4 ms·
I know it's just an example, but I still find it strange that the article doesn't even start to question why a US company orders fertilizer from China? I mean,
by rob74 5y ago
I know it's just an example, but I still find it strange that the article doesn't even start to question why a US company orders fertilizer from China? I mean, the production of labor-intensive and relatively high value goods has moved to China, that kinda makes sense, but fertilizer is the exact opposite of that...
- JulianMorrison 5y agoBack in the day, it was cheaper to make it there and ship it halfway around the world, I imagine. And so long as everything connected up, there wasn't a problem.
- pietrovismara 5y agoThen perhaps we're approaching the collapse of an unsustainable system? The global supply chain has always seemed too fragile to me.
- flavius29663 5y agoEspecially since fertilizer is usually made from natural gas, something the US has a huge surplus of.
- Danieru 5y agoThe key word is aluminum. In this case ammonium phosphate. China has strong electric subsidies. Both in cash, and in allowing a high coal dependency. This means China has some of the lowest electricity rates in the world. Aluminum production costs are dominated by electricity costs. You can think of exporting aluminum as exporting electricity. Any business in china which can get permission to export an aluminum product has a license to print money. They are in effect reselling subsidized electricity.
- gshubert17 5y agoWhat's the connection between aluminum (Al) and ammonium phosphate (NH4)3.PO3 ?
- bombcar 5y agoMaybe they both have a's and m's in them.