China upset at increasing fertilizer prices
China is concerned about the “continually rising price of potash fertilizer,” according to a report by Cal Muyuan for ChinaDaily.com.
Government officials have behind the scenes mentioned their concerns that higher fertilizer prices could constrain the country’s agricultural development.
Fertilizer purchases are reported bi-annually, and China is paying $70 more per ton for the second half this year. That is reportedly a 17.5 percent increase from first to second half of the year. The reported price for second half of the year is $470 per ton delivered.
Chinese officials and government-run company managers are blaming price increases on monopoly of international supplies, reported Muyuan. They also see the monopoly situation and higher costs of fertilizer as being threats to their national food security.
Of course, there is no view of the inter-relationships of other imports and exports by China on world economies and countries.
China decided it hasn’t done a good enough job in negotiating and thinks a strategic fertilizer reserve system to be filled in the off-season of use, according to reports.