First, the production capacity is too large. After several years of expansion, the production capacity of potassium sulfate sharp increase expected this year, production capacity exceeded one thousand tons, while the annual demand of less than 400 million tons, resulting in excessive competition.
Second, low fruit prices. Mainly used for the production of potassium sulfate compound fertilizer, as well as some direct administration, mainly for fruit, vegetables and other cash crops. In some places this year watermelon purchase price of only 0.4 to 1.0 yuan / kg, affecting farmers, fertilizer enthusiasm.
Third, fertilizer manufacturers started to rise slowly. In accordance with the practice in previous years, it has entered the peak of the fall fertilizer production, but this year prepared fertilizer dealers cautious attitude, leading fertilizer manufacturers started to rise slowly, currently only about 50% potassium procurement always tepid.
Fourth exports. Last year and the year before China has made a breakthrough in the export of potassium, the annual export volume of over 60,000 tons, from the previous net importer to a net exporter. But this year’s poor international market demand, export potassium severely hampered in the first half of this year exported only 12,700 tons of potassium sulfate, up sharply down 78.7%, while imports up to 3.3 million tons, up 51.86 percent, the re-emergence imported in quantities of exports the amount of health, exacerbated the domestic market supply and demand.
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