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High prices attract exponential growth in fertilizer exports

2008-03-06View Original

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We learned from Ningbo Customs that in January this year, Ningbo Port imported 301 tons of fertilizers worth US$243,000. There were no imports in the same period last year.; During the same period, Ningbo Port exported 7,026 tons of fertilizers worth US$1.947 million, an increase of 17.6 times and 23 times respectively year-on-year. ; The main export product is urea.      After analyzing the data, Ningbo customs officers believe that since last year, the price of fertilizers in the international market has remained at a high level driven by oil prices. There is a huge gap between domestic and foreign prices, and companies can earn more profits by exporting, leading to a doubling of exports. In addition, domestic fertilizer production capacity continues to expand, and exports have become an important way to digest domestic excess production capacity.   This year, my country has levied seasonal export tariffs on urea in three stages. It has overall increased the urea export tax rate, making urea's export seasonality stronger. For example, the customs has increased the tentative export tax rates for diammonium hydrogen phosphate, ammonium dihydrogen phosphate and the mixture of ammonium dihydrogen phosphate and diammonium hydrogen phosphate from February 15 to December 31 this year. At the same time, it has imposed tentative export tariffs on some phosphorus-containing compound fertilizers. However, due to the recent increase in demand for agricultural products around the world, oil, natural gas, phosphate rock and other resource products have increased more than domestically. Against this background, international fertilizer prices remain high. It is expected that even if export tariffs are imposed, the international market will still have strong appeal, and large-scale fertilizer exports will continue.

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