<article><p class="lead">China's total processed phosphate consumption is estimated to fall by 2.52pc on the year in 2020 but recover slowly in 2021, according to Argus Analytics.</p><p>The country's total processed phosphate demand is expected to reach 15.5mn t P2O5 in 2020, with a year-on-year net decrease of 400,000t P2O5 as a result of losses in DAP and SSP demand.</p><p>The Chinese government's strict control measures to contain the Covid-19 outbreak, which started in January, put logistical constraints on fertilizer producers and farmers at the beginning of the spring ploughing period, resulting in a fall in phosphate demand.</p><p>But China's phosphate demand is expected to recover in 2021 on increased crop acreage. </p><p>China's ministry of agriculture mandated an increase in grain planting areas this year, including requiring rice farmers to plant two seasons of the crop, called double cropping, to replace some single cropping to ensure sufficient food supply.</p><p>A continuous recovery in the country's pig herd from the African swine fever will also boost feed production in China over the remainder of 2020 and in early 2021. And rising demand for feed crops, including phosphate-reliant cereals wheat and corn, will increase consumption of processed phosphates.</p><p>Argus Analytics is part of Argus Consulting Services, a division of Argus Media. The group's forecasts and analyses are separate and independent of Argus' news and price assessment business.</p></article>
