7%), while the other leaders experienced more modest paces of growth.

In value terms, Bangladesh ($199M), India ($125M) and Japan ($56M) constituted the largest markets for mixed fertilizer exported from China worldwide, together comprising 50% of total exports. Pakistan, Brazil, Australia, the Philippines, Vietnam, Turkey, South Korea, Malaysia, Indonesia and Thailand lagged somewhat behind, together accounting for a further 37%.

Malaysia, with a CAGR of +73.1%, recorded the highest rates of growth with regard to the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Factors Affecting Mixed Fertilizer Prices

Mixed fertilizers are an important input for agriculture in China. Mixed fertilizer prices in China have been on the rise in recent years, due to a number of factors. One key factor is the increased demand for mixed fertilizers, as farmers seek to improve crop yields. As incomes have risen and the population has grown, more and more farmers are using mixed fertilizers to improve yields. This increased demand has put pressure on prices, as manufacturers struggle to keep up with demand.

Another key factor is the cost of raw materials, which has risen due to inflation and other economic factors. Mixed fertilizers contain nitrogen, phosphorus and potassium, which are all essential nutrients for plant growth. However, these materials are also in high demand globally, driving up their prices. The cost of transportation has also been rising, as fuel prices have increased.

The Chinese government has taken steps to support the domestic fertilizer industry, including subsidies and preferential policies. However, these measures have not been sufficient to offset the rising cost of mixed fertilizers. As a result, farmers are facing higher production costs and are struggling to maintain profitability.

Source: IndexBox Market Intelligence Platform