The world's largest producer of phosphate fertilizers, Mei Sheng, said recently that the fall in global fertilizer prices and the shrinking demand are only temporary. The current situation has begun to improve.

It is understood that the continuous spread of the debt crisis in Europe, the continuing sluggish price of cereals, has made global fertilizer traders extremely cautious in purchasing fertilizers, and the fertilizer industry has fallen into a downturn in the near future after several quarters of booming.

The CEO of Megan stated that the uncertainties in the global economy made it quite gloomy in December 2011. Last week, the company announced that it will cut production by 250,000 tons before March 2012. However, he also stated that the global fertilizer industry has begun to turn for the better. Planters around the world, led by US farmers, have started to prepare for large-scale planting. It is expected that this good trend will continue. By then, the rigid fertilizer demand will prompt the fertilizer market to continue to improve. The relevant person in charge of the United States Sheng has recently announced that the company has no plans to further reduce production, it will not reduce the production of potash. The person in charge said that due to the increase in food demand in emerging markets and the impact of rising food prices, fertilizer demand is expected to continue to increase in the coming years. “Using the United States as an example, the corn planting area in 2011 was 91.9 million acres, and the 2012 planting area is expected to reach 94 million acres, which means that the demand for fertilizers will increase. This is also true in other parts of the world,” said the person in charge.

The CEO of Mason stated that “the price of phosphate fertilizer in the United States has rebounded by 10% in the past week and reached US$475 per ton. In 2012, the company’s phosphate fertilizer shipments are expected to reach 62 million to 64 million tons, which will reach a record high. Compared with 2010, The 60 million tons of shipments have increased, and more than 10 million tons have been added on the basis of 51 million tons in 2007.” He predicted that China’s exports of phosphate fertilizers may fall this year, and that the turmoil in the Arab countries will also be certain. To limit the local production of phosphate fertilizer, the global supply of phosphate fertilizer will be tight.

When talking about future market uncertainties, the US CEO said that the current South American crops are facing drought threats, the lack of snowfall throughout the United States in the Midwest, the soil will become extremely dry in the spring, when the grain production may be affected, Cereal prices are expected to remain firm throughout 2012. He attributed the company’s decline in profit in the third quarter to macroeconomic uncertainties and traders’ overly cautious procurement behavior.

It is understood that as of November 30, 2011, the United States earned $623.6 million in earnings this quarter, compared with a profit of $1.03 billion in the same period last year. Last year, US sales rose 13% to US$3.01 billion. It is reported that the company's performance in the same period last year included a $1.27 per share transfer of Fosfertil shares.

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