| Compound fertilizer contains at least two | | | | number of completed projects was 377, going up |
| elements of nitrogen, phosphorus and potassium. | | | | by 48% YOY. |
| Compound fertilizer with two elements is called | | | | Since the end of 2008, the global financial crisis |
| binary compound fertilizer while that with three | | | | broke out, which has also influenced Chinese |
| elements is called ternary compound fertilizer. | | | | compound fertilizer industry. The profits of this |
| Presently, Chinese farmers have got used to | | | | industry hit the record low. In 2010, the influence |
| applying N-P-K (nitrogen, phosphorus and | | | | of the financial crisis is weakened and the global |
| potassium) fertilizers and microelement fertilizers | | | | economy is under recovery. However, Chinese |
| instead of straight fertilizers. This significantly | | | | compound fertilizer industry still stays in the |
| raises the scale of Chinese compound fertilizer | | | | adjustment stage, difficult to achieve rapid |
| market. In 2009, the scale was about CNY 200 | | | | development in the short run. |
| billion. | | | | In recent years, with the development of Chinese |
| By the end of 2009, there were over 4,500 | | | | agricultural specialization, farmers are placing higher |
| compound fertilizer producers in China with the | | | | requirements on compound fertilizer for the |
| aggregate production capacity of over 200 million | | | | cultivation of high-end cash crops. Nitrogen |
| tons. In 2009, the production of Chinese | | | | fertilizers are quite popular with consumers. In |
| compound fertilizers totaled over 50 million tons. | | | | fact, most imported ternary compound fertilizers |
| Chinese compound fertilizer production mainly | | | | are applied in these high-end cash crops. |
| concentrates in Shandong, Jiangsu, Hubei and | | | | Despite the severe overcapacity in Chinese |
| Sichuan, etc. | | | | compound fertilizer industry, large quantities of |
| Compared with those formulations of soil testing | | | | ternary compound fertilizers are being imported |
| and formulated fertilization programs, Chinese | | | | every year. On one hand, these imported |
| current fertilizer formulations only possess the | | | | fertilizers can supplement the deficiency of |
| conformity degree of less than 3%. Most | | | | Chinese potash fertilizers; on the other hand, |
| compound fertilizer producers in China make their | | | | imported compound fertilizers dominate Chinese |
| formulations based on raw material prices and | | | | high-end market. |
| economic effectiveness instead of soil and crop | | | | It is forecast that Chinese ternary compound |
| demands. This results in excessive fertilizer | | | | fertilizer will sustain rapid development in the |
| formulations. The simple design and low cost of | | | | coming years. Compared with straight fertilizers, |
| formations lead to the blind expansion of Chinese | | | | compound fertilizers can better satisfy the |
| compound fertilizer production capacity. Though | | | | growth demands of crops; with the development |
| the production capacity is already under severe | | | | of Chinese agricultural specialization and scale, |
| surplus, it is still being expanded. In 2009, the | | | | especially in economically-developed areas, the |
| investment in Chinese compound fertilizer | | | | demand for high-efficiency, specialized and |
| manufacture industry totaled CNY 23.60 billion, | | | | functional ternary compound fertilizers will see |
| 39% increase over 2008; the number of | | | | prominent growth. Therefore, ternary compound |
| construction projects reached 589, rising by 28% | | | | fertilizer will become the mainstream in Chinese |
| YOY; the number of newly-started projects | | | | compound fertilizer market. |
| amounted to 464, growing by 31% YOY; the | | | | |