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It is understood that since the second half of this year, the domestic price of potash has increased rapidly, and the price of potassium chloride has risen from 1,600 yuan to 2,900 yuan. According to industry sources, this is mainly due to the fact that in the international potash fertilizer trade, sellers have formed two monopoly groups, the CANPOTEX sales company in North America and the BPC sales alliance in the former Soviet Union. These two major groups account for 75% of the world's potash fertilizer production capacity. As a result, the international potash fertilizer trade pricing negotiations have continued to raise prices. In the international potash fertilizer trade negotiations in 2006, a tussle war lasted for 8 months. Finally, the price of potash fertilizer in the international market increased by 50 US dollars per ton at the beginning of the year, and the average value of potassium chloride per ton of CIF in China's ports reached 216 US dollars. In May of this year, international potash fertilizer suppliers released their export winds. By the end of this year, the CIF potassium chloride exported to Southeast Asia will rise to US$300 per ton. This once again caused dramatic fluctuations in domestic potash prices.
In response, Zheng Mianping, an academician of the Chinese Academy of Engineering, and Feng Yuanqi, a senior chemical expert, pointed out that China’s annual consumption of potash fertilizer amounted to more than 11 million tons. However, the current proven reserves of potash resources account for only 0.45% of the world's total. It is necessary to import potassium fertilizer in appropriate amounts. However, the current dependence on the import of potash fertilizers is about 70%, which is very passive. Our country should take measures to get rid of potash fertilizer as soon as possible subject to human dilemma.
Experts pointed out that foreign large potash deposits are all located in marine formations, but China has not made breakthroughs in this area so there is still a great prospect for prospecting. In addition, countries such as Laos, Thailand, Turkmenistan, and Uzbekistan around the country have found abundant marine potassium minerals, providing favorable conditions for domestic companies to build factories overseas. If we combine domestic production bases with domestic companies to establish factories overseas, the import dependency will be reduced to 50% in the near future. In the mid-to-long term, the dependence on potash fertilizer imports will be reduced to 33%, and a stable supply of potash fertilizer resources in China can be achieved.
It is also known that the Qinghai Salt Lake Group, the largest potash fertilizer producer in China, has an annual production capacity of 2 million tons. In addition, the Lop Nur project in Xinjiang, which is under construction, will have an annual production capacity of 1.2 million tons in 2010.
Domestic Potassium Fertilizer Excessive Prices Get Out of Control
The reporter learned from the expert forum on innovation of potassium chemical materials and academician on energy-saving and emission reduction that was held yesterday. At present, the domestic price of potash fertilizer has been rising rapidly and there are signs of losing control. This is mainly due to the fact that the international giants of potash fertilizers have mastered the pricing discourse and continue to raise prices. According to industry insiders, China should speed up the construction of domestic production bases and reduce the dependence on potash fertilizer imports.