An Analysis And Countermeasure Research On China Price-setting Power Of Imported Potash Fertilizer

Potash fertilizer is one of the commodities that our country should import in large quantities, as a strategic resource, it relates to our country’s economic security. With the process of modernization of our country agriculture, the dependence of international trade of potash fertilizer is high in our country, reaching to68%in2010. The increase in the price of our potash fertilizer import will impose a further cost burden on downstream gain industry, critically affecting the economic security of our country. It is of the importance practical significance for our country to win the pricing power of import of potash fertilizer and to maintain the total economic interests of China.This paper, with the method of combining quantitative analysis with qualitative analysis, studies the pricing power of the import potash fertilizer: to measure the pricing power of the import potash fertilizer by establishing a series of mathematical statistics; to analyze interaction of various factors that affect the import potash fertilizer by establishing the pricing model of supply and demand and game pricing model. The results of the study show that the bargaining power of China has its advantages as well as disadvantages in respect of import potash fertilizer: on one hand, compared with other purchaser, our country possesses the potash fertilizer production capacity, meanwhile, unified purchase channels is a bargaining counter in long single contract; on the other hand, both oligopoly, the characteristic of potash fertilizer market, and rigid demand of import potash fertilizer weaken the bargaining power of our country. The author puts forward suggestions on how to enhance the pricing power of import potash fertilizer of our country.This paper is divided into six parts. The first part mainly introduces the theoretical background and the significance of this topic, the research framework as well as the research approaches, meanwhile points out the innovation and the insufficiency of this paper. Related researches about the pricing power proposed by foreign scholars are introduced in the second part. The third part discusses the potash fertilizer international market and international potash fertilizer pricing system, in order to provide analysis of material for this paper. The forth part evaluates the import potash fertilizer’s pricing power of china in present stage with mathematics method proposing indicators for measuring the import potash fertilizer pricing power, which based on a large number of materials and data. The fifth part establishes economic model for analyzing various factors that effect on import potash fertilizer pricing power of China: on the one hand, from the perspective of market supply and demand, the pricing model of supply and demand should be established; on the other hand, from market participants’ behaviors’ perspective, game pricing model should be established. In the sixth part, on the basis of above analyses, the author brings forward some suggestions on how to enhance the pricing power of importing potash fertilizer of our country--------increasing domestic potash fertilizer production capacity, stabilizing international potash fertilizer supply as well as synthetically improving negotiation skills.