Light Storage Stability Of Pesticide And Fertilizer Price Subsidies To Increase Demand

Security of supply of chemical fertilizers, mainly through short storage of chemical

fertilizers to achieve, since 2005 the implementation of China's chemical light storage policy, the main varieties of light reservoir of urea, the total scale of the current storage than 1,100 short tons, accounting for 20% of annual output about.

HC Chemical Network Ministry of Agriculture, "State 8," and again stressed the guarantee supply of agricultural materials, indicating the country's future will be more emphasis on light storage policy enforcement. In addition, the income of peasants and fertilizer inputs has a clear positive correlation between the rising price of grain and farm subsidies continue to increase, grain farmers will increase their income, greatly enhance the enthusiasm of farmers to grow grain, thus promoting Pesticide And fertilizer needs.

Urea industry: by 2009, two months of urea production in China rose 3.5% in the first quarter, demand for urea and gradually into the season, the price of urea to maintain the upward trend overall, but also limit national policy on the abolition of fertilizer also contributed to urea prices. The current price of urea has entered a stable stage. Dynamic price-earnings ratio of urea industry in 2009 has reached more than 20 times, valuation is not dominant, we offer the industry "neutral" rating.

Pesticide industry: compared with 2008, this year will be more pests, for two main reasons: the snowstorm in 2008 by fewer factors affecting domestic pests, have resumed their growth this year; a year of drought year, and therefore in high pest. Disaster based on previous law, locusts, Spodoptera litura, bean borer, aphids and other pests are likely to pose a serious hazard for agricultural growth. Drought irrigation, the field moisture increase as temperatures rise, wheat stripe rust, powdery mildew, sheath blight, etc. will increase occurred. Pests will undoubtedly increase the demand for pesticide products. In addition, the state will increase this year, pesticide market order rectification, and thorough investigation of illegal pesticide businesses, speed up the highly toxic pesticides out of the market, which will promote the efficient development of low toxic pesticides. Current pesticide industry in 2009 has reached 24 times the dynamic price-earnings ratio is about a high valuation, we give the industry "neutral" rating.

Young farmers Chemical industry The company main products used for health, agricultural pyrethroid products Herbicide Current agricultural production permethrin 3000-4000 tons / year, with permethrin 2000-3000 Health tons / year, glyphosate 10,000 tons / year. Among them, the company's domestic agricultural pyrethroid products occupy 30% of the market, the leading company for domestic agricultural pyrethroid, permethrin agricultural products are expected the next two years the company Sell Capacity will remain 30% growth. In addition, the company will add 30,000 tons in the first half of glyphosate production capacity, expected in 2009, 2010, sales were 30,000 tons, 40,000 tons. Expects earnings per share for 2009-2010 were 1.84,2.23 dollars to "buy" rating.

Light Storage Stability Of Pesticide And Fertilizer Price Subsidies To Increase Demand

By: weihua

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