In China, the fertilizer industry is widely concerned because of its correlation with production safety of food supplies. Recently, the price of international fertilizer grows up in a large extent and domestic fertilizer manufacturers are enjoying a temporarily very good profitable time. A new tide in exporting of fertilizer is coming.
According to the newest statistics of China Phosphate Fertilizer Industry Association (CPFIA), the price of international fertilizer has been rising fast since July, which is a direct reason of recent double trading price (188 USD/ton) against that of July and the trend is going on. In the meantime, limited electric power supply and shut down of some manufacturers’ impact the price of complex ammonia to goes up in domestic market and most of them has exceeded 3000RMB/ton, which is due to the larger cost of production. Under the diploid fillips of cost push and warming of exporting situation, the price of compound phosphate fertilizer comes back from a low vale and begins to rise. However, higher fertilizer price gives a big pressure to downriver agriculture and the phenomenon has shown up.
In order to ensure domestic market supply and price stability, the adjustment of the current export policy is tend to be imperative. According to the analyzing of Agropages, domestic fertilizer market is under over-supply situation, an appropriate increase in fertilizer exports will help alleviate domestic fertilizer overcapacity situation. However, to boost domestic production of fertilizer cannot over rely on exports. Or it is bound to affect domestic prices of fertilizer so that the domestic supply and demand imbalance will turn to the opposite direction. The current situation of fertilizer exports will push Chinese government to establish a moderately tight tariff policy.
The seasonal differences of fertilizers’ custom may be canceled in future and adjusted to 30-40% in a unitive form. Times of July to September and middle of October to November are both active season for exporting. Rising custom from 7% to 30-40% in these seasons is certain to impact the amount of international order. And in the other months, the exporting quantity is not very big so it seems not working much for domestic fertilizer enterprises to reduce custom from 110% to 30-40%. Therefore, Agropages appeals to international buyers’ watching on the change of China’s fertilizer exports policy and grasp the best business chance.
Development and Reform Commission will hold a conference again according to fertilizer custom problem when the situation of custom’s adjusting will be clear. Agropages will keep eyes on the tariff policy of Chinese government and publish the latest report in time for the global customers and provide dynamic information for reference.
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Agropages is More than the only global online platform exclusively devoting to agrochemicals business with efficient marketing solutions, Agropages is professional and dedicated in agrochemical field. Agropages provides company displays, products as well as exhibitions for manufacturers in agrochemical industry. Agropages aims to help its users to benefit from the global agrochemical market with more professional and individual services as well as to help them as a media platform.