The 14th
Homemade High Analysis Phosphate Fertilizer & Compound Fertilizer Trade
Fair (the Trade Fair) was inaugurated in Hefei City, Anhui Province on Nov. 9.
At the Trade Fair, the National Development and Reform Commission (the NDRC)
revealed that in the drafting of the fertilizer export tariff policy for 2014,
control of off-season and high season exports will be eased, according to CCM’s Phosphorus Industry China Monthly Report 1312.
Tu
Qiaohong, Deputy Director of Department of Trade, NDRC, stated that, while
drafting the new export tariff policy for 2014, policy makers are considering
reducing the export tariff of fertilizer by a large percentage on the high
season and by a small margin on the off-season. Export tariffs for phosphate
fertilizers (MAP, TSP and DAP) in 2013, were 80% on the high season (Jan. 1–May
15, Oct. 16–Dec. 31) and 5% on the off-season (May 16–Oct. 15).
Spring and
autumn are generally the high season for fertilizer use in China. Aiming to
relieve imbalances brought on by seasonal demand and continuous production, to
prioritize the domestic demand and restrict exports, and to stabilize domestic
prices in order to protect farmers against price surges during the high season,
the Tariff Policy Committee of the State Council (TPCSC) instituted different
tariffs on fertilizers (Urea, TSP, DAP and MAP), during both high and
off-seasons, on Dec. 1, 2008. The tariff is a sliding duty, levied according to
a benchmark price determined by China Customs.
Discussion
surrounding these tariffs' reasonableness has never stopped since their
implementing in the end of 2008. Although export tariffs had been decreasing
and the benchmark price had been on the rise around 2009, the aggravation of
fertilizer surplus over the past several years has amplified a general call for
adjusting the export tariffs. Due to widespread and intensive investment in the
domestic fertilizer industry, fertilizer supply (especially nitrogen and
phosphate fertilizer) were already capable of meeting the demand since 2006 or
so, and over the past several years, the industry has been plagued by
oversupply. Given the extreme pressure brought on by overcapacity in the
domestic market, manufacturers would be glad to see the reduction of the
special tariffs and to fully engage in competition in the world market. With
the overcoming of the past decade's short supply of fertilizer, the original
motives for implementing different export tariffs have lost their strength.
If the
phosphate fertilizer export tariff is reduced in 2014, it will definitely ease
much of the domestic industry's considerable stress. However, it will likely
lead to Chinese phosphate fertilizer pouring into the global market in larger
volumes. Dealers and manufacturers in other countries should, therefore,
exercise caution and develop business strategies accordingly. Overall, the
global situation of the phosphate fertilizer industry may be in worse shape in
2014.
Wengfu's
Chuanyandong phosphorus ore body began production in November
Integration
of phosphorus ore exploitation in Hubei Province achieved initial success
New
aluminum IMC membrane to be widely applied in the phosphorus industry
China's
phosphate fertilizer export tariff to be reduced in 2014
Luxi
Chemical's new urea sulfuric acid fertilizer plant succeeds in its first trial
The Fertilizer
Off-season Commercial Reserves Management Method to be revised
Wengfu
Group and Kailin Group to benefit in the long term from the improvement of Guizhou
Province's water transport
Tanzanian
phosphorus: an opportunity for Chinese enterprises
India to
continue levying anti-dumping taxes on China's phosphoric acid
Kailin
Group's new multi-purpose TSP device achieved projected output and standard in
November
International
trade of phosphate chemicals in Oct. 2013
Market
review of prime phosphate chemicals in Nov. 2013
Price
monitoring of phosphate chemicals in Nov. 2013 24
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.
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, and Consultancy Service.
For more
information, please visit http://www.cnchemicals.com.
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