Although China is weaker than the
US in pricing power for DAP in the international market (Note: According to the
previous situation, China’s DAP producers or DAP traders were apt to follow the
contract price set by the US-based Phosphate Chemicals Export Association, Inc.
(PCEA) and India’s purchasers), China is still to become the main force in
global DAP market from June to September, 2012, according to CCM International’s
July issue of Phosphorus Industry China Monthly Report.
China and the US are the top two exporters of DAP
worldwide—accounting for 70% of the international market; while India
is the biggest importer of DAP in the world. In 2011, China and the US respectively exported 4.02
million tonnes and 3.97 million tonnes of DAP. Amongst the exports, most were
exported to India,
respectively reaching 2.103 million tonnes and 2.41 tonnes.
In general, China’s DAP producers
and traders would export proper export volumes of DAP according to the export
policy each year —increasing export volumes in low export tax season (the
details of China’s export tariff for DAP in recent three years could be seen in
page 6 issue 1, Vol.2: CTCSC continues to restrain export of phosphate
fertilizer, and in page 6 issue 2, Vol.1: Export tariff curbs urea and DAP
export in H1 2011).
Therefore, with the opening of
the window for DAP’s low tariff in China
from June to September of 2012, China
is bound to export large amounts of DAP during this period. Based on the export
situation during the previous year, nearly 64% of total was exported (Note:
There’s no change in the definition of peak season and slack season between
2011 and 2012).
Relatively speaking, the current
supply of DAP in Russian Federation
and the US
was tighter than that in the previous year.
Firstly, the yield of DAP in Russian Federation and the US decreased
relatively. During the first quarter of 2012, the US-based and Russia-based DAP
producers—The Mosaic Company and PhosAgro both cut their production.
Secondly, the US was seeing a
surge in domestic consumption of DAP, which will weaken its international
supply ability. According to the data from The Fertilizer Institute (TFI), the
strong demand for DAP in the US led to a low inventory in May 2012, which has
decreased by 27% month on month to 251,000 tonnes.
Contrary to Russian Federation and the US, China is expected to contribute
more force to the international market of DAP. In 2012, there’re nearly more
productivity excess of DAP in China,
because of the release of 1,000,000t/a new capacity during the first half of
2012.
As for the international demand
for DAP, it mainly depends on the prime purchaser—India which consumes over 50% of
the exported DAP worldwide.
It’s predicted that India’s import
volume of DAP won’t be less than that of last year, and is expected to remain
around 7 million tonnes according to the previous data.
Source: Phosphorus
Industry China
Monthly Report 1207
Content of Phosphorus
Industry China
Monthly Report 1207:
Phosphorus Ore
Company Dynamics: Wengfu Group
strives for improvement of self-sufficiency
Industry Dynamics: Rare earth
accompanying resources to boost value of phosphorus ore
Global Sight: Battle
for phosphorus resources grows in Russia
Yellow Phosphorus
Policy & Legislation:
Kaiyang's subsidy for yellow phosphorus producer to face challenge
Phosphate Fertilizer
Policy & Legislation:
Declined export guarantee money for DAP to relieve traders' pressure
Company Dynamics: China
BlueChemical to rank among forefront of phosphate industry
International Market Dynamics: China to become
main force for global DAP market from June
Policy & Legislation: Role of
phosphate fertilizer reserve stratagem is changing
Fine Phosphate Chemical
Industry Dynamics: APP attracts
investment from medium phosphorus enterprises
Company Dynamics: Hubei Xingfa appreciates
development of food-grade phosphate chemicals
… …
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.
About
CCM
CCM
is dedicated to market research in China, Asia-Pacific Rim and global
market. With a staff of more than 150 dedicated highly-educated professionals.
CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader
Information, Import/Export Analysis all through its new proprietary product
ValoTracer.
CCM
International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road,
Guangzhou 510070, China
Tel: 86-20-37616606
