Copyright CCM International Limited

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1 Copyright CCM International Limited

2 Ready to See the Changes in China's Fertilizer Industry? During , China s fertilizer industry experienced fluctuations brought by the heavy blow of the global economic recession broke out in After a sharp drop in 2009, the growth rate of its market value started to climb, showing a V shape during these three years. It s on a track of recovery. In 2010, China s output of fertilizers reached approximately million tonnes, with a market value of USD76.26 billion. In the future, the uptrend is expected to continue. Another million ha. of highly effective and water-saving farmland is to be developed during the Twelfth Five-Year Plan period ( ), according to the Ministry of Water Resources of China, which would promote the demand for fertilizers. Figure: China s output and market value of fertilizer industry and their growth rate, % 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Market value, billion USD Output, million tonnes Growth rate of market value Source: CCM International Growth rate of output However, the fertilizer industry has been suffering from serious overcapacity since 2007, mainly phosphate fertilizer and nitrogen fertilizer. The situation gets worse due to the continuous investment in the past few years. For instance, the number of new projects in comes up to 50 or so, with total involved funds amounting to USD6.43 billion, mostly for compound fertilizer and synthetic urea and ammonia. Only the capacity of potash fertilizer is expected to witness an uptrend in the future. At present, this fertilizer is in short supply due to inefficient production technology and limited potash resources in China. To cope with the overcapacity, Chinese government has decided to restrain the capacity expansion. For example, Hubei Province stipulates that any application for phosphate and nitrogen projects shall not be approved during the Twelfth Five-Year Plan period. And similar projects are also very hard to obtain sanction in other regions in China as estimated. Moreover, inefficient productivity in the industry is facing elimination. The elimination of high-pollutive and energy-intensive production enterprises will be strengthened during the Twelfth Five-Year Plan period. Export is a conventional solution for overcapacity. China exported almost 25% of its phosphate fertilizer output in However, the government started to tighten its policies on fertilizer export in 2011 out of the consideration of resource conservation, mainly targeting ADP and urea. What s the coverage of this newsletter? Fertilizer-related industries and fields such as: Phosphorus industry, potash industry, coal industry, etc. Traditional energies such as electricity, water and natural gas Agriculture Macro economy, related policies and regulations in China Who need this? Companies with intention of investing in fertilizer business in China Data analysts or consultants wanting a deep insight into the market dynamics of fertilizer industry in China based on domestic fertilizer data 2

3 CCM International Limited Why to subscribe? To gain the latest information about supply, demand and sales in upstream and downstream industrial chain of fertilizer in China to enlarge business To focus on the current dynamics and development trend of China s fertilizer industry and explore what may lie behind the phenomenon so as to seize opportunities to start fertilizer business in China To learn about the changes of government policies and regulations on fertilizer industry and fertilizer registration in time to discover new business opportunities or minimize potential business risks To gain experts opinions about events happened, the latest policies and regulations What are the deliverables? PDF semimonthly newsletter, 24 issues per annum Access to online archives of all previous issues with downloadable files Research methodology Telephone interview and face-to-face interview CCM will interview event-related parties and professionals to gain first-hand information. Our selfdeveloped CRM system has accumulated a large number of contact information on professionals or players in China s agricultural industry. Questionnaire survey CCM will design questionnaires on events happened to collect related parties views and opinions by utilizing self-developed online survey system and analysis system. Independent research and self-owned database CCM has over ten years experience in researches on global agriculture-related industries, with over 30 reports published annually. CCM possesses a large quantity of data related to China s agricultural industry, which have been integrated in the self-developed database ValoTracer and created dozens of value chains. A department with over 50 full-time staffers is committed to maintaining the database. Paid experts CCM has established long-term business relationships with experts in each industry via payment or information offering, who would contribute stories or comments to CCM in return. Third-party data CCM will buy credible third-party data to facilitate our research.

4 CCM International Limited Main contents Perspective on Market (3-4 topics) Latest dynamics of key players in fertilizer industry Industrial macro analysis Analysis of macroeconomic environment and financial environment Comments from companies, associations, experts, consumers, etc. Planting Dynamic & Fertilizer Technology (1-2 topics) Planting dynamic affecting the supply and demand of fertilizers Introduction of new fertilizer technology and comments from companies and users Deep Analysis of Fertilizer-related Policies and Regulations (1~2 topics) Introduction of new policies affecting domestic fertilizer-related industries Analysis of impact on domestic fertilizer-related industries Comments from companies, associations, experts, consumers, etc. Expert Column (1 topic) Experts analysis of the latest events, policies and regulations Price Update (3 topics) Fertilizer-related upstream products Capacity, supply & demand of fertilizers and forecast Brief analysis of above data

5 CCM International Ltd. With in-depth domain knowledge, CCM has been dedicated to providing high quality Market Data and Primary Intelligence across agriculture,biotechnologies, life sciences, renewable energies, printing and packaging and specialty chemicals. It has established solid relationships with specialty chemical manufacturers, distributors, media, governmental agencies, universities and research institutions. In addition to rich information sources, CCM applies robust research methodologies to collect Primary Intelligence data, which is absolutely different from the secondary information available elsewhere. Tel: Fax: Address: 17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong Road Guangzhou, , P.R.China