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On April 9th, the National Development and Reform Commission, the Ministry of Commerce, and relevant ministries and commissions held a hearing in Beijing to raise the provisional tariff for export again. The NDRC stressed: In 2008, the Chinese government’s policy orientation was to increase tariffs, limit fertilizer exports, and adopt various Preferential measures to ensure the stability of domestic fertilizer prices.
The results of the tariff hearings: nitrogen, phosphorus, potassium, compound fertilizer, heavy calcium, and calcium carbonate were all increased by 100% on the basis of the original tariff, ie, 135% for nitrogen, phosphorus, and compound fertilizer, and 130% for heavy calcium, potassium and calcium. The ban on fertilizer exports was implemented until the end of 2008. It will be issued in the near future.
The dramatic increase in export tariffs on chemical fertilizers means that the country is actually banned from exporting chemical fertilizers, ensuring domestic agricultural production and ensuring domestic social problems. The nitrogen and phosphate fertilizer industry with a relatively large export volume is facing a greater impact. Therefore, we look at nitrogen fertilizer and phosphate fertilizer companies in the short term. .
For the potash industry, due to the serious shortage of potassium in China, and long-term dependence on large amounts of imports, the dependence of potash fertilizer on imports is as high as 70%. Therefore, it is of little significance to impose export tariffs on potash; on the contrary, the sharp increase in potash fertilizer prices in the international market will further strengthen the domestic market. Potash fertilizer companies' bargaining power, domestic potash fertilizer prices are also relatively large room for growth, the recent domestic potash fertilizer prices have increased from 3,300 yuan/ton in early April to 3,600 yuan/ton, and the profitability of related companies will further increase.
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