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With the increase in tariffs on urea and phosphate fertilizers, the fertilizer sector remains promising. Approved by the State Council, export tariff rates for certain fertilizers and raw materials used in fertilizer production were adjusted from January 1 to December 31, 2008. This increase in tariffs was expected; it was aimed at restricting exports from resource-intensive industries, rather than driving down fertilizer prices. The significant increase in export volumes this year, especially after the seasonal reduction in export tariffs in November last year, has led to a concurrent rise in the prices of nitrogen, phosphorus, and potassium fertilizers. Under such circumstances, **adjusting the export tariffs on fertilizers was also within our expectations. **The principle behind setting export tariffs is to make it unprofitable to export products that are highly polluting and energy-intensive, thereby restricting the development of industries related to these factors and essentially controlling their export trends. Since the fertilizer industry benefits from a range of preferential policies such as favorable gas and electricity prices, the policy of imposing high export tariffs on resource-based products like fertilizers is unlikely to change in the long term. Therefore, the increase in export tariffs on certain fertilizers this time is primarily aimed at restricting exports from resource-based industries and stabilizing the domestic market, rather than driving down fertilizer prices. Urea prices will continue to experience seasonal fluctuations; they will remain stable this year, with little possibility of further increases. This increase in the seasonal provisional tariff rate for urea exports will not lead to a significant decline in urea exports this year. The main reasons are as follows: first, urea prices in the international market remain high, allowing for substantial profits from exports; second, exports have become an important channel for dealing with excess domestic production capacity. This has led to a rapid expansion of domestic urea production capacity in recent years. Taking into account factors such as supply and demand, costs, the international environment, and **policies, urea prices in 2008 are expected to exhibit seasonal fluctuations, with ranges between 1600 and 1900 yuan per ton, while remaining generally stable. Raising export tariffs on DAP and extending them to MAP for the first time are both within expectations; phosphate fertilizer prices remain bullish. Thanks to favorable factors such as the high prices of international phosphatic ammonium last year, China’s exports of phosphatic ammonium not only did not decrease but actually increased. Since many companies improve the quality of monamines to a level close to that of diamines and export them under the name of monamines in order to avoid high export tariffs. The continuous rise in phosphate fertilizer prices is driven primarily by exports as well as the increase in prices of resources such as sulfur and phosphate ore. These two factors will remain in effect for some time to come, and phosphate fertilizer prices are still expected to rise. This time, **in addition to raising the export tax rate on phosphamide, a provisional export tariff of 5% has also been imposed on sulfuric acid and fuming sulfuric acid. This measure is also intended to restrict the export of sulfur within the country, in order to stabilize domestic sulfur prices and thereby reduce the cost pressures on businesses to some extent