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August 29, 2023

Major Measures to Ensure Supply and Stable Price of Fertilizer

Compound Fertilizer, Monoammonium Phosphate, Nitrogen Fertilizer, Phosphate Fertilizer, Potassium Chloride, Potassium Fertilizer, Potassium Sulfate


On August 25th, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Ecology and Environment, the Ministry of Commerce, the Ministry of Emergency Management, and the All China Federation of Supply and Marketing Cooperatives issued a notice on the "Work Plan for Stable Growth in the Petrochemical and Chemical Industry" (hereinafter referred to as the "Work Plan"). The Work Plan points out that the main goal of stable growth in the petrochemical and chemical industry from 2023 to 2024 is to maintain stable growth in the industry, with an average annual growth rate of industrial added value of about 5%. Among them, the fertilizer production (converted into pure amount) needs to be stable at around 55 million tons in 2024.





The work measures related to the fertilizer industry are summarized as follows:





Increase efforts in technological transformation. Implement energy efficiency and pollutant emission quota standards for key industries, target energy efficiency benchmarks and environmental performance grading at A-level, and promote energy conservation, pollution reduction, and carbon reduction transformation efforts in industries such as refining, ethylene, paraxylene, methanol, synthetic ammonia, ammonium phosphate, calcium carbide, caustic soda, yellow phosphorus, soda ash, polyvinyl chloride, and purified terephthalic acid. Various regions should accelerate the elimination and exit of outdated production capacity such as atmospheric and vacuum distillation units with an annual output of 2 million tons or less that do not comply with national industrial policies. Support the industrialization demonstration of non grain biomass production of bio based materials and associated organic fertilizers.





Promote intensive and concentrated development. Build an efficient and high-value utilization industrial base for phosphorus resources, accelerate the structural adjustment of traditional industries such as phosphorus fertilizer and yellow phosphorus, and enhance the supply capacity of phosphorus chemical products required for new energy, big food, and big health. Build a world-class salt lake industry base and improve the comprehensive utilization efficiency of resources such as potassium, lithium, and boron.





Carry out industry "three quality" actions. Carry out brand promotion weeks, industry quality management groups, and other activities, release industry brand development reports, and promote the improvement of quality and brand creation of large-scale products such as fertilizers, coatings, dyes, tires, and fluorosilicone materials. Support petrochemical production enterprises and users in the fields of textile, electronic information, mechanical equipment, etc. to establish a cooperative model of early intervention and continuous improvement in research and development, provide customized, functionalized, and specialized products and comprehensive services, establish and improve traceability systems such as electronic labels, achieve the transformation from selling single products to providing integrated solutions, improve collaborative manufacturing efficiency, and expand new space for consumption growth.





Strengthen international production capacity cooperation. We will steadily promote international production capacity cooperation in industries such as tires and fertilizers, and drive relevant technical equipment and engineering services to "go global". Encourage the construction of characteristic chemical industrial parks facing the markets of neighboring countries in areas with conditions, and form an efficient, coordinated, green, and stable supply chain system with neighboring countries and regions.





Improve the level of guarantee for key elements. Actively expand the supply channels of petrochemical raw materials, build a stable and diversified supply system, and orderly carry out the construction of overseas crude oil, potassium fertilizer, and natural rubber bases. Strengthen the supply guarantee of coal and gas for key products such as fertilizers, encourage major coal and gas users in petrochemical and chemical industries to sign medium to long-term contracts for production and transportation needs with relevant supply and transportation enterprises, improve the degree of performance of coal and gas contracts, and strive to ensure stable supply of production factors and reasonable prices.





Ensure the supply of fertilizer production. Implement the minimum production plan management for key fertilizer production enterprises, encourage sulfur and acid smelting enterprises, and phosphorus fertilizer production enterprises,

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