Just after the National Day holiday, a reporter visited Shandong to investigate the current state of chemical fertilizer production. Representatives from Shandong Ruixing Chemical Group and Shandong Heze Tailong Chemical Co., Ltd. both expressed concerns about the severe impact of recent typhoons on their operations. They described how consecutive storms—Tailee, Kanu, Davi, and Dragon King—have caused prolonged rainfall across Shandong and neighboring regions, disrupting agricultural activities and significantly affecting the fertilizer market.
The continuous downpours have delayed autumn harvests and caused farmers to miss critical sowing periods, leading to reduced fertilizer demand. As a result, the fertilizer market in Shandong has experienced a sharp decline, with many companies facing their worst challenges in years. Stagnant sales, difficulty in repaying capital, and weak market demand have turned what should be a peak season for fertilizer use into a period of low activity. Many manufacturers are now experiencing an early "winter" in terms of business performance.
In late August, several typhoons hit the southeastern coastal areas, and the resulting heavy rains spread to Shandong, Henan, Anhui, and northern Jiangsu. In September alone, Shandong recorded an average rainfall of 180 mm—the highest since 1916. The excessive rain led to crop damage, reduced yields, and weakened farmers’ purchasing power. Even as the rain eased after the National Day, wet fields made mechanical harvesting difficult, forcing labor-intensive methods instead. Additionally, missed planting windows have further limited fertilizer usage.
With farmers using less fertilizer, manufacturers are struggling to maintain production levels. To keep cash flowing, many companies have had to lower prices, often selling at or below cost. This has led to a downward spiral in prices, with urea dropping from around 1,700 yuan per ton to over 1,500 yuan, below the national price ceiling. One sales manager calculated that a 150-yuan-per-ton drop in urea prices, combined with monthly production of 33,000 tons, resulted in nearly 5 million yuan in lost revenue for the company.
Ammonium bicarbonate prices have also fallen sharply, dropping by 50–60 yuan per ton to 440 yuan. The situation is especially tough for smaller fertilizer producers, who are struggling with high raw material costs and falling product prices. Many small-scale companies have been forced to halt production due to liquidity issues.
Moreover, the ongoing rainfall has disrupted winter storage planning. With harvests delayed and some crops unable to be planted, fertilizer producers and distributors are uncertain about future demand and pricing trends. Without clarity on winter storage strategies, it’s difficult for manufacturers to plan production schedules for the coming months.
Although the typhoon season has passed, the challenges facing Shandong's fertilizer industry remain significant, leaving many companies in a state of uncertainty and financial strain.
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