Urea export volume stayed low level in spite of low tariff

By CnAgri2012-07-13 13:16:05 Print

Though urea exports enjoyed a low tariff from July on, urea export volume has stayed low recently. The current Russian urea export price is $350/MT (FOB), but China’s urea export price is as high as $385/MT (equal to RMB2,000/MT). As the producer’s urea price is above RMB2,100/MT at home, urea producers are inactive in exports.

Urea exports via Shandong accounted for 50% of the nation’s total last year. But urea stock at Shandong’s ports add up to only 400,000 MT currently, less than half of the same period of last year, symbolizing a dark prospect of urea exports this year.

Thanks to the drop of coal price, the cost of urea production is just RMB1,800 ~ 1,900/MT presently, suggesting some profit for urea producers. Considering the dull domestic market, producers may further cut price to boost exports.

From "China Fertilizer Market Weekly Report"