On Dec.17th, 2012, China ’s Customs
Tariff Commission of the State Council (CTCSC) promulgated the export tariff of
2013. In accordance with the new export tariff, China is to loosen the export
policy on phosphate fertilizer (including ammonium phosphate (DAP & MAP)
and triple superphosphate). The new export tariff will take effect on Jan.1st,
2013, according to CCM’s latest
report, Phosphorus
Industry China Monthly Report 1301 issued on Jan.15, 2013.
Compared with the corresponding export
tariff in 2012, the new export policy of DAP and MAP highlighted the following
points:
—lowering the
export tariff, especially during peak season;
—prolonging
the export period for low export tariff from four months to five months;
—raising the
export trigger price.
The loosened export policy on phosphate
fertilizer mainly resulted from an air of depression spreading across China ’s
phosphate fertilizer market in 2012.
In H1 2012, most listed phosphate
fertilizer companies saw a decline in profit margin of DAP and MAP. For
instance, Anhui Liuguo Chemical Industry Stock Co., Ltd. (Liuguo Chemical)’s
profit margin in DAP dropped from 14.52% in H1 2011 to 5.25% in H1 2012. Like
Liuguo Chemical, Hubei Yihua Chemical Industry Co., LTD. (Hubei Yihua) also saw
a 37.12% year-on-year decline in profit margin of DAP in H1 2012.
In H2 2012, China ’s poor export performance in
phosphate fertilizer casted another shadow over domestic phosphate fertilizer
firms.
In general, both in short run and long run,
the loosened export policy is bound to benefit China ’s phosphate fertilizer
market.
In the short term, China ’s export
tariff adjustment for phosphate fertilizer shored up the confidence of
phosphate fertilizer firms and reversed the falling price for phosphate
fertilizer. According to the data from China National Agricultural Means of
Production Circulation Association, China ’s wholesale price index for
DAP (CPPI) immediately bounced off the lows in one week after the release of
the new export policy on Dec.17th.
In the long term, China ’s phosphate fertilizer firms
would be motivated to export DAP and MAP in the high-tariff period of 2013 due to
the reduction in cost of export. Nonetheless, the real export situation of
phosphate fertilizer still depends on international market.
Table
contents of Phosphorus
Industry China Monthly Report 1301:
Headlines of Phosphorus Industry China Monthly
Report 1301
Annual Review of Phosphate Industry in
2012
Top five phosphorus industry events in
2012
Comparison between China ’s prime
phosphorus enterprises
Company Dynamics
Kailin Group completes construction of MDCP
project
Hubei Xingfa to continue phosphate projects
despite Dequest quits
Anti-dumping keeps plaguing types of China ’s
phosphate salts
International trade of phosphate chemicals
in Nov. 2012
Price monitoring of some phosphate
chemicals in 2012
Phosphorus Industry China Monthly Report, issued by CCM on 15th,
keeps providing the latest company dynamics related to China ’s phosphorus industry, and
market analysis on supply and demand, import and export as well as global
insight.
CCM is dedicated to market research in China , Asia-Pacific Rim and global
market. With 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.
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
Email: econtact@cnchemicals.com
No comments:
Post a Comment