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China Cut Down Trade Deficit Against the U.S., which Would Bring Influence on Fertilizer Industry

China Cut Down Trade Deficit Against the U.S., which Would Bring Influence on Fertilizer Industry
Issue Time:2018-06-14

Recently, China and the U.S. have agreed to take effective measures to cut down trade deficit against the U.S. and increase agricultural product imports from the U.S. Although it is not directly related to fertilizer products, yet it would directly or indirectly influence domestic fertilizer market.    
 
The U.S. is a big fertilizer producer, consumer and exporter. Potash and compound fertilizers are main products exported by the U.S., but 
China’s MOP and compound fertilizer imports from the U.S. in 2017 only recorded 500 MT. In order to cut down U.S. trade deficit against China, potash and compound fertilizer possibly would be main products whose exports would be increased. The growth in potash and compound fertilizer imports from the U.S. brings competitiveness to other original countries, and also has direct influence on domestic fertilizer market.   
 
The value of agricultural product imports from the U.S. in 2017 was 24.116 billion US dollars. If the imports of agricultural products from the U.S. this year increase by 40%, the value of agricultural products from the U.S. in 2018 will ascend to 33.76 billion US dollars, and the products such as food oilseeds (soybean), grain (wheat, corn, sorghum), livestock and poultry products, fruits and dry fruits would be main ones whose imports would be increased. Increasing the imports of agricultural products from the U.S. possibly leads to a fall in prices of agricultural products, which would cut down planting margins and further curb the demand for fertilizer.
 
The growth in imports of fertilizer and agricultural products from the U.S. would force related companies to cut down production costs, improve production efficiency and cope with challenges and competitiveness actively.