The Impact On Chemical Fertilizer Industry In The Process Of Market Opening

The development of Chinese chemical fertilizer industry has gone through for a century, and the achievement has been remarkable, making China the largest fertilizer producing and expending country in the world. Especially after the foundation of P.R.C., in order to satisfy the demand of chemical fertilizer in agriculture, the capital cost of chemical fertilizer accounts for more than 40% of the gross investment of chemical industry averagely in each economic construction period. From the point of view of production, the production cost and the selling price of chemical fertilizer will directly influence the enthusiasm of fertilizer producers. Moreover, the level of price is related to the use of fertilizer by the peasants, thus the national grain safety will be influenced. The major raw materials for chemical fertilizer production are rare resources such as coal, petroleum, natural gas, phosphorus ore and potassium ore. Therefore the development of chemical fertilizer industry has concerned the sustainable development of resource economy.After the accession to the WTO, the Chinese chemical fertilizer industry will have good opportunity for development as other industries. However, austere challenge must be faced at the same time. According to the promises made when accessing to the WTO, since December 11, 2006, China has allowed foreign dealers to build wholesale enterprises of chemical fertilizer, thus the research of the influence on chemical fertilizer market after opening is extremely urgent.The challenges chemical fertilizer industry must face after the accession to the WTO include: The first, the cancellation of fertilizer import limitation will make the competition in domestic fertilizer market more severe; The second, the market accesses of agricultural products and relevant fields will influence fluctuation of the gross production and consumption, and variety demand of chemical fertilizer as well; The third, the gradual opening of the field of chemical fertilizer distribution may further weaken the occupation rate of domestic chemical fertilizer in the market; Finally, the gradual cancellation of some preferential policies of chemical fertilizer manufacturers guarantees a notable increment of cost for the enterprises.The potential opportunities include: the overall adjustment of the structure of chemical fertilizer industry will be promoted, and the reformation process of the marketing system of chemical fertilizer will be accelerated. These are beneficial for the optimization of Chinese traditional fertilization and the improvement of management level of chemical fertilizer industry.Basing on the extensive investigations and research, this article analyzes the situation of the three main aspects: production, circulation and consumption, of Chinese chemical fertilizer industry, and the recent main issues in Chinese chemical fertilizer industry will be mentioned. At the point when Chinese chemical fertilizer market is totally unlocked, bringing Chinese chemical fertilizer industry into globalizing economy, it analyzes the influences brought by the change of supply and demand of international market on the production, consumption, trade and price of Chinese chemical fertilizer industry. This article also researches the influences on the further development of Chinese chemical fertilizer industry brought by the government macro adjustments and controls and the implementation of relevant policies.Research shows that China is the world's largest chemical fertilizer production and consumption country, but the international competitiveness falls far short of world-class level. The rapid development of chemical fertilizer solved the domestic industry while fertilizer use and grain production has played a tremendous role, but the industry's excessive competition triggered the industrial layout and product structure is irrational, backward technology, low utilization of the problem. In the course of industrial development, obvious restraint of resources has become increasingly. Therefore reasonable adjustment of industrial structure, speed up the introduction of chemical fertilizers and to improve the efficiency of market supervision is imperative.