After two consecutive months of negative growth in fertiliser production in July and August, fertilizer production in September reversed the downward trend. According to the latest data, in September China produced a total of 6.953 million tons of chemical fertilizers (constrained quantity, the same below), an increase of 2.26% year-on-year; from January to September, the country cumulatively produced 60.462 million tons of chemical fertilizers, an increase of 6.13% year-on-year. In terms of sub-species, potash fertilizer production increased the most. In September, the country produced a total of 608,400 tons of potash fertilizer, an increase of 5.28% year-on-year; from January to September, the cumulative production of potash fertilizer was 4.544 million tons, an increase of 13.55% year-on-year. The growth rate of nitrogen fertilizer ranked second. In September, the country produced a total of 4,446,400 tons of nitrogen fertilizer, an increase of 3.52% year-on-year; from January to September, the cumulative production of nitrogen fertilizer was 40.463 million tons, an increase of 6.71% year-on-year. Phosphate fertilizer production showed a negative growth for the fifth consecutive month, but the decline rate has been significantly reduced. September production fell by 1.51% year-on-year, while the decline rate in previous months was above 3%.
The main reason for the increase in fertilizer production is the increase in new production capacity. Due to strong demand for fertilizers in previous years, there was a large amount of profitable space, and a large number of chemical fertilizer projects have been introduced across the country. These projects have been completed and put into production. Although the price of fertilizers was low this year and some old installations were forced to stop production due to losses, the increase in production of new plants was much larger than that of old plants.
In addition, after October, it is the peak season for using fertilizers in autumn. In September, fertilizer manufacturers increased the operating rate for the production of autumn fertilizers, which also increased production.
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