Bioenergy Heat Raises Global Fertilizer Prices
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According to the latest statistics from the State Customs, the country imported 6.46 million tons of fertilizer in the first six months of this year, worth about US$1.51 billion, up by 23.5% and 32.5% respectively over the same period of last year. This is just a microcosm of the rise in global fertilizer prices. It is understood that the upsurge in the development of bioenergy in countries represented by the United States has greatly increased the demand for chemical fertilizers and prompted the price of global fertilizers to rise sharply.
Global oil tensions have prompted countries to turn their attention to the development of bio-energy. According to statistics, bio-energy production in the United States has reached more than 10 million tons and continues to increase. The United States plans to increase the proportion of bio-energy added to petroleum products used in transportation in 2012 to more than 7%. The EU plans to add 5.75% of bioenergy to transportation within 10 years. Japan plans to increase the proportion of bioenergy added to 10% in the next 10 years. In the next 10 years, Brazil will increase the proportion of bio-energy to 20% to 25%.
The development of bio-energy has greatly stimulated the demand for corn-based crops. At present, corn has been transformed from traditional food and feed industry raw materials into starch, lysine, fuel ethanol and other fields of industrial raw materials, its growing area in various countries has also expanded. At present, the corn planting area for the production of biofuels accounts for 20% of the total corn planting area. It is expected that this proportion will increase to 35% in the next 3 to 4 years. Last year, the actual processing capacity of the major corn processing enterprises in northeastern China exceeded 10 million tons. Affected by this, the demand for global fertilizers has continued to rise, rapidly increasing the price of international fertilizers. The price of DAP in the United States in Tampa has increased from 256 US$/ton in early January 2007 to 422 US$/ton in late March, an increase of up to 65%; U.S. Gulf urea prices have risen from 220 U/ton in early November 2006. By the end of March 362 US dollars / ton, the same increase as high as 65%.
Some domestic experts pointed out that bioenergy is a good alternative to fossil fuels, and it can also stimulate the development of fertilizers and other related industries. However, chemical fertilizers are high energy-consuming industries. The more they produce, the more energy they consume. In order to save energy and consume another energy source, the balance between benefits is worthy of careful consideration by the human society.
It is also understood that since the beginning of this year, global coal, electricity, gas and other energy prices have faced upward pressure. In order to prevent the outflow of energy, some countries have successively adopted restrictions on chemical fertilizer exports. Countries such as Egypt and Indonesia restrict urea exports.