#East High-Tech# East High-Tech Senior Investment Consultant Qin Liang interviewed by Securities Daily: "Net Profits of 16 A-Share Fertilizer Companies Rose in the First Three Quarters; High Fertilizer Prices May Persist into Next Year"

In fact, since the beginning of this year, prices of various fertilizer types—including potash, phosphate, and compound fertilizers—have generally remained at relatively high levels, a trend noted by multiple fertilizer companies in their reports. For example, phosphate fertilizer producer Xingfa Group stated that, in the first three quarters of this year, affected by cyclical fluctuations in traditional chemical and agrochemical industries, sales prices of its agrochemical products surged significantly year-on-year, markedly enhancing profitability. Meanwhile, Chenguang Mining indicated that, in the first three quarters of this year, sales prices of its potassium chloride (potash) products rose year-on-year, driving substantial increases in both revenue and profit for its subsidiary. Data from the National Bureau of Statistics show that, as of September 30, the market price of compound fertilizer stood at RMB 3,800 per ton, up 18.52% year-on-year. According to the China Petroleum and Chemical Industry Federation, the market price of potassium chloride (potash) reached RMB 4,650 per ton as of September 30, up 35.17% year-on-year. Data from B2B platform Shengyishe indicate that, on September 30, the reference price of phosphate fertilizer (diammonium phosphate) was RMB 4,050 per ton, up 12.81% year-on-year. Mr. Qin Liang, Senior Investment Consultant at East High-Tech, told Securities Daily that, due to the wave of European fertilizer plant closures, European farmers have increased imports to meet domestic demand, triggering ripple effects across other global regions. Fertilizer prices are therefore expected to remain elevated for an extended period. Moreover, as Russia is the world’s largest exporter of fossil fuels, geopolitical developments will, in the short term, be the primary variable influencing fertilizer market prices. Fertilizer Enterprises’ New Energy Initiatives Gain Favor Notably, new energy industry projects previously launched by several fertilizer enterprises have begun yielding substantial results this year. For instance, potash producer Chenguang Mining stated in its third-quarter earnings preview that, in the first three quarters of this year, rapid growth in the domestic and international new-energy vehicle sector continued to drive robust demand for battery raw materials, causing sales prices of its lithium carbonate products to rise sharply year-on-year. Simultaneously, the company ramped up production and sales of lithium carbonate, resulting in substantial year-on-year increases in revenue and profit for its second-tier subsidiary, Chenguang Lithium Industry. Phosphate fertilizer producer Chuannuo also noted in its semi-annual report that its controlled subsidiary Guangxi Chuannuo has completed construction and commenced operations of its “Wet-Process Phosphoric Acid Purification and Fine Phosphate Salts Project” at its Fangchenggang production base in Guangxi.

Feasibility Study Report on Fertilizer Projects—Eco-Friendly Fertilizers Will Become the Future Trend

On September 10, urea prices stood at RMB 2,494 per ton, up 2.42% week-on-week. On the supply side, domestic urea operating rates averaged 70.73% this week, down 0.47 percentage points week-on-week. On the demand side, national compound fertilizer enterprise operating rates stood at 42.21%, down 0.93 percentage points week-on-week. Domestic compound fertilizer enterprises operate flexibly; some earlier pre-sold orders have been fulfilled, while follow-up new orders remain limited, leading to a decline in operating rates and subdued market trading activity. Consultancy firm ZhuoChuang Information forecasts that compound fertilizer demand is unlikely to improve noticeably next week, and enterprise operating rates will continue to decline. Urea prices and gross margins (RMB/ton), July 2016–2021 Urea operating rates, July 2016–2021 2. Phosphate Fertilizers: On September 10, monoammonium phosphate (MAP) prices stood at RMB 3,417 per ton, down 0.49% week-on-week; diammonium phosphate (DAP) prices stood at RMB 3,560 per ton, down 0.14% week-on-week. On the supply side, demand for MAP from domestic producers showed no notable improvement this week, while raw material prices remained persistently high. In addition, intensified atmospheric pollution inspections in certain provinces further pressured operating rates. Hubei Fengli suspended MAP production for maintenance; some enterprises reduced output—e.g., Henan Lingbao and Toyota halted MAP production, with restart timing undetermined; Anhui’s operating rates were slightly curtailed, and SierTe’s granular MAP production remains suspended; Sichuan-based enterprises Hongda and Longmang prioritized production of other products; Yunnan Hongtaibo halted production for maintenance. Monoammonium phosphate (MAP) prices and gross margins (RMB/ton), July 2016–2021 Diammonium phosphate (DAP) prices and gross margins (RMB/ton), July 2016–2021 Monoammonium phosphate (MAP) operating rates, July 2016–2021 Diammonium phosphate (DAP) operating rates, July 2016–2021 3. Potash Fertilizers: Domestic potash demand remained sluggish overall, yet prices edged upward steadily. As of September 10, the average price of potassium chloride stood at RMB 3,725 per ton, up 4.20% week-on-week; the average price of sulfate of potash stood at RMB 4,232 per ton, down 0.42% week-on-week. On the supply side, sulfate of potash producers continued to face sluggish sales; low-priced inventory entered the market for liquidity, widening the gap between high and low prices and dampening downstream procurement demand. During this period, enterprises strengthened risk control—besides offering discreet price reductions, operating rates also declined slightly. On the demand side, national compound fertilizer enterprise operating rates stood at 41.21%, down 0.93 percentage points week-on-week. Domestic compound fertilizer enterprises operate flexibly; some earlier pre-sold orders have been fulfilled, while follow-up new orders remain limited, leading to lower operating rates and subdued market trading activity. Potassium chloride price trends, July 2016–2021 Sulfate of potash price trends, July 2016–2021 4. Compound Fertilizers: Compound fertilizer prices declined slightly, with the national ex-factory price for 45% NPK (15-15-15) averaging approximately RMB 3,333 per ton, down 0.06% week-on-week. On the supply side, national compound fertilizer enterprise operating rates stood at 41.21%, down 0.93 percentage points week-on-week. Among regions, Anhui’s operating rate stood at approximately 54.05%, down 3.07 percentage points week-on-week—the largest decline. Domestic compound fertilizer enterprises operate flexibly; some earlier pre-sold orders have been fulfilled, while follow-up new orders remain limited, leading to lower operating rates and subdued market trading activity. On the demand side, market trading activity for compound fertilizers remained subdued this week.

Chambal Fertilisers invests in hybrid power facility

3 hours ago

Chambal Fertilisers acquired a 26% stake in a captive hybrid wind-solar power facility for up to ₹60 million to replace grid power with renewables. This investment supports sustainability objectives while aiming for substantial operational cost savings.

chemweek

2026-10-26

Chambal Fertilisers invests in hybrid power facility

Chambal Fertilisers invests in hybrid power facility

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