Guangzhou, Guangdong -- (SBWIRE) -- 09/21/2011 -- China's export tariff adjustments for urea and phosphate fertilizers curb urea and DAP export volume in H1 2011, according to CCM’s first issue of Phosphorus Industry China Monthly Report.
In H1 2011, China totally exported 4.75 million tonnes of fertilizers: DAP accounted for 642,000 tonnes and urea was 688,000 tonnes. As compared with that in the same period last year, DAP and urea export volume decreased by 14.1% and 55.8%, respectively. However, the other types of fertilizers, such as concentrated superphosphate and ammonium sulfate, saw fast growing in the export volume in the same period. In H1 2011, the export volume of these two types of fertilizers reached 935,000 tonnes and 883,000 tonnes respectively, surging by 112.4% and 59.5% year on year.
The enormous contrast is primarily attributed to the export tariff adjustments for urea and DAP/MAP in 2011.
To guarantee the supply in domestic market, China's government adjusted the export tariffs of urea and DAP/MAP, having been effective since Jan. 1st, 2011. The new export tariff regulation maintains the tariff rate for urea and DAP/MAP, while it shortens the period of slack season and prolongs the period of peak season for urea and DAP/MAP export.
Meanwhile, it turns down the export trigger prices of urea and DAP/MAP.
Based on the export tariff, the declining export trigger prices and the raising production cost, as well as RMB appreciation (has appreciated 3.6% from Jan. 1st to Aug. 31st), jointly erode the profits from urea and DAP/MAP export. Many enterprises, especially that without cost advantage (e.g. with own phosphorus resource), even lost in exporting urea and DAP/MAP. As a result, the export of urea and DAP fell in H1 2011.
In the rest of 2011, the export volume of urea and DAP is expected to keep downturn, with the raising production cost.
(Guangzhou China, September 16, 2011)
Source: Phosphorus Industry China Monthly Report
http://www.cnchemicals.com/Newsletter/PhosphorusIndustryChinaMonthlyReport.shtml
Content of Phosphorus Industry China Monthly Report 1109:
-Phosphorus ore
Global Insight: Investment on phosphorus ore upsurging worldwide
Industry Dynamic: Phosphorus-fluorine integrated industry emerging in China
Company Dynamic: Hubei Yihua strengthens phosphorus ore exploitation
-Yellow phosphorus
Global Insight: World less depends on China's yellow phosphorus
Policy & Legislation: China's yellow phosphorus industry to promote clean production technology
-Phosphate fertilizer
Policy & Legislation: Export tariff curbs urea and DAP export in H1 2011
Global Insight: Brazil's phosphate fertilizer industry attracts investment
Company Dynamic: Shandong Kingenta to develop phosphate chemicals in Weng'An County
-Fine phosphate chemicals
Company Dynamic: Double Dragons to develop TCP
Company Dynamic: Yoke Technology accelerates upstream extension
-Import & export
International trade situation of phosphate chemicals in July
-Price Update
Price monitor of some phosphate chemicals in August
Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.
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