An Analysis On Export Cartels And China Pricing Mechanism Of Imported Potash

Potash is the main source of potash fertilizer required for agricultural production.As a large agricultural producer, China’s demand for potash fertilizer accounts for20%of the total consumption of potash fertilizer in the world. However China is in lack ofpotash resources, and has a higher dependence on the imported potash fertilizer, evenup to68%in2010. The key to ensure healthy development of China’s potash fertilizerindustry is to keep a stable and reasonable import price of potash. Therefore it may beof important practical significance to discuss what manner is more helpful for Chinesepotash importers to reach a reasonable price to protect the stable and healthydevelopment of potash fertilizer industry and ensure safe agricultural production andsustainable and stable growth of national economy of China.This article is composed of five chapters. Chapter I mainly give an introduction ofthe importance of potash in agriculture, the potash resources monopoly in the world,potassium deficiency and import situation in China, and the present potash pricingmechanism to explain the background and significance of the topic as well as ideas andmethods of the study, and points out the innovations. Chapter II may show us thestudies of scholars at home and abroad on the potash fertilizer industry and the pricingpower in potash fertilizers. Chapter III describes in detail the current situations ofpotash fertilizer industry in the world and in China, and the existing pricingmechanism of imported potash fertilizers to provide the materials for next-stepanalysis. Chapter IV based on the chapter III‘s analysis to know clearly about thepotash market monopoly characteristics, and the existence of potash export cartel.According to the analysis of the potash oligopoly market, makes the quantitativeanalysis on the pricing of potash fertilizers by using the export cartel pricing model,through the cartel pricing analysis of elasticity of supply and demand situation to knowthe reason to influence the import potash price. Through the study, we found that thechange of potash supply and demand situation at home and abroad influence thestability of cartel, and the change of supply and demand elasticity of export cartelpricing Chapter V proposes the policies and suggestions on enhancing China’s pricingpower in imported potash fertilizers, using antitrust measures on export cartel, increasedomestic potash supply, improve its self-sufficiency rate of potash fertilizer, pay attention on potash negotiating tactic, strengthen the border trade imports, to furtherperfect the resource strategy, comprehensive plan as a whole to improve negotiationskills...