Development of China’s mineral fertilizer industry
Click:11    DateTime:Nov.24,2023

By Hu Min and Chen Li, China National Chemical Information Center

After years of development, China has become a large fertilizer producer, making progresses in many aspects like varieties, concentration and nutrition of fertilizers. Despite overcapacity facing domestic fertilizer industry, researching fertilizers boasting comprehensive nutrition and good fertilizer effect – e.g. mineral fertilizers – is encouraged by the government.

China’s mineral fertilizers

China is rich in agricultural non-metallic minerals, but their application in agriculture is in an initial stage. The number of non-metallic minerals with proven reserves exceeds 140 in China, more than 20 of which are used in agricultural production (see Table 1 for details). In recent years, with the progress of related research, materials including silicon fertilizer, rare earth, peat, serpentinite, etc. have been utilized to diversify mineral fertilizers. And the development of new technology also advances the exploitation and utilization of agricultural minerals. Domestic mineral fertilizers – divided into 10 types, i.e., nitrogen mineral fertilizers, phosphate mineral fertilizers, potassium mineral fertilizers, etc. – include relatively mature products and emerging, natural mineral fertilizers.

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1) Relatively mature mineral fertilizers

* Agricultural calcium ammonium nitrate and calcium nitrate 

– They are both required to be registered in China, where there are 36 producers (including two foreign firms) of the former and three manufacturers of the latter, according to data from the Ministry of Agriculture and Rural Affairs. The number of registered agricultural calcium ammonium nitrate is 37, and that of calcium nitrate is three. Figure 1 shows China’s calcium ammonium nitrate related information during 2020-2022.

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Figure 1 China’s calcium ammonium nitrate related information during 2020-2022

Given stable supply of raw materials, Shanxi accounted for 78% of domestic calcium ammonium nitrate output in 2022, far exceeding the combined held by the other six production areas (see Figure 2 for details). Around 30%-40% of domestic calcium ammonium nitrate has been exported in a long term. However, domestic sales soared in 2022, due to fast-growing capacity of calcium ammonium nitrate, export share saturation and export restrictions (see Figure 3 for details).

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Figure 2 Proportion of calcium ammonium nitrate output in 2022 (by provinces)


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Figure 3 Proportion of calcium ammonium nitrate export volume and domestic sales                                                      during 2020-2022

* Calcium magnesium phosphate fertilizers 

As a kind of China’s major phosphate fertilizers in the past, calcium magnesium phosphate fertilizers are mainly produced in Yunnan, home to seven producers taking up 70% of domestic capacity, and Hubei, home to more than 13 producers – two provinces both enjoying abundant phosphate rock resource, which, together with relatively low prices of calcium magnesium phosphate fertilizers, is closely related to calcium magnesium phosphate fertilizer production. Figure 4 shows China’s production and marketing of calcium magnesium phosphate fertilizers from 2020 to 2022.

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     Figure 4 China’s production and marketing of calcium magnesium phosphate             fertilizers from 2020 to 2022

With output of high-concentration phosphate fertilizers growing, capacity, output and enterprise number of low-concentration phosphate fertilizers, principally calcium magnesium phosphate fertilizers, have all plummeted. However, in recent years, calcium magnesium phosphate fertilizers have received attention, mainly because of properties like multiple nutrient elements and alkalinity, helping apparent consumption remain a relatively stable level of around 800 000 tons. Domestic output of calcium magnesium phosphate fertilizers, mainly used in rice and sugarcane, fully meets domestic demand. Import volume and export volume are both small.

* Potassium magnesium sulphate 

Potassium magnesium sulphate is required to be registered in China. The number of domestic registered potassium magnesium sulphate products reaches 13, and that of registered producers is nine (include one foreign producer)– boasting a combined capacity of 650 000 t/a, according to data from the Ministry of Agriculture and Rural Affairs. In the past three years, import volume of potassium magnesium sulphate has stayed at around 100 000-120 000 tons, and a small amount has been exported (see Figure 5 for details). Potassium magnesium sulphate producers are mainly troubled by inadequate transportation, and unstable quality of products from small and medium-sized fertilizer plants is also an obstacle to demand growth of potassium magnesium sulphate.

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   Figure 5 China’s production and marketing of potassium magnesium sulphate            from 2020 to 2022

* Single medium and trace element 

The number of registered single medium element fertilizers reached 188 and that of single trace element fertilizers 14, both in 2022, when 141 medium element fertilizer enterprises (including 31 foreign firms) were registered, and eight trace element fertilizer companies were registered, according to the data from the Ministry of Agriculture and Rural Affairs.

* Soil conditioners made by minerals

Soil conditioners have been taken into fertilizer registration. Up to now, the number of registered soil conditioners producers reaches 130, and that of registered products is 228. The number of registered producers of soil conditioners made by minerals currently reaches 100, and that of registered products is 114. Growing around 10% annually in the past three years, domestic output of soil conditioners made by minerals reached 3.6 million tons in 2022 (see Figure 6 for details). The production scale of domestic soil conditioners producers is relatively small, with a capacity of less than 200 kt for about 80% of producers.

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Figure 6 China’s output of soil conditioners made by minerals from 2020 to 2022

2) Emerging, natural mineral fertilizers

In spite of disadvantages like staying at an initial stage, lack of scale effects and fixed markets, etc., emerging, natural mineral fertilizers have greater potential than traditional, mature products, as the former emphasizes more on natural property of raw materials: utilizing minerals without complicated processing.

Characteristics and development obstacles

China’s mineral fertilizers are characterized by: 1) natural raw material minerals; 2) multiple elements including phosphorus, potassium, calcium, silicon, sulfur, iron, zinc, manganese, boro, etc.; 3) multiple functions like improving soil, raising yield, being pollution-free, etc.; 4) more environmentally friendly production processes. Compared with other fertilizers, the manufacturing technique of mineral fertilizers is more simple, environment-friendly and green, without complex processing.

Meanwhile, domestic mineral fertilizer enterprises face many difficulties. First, weak support of related departments. Although most of natural mineral fertilizers belong to new fertilizers and are encouraged to develop, no direct, special support policy and funds are provided for the development of these fertilizers. Second is the poor product standards. Most innovative products are lack of registrations and agricultural standards, which will have certain impact on the development scales and applications of these new goods. Third is the promotion difficulties. In the actual exploitation and application of emerging, natural mineral fertilizers, there still exists problems such as small transport radius, weak strength of producers, lack of large-scale demonstration data of farmland, which leads to the low acceptance of farmers as well as difficult promotion and application. In addition, enterprises need to upgrade technologies to select proper raw materials, remove deleterious substances, heavy metals, etc.

Prospects

The nation’s need to increase grain production, double carbon targets, rising attention to scientific fertilization and higher requirements on farm product quality will all propel development of mineral fertilizers that are natural, eco-friendly and efficient, and have comprehensive nutrition.

More minerals will be utilized to diversify mineral fertilizers, which will be applied in more fields. Consumption of mineral fertilizers will increase. Despite absolute advantage of mature mineral fertilizers, emerging, natural mineral fertilizers will become new growth points of fertilizer enterprises. Figure 7 shows China’s output of mineral fertilizers from 2022 to 2025.

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           Figure 7 China’s output of mineral fertilizers form 2022 to 2025