Fertilizer Trade Better than Expected
Year:2010 ISSUE:8
Click:321    DateTime:Nov.02,2010
Fertilizer Trade Better than Expected     

In 2009 China exported 8.848 million tons of fertilizers, down 5% year on year and imported 3.921 million tons with a decline of 35%. The combined volume of exports and imports fell 15.4% year on year to 12.769 million tons, and the combined value was US$4.499 billion, dropping 41.8%.  
    The smaller drop for exports are attributed to the loosen export constraints and the enhanced international competitiveness of Chinese companies. The export control policy in 2008 is the strictest historically, with the highest tariff of 185% for urea exports. The rush season tariff for urea export in 2009 was reduced to 110% and the off season tariff was 10%. Furthermore, the Chinese government has replaced the special export tariff with the 10% temp tariff for synthetic ammonia, ammonia chloride, calcium triple superphosphate and double nutrients compound fertilizers since July 1st, 2009. In recent years, China's chemical fertilizer industry developed fast with improved quality and lower cost.
   Urea exports in 2009 were better than expected. Market players had predicted that China would export 2 million tons of urea in 2009 with a drop of around 50% over 2008. However the actual exports reached 3.38 million tons, fell 22.5% only, better than expected.
   Exports of diammonia phosphate (DAP) was 2.07 million tons in 2009, hitting an all-time high and rising 154% over 2008. It means that China exported 20% of DAP it produced. Imports of DAP was 433 thousand tons, up 351%. The imported DAP is favored by farmers because of ensured quality, in spite of higher selling price.
   China exported 1.983 million tons of potassium chloride in 2009, falling 61%. The large reduction has not brought any impact on the local supply.