Along with the Weakening of Feel-Good Policies, 2018 China’s Fertilizer Exports Would Go Down

By CnAgri2018-07-25 13:57:18 Print In the first six months of 2018, China’s fertilizer exports reached 9.568 million MT, down 15.2% year on year. It was predicted fertilizer exports in 2018 would go down to 20 million MT, and the situation of fertilizer exports in 2018 is not optimistic. The weakening of feel-good policies would directly lead to a fall in fertilizer exports.   
 
Thanks to preferential policies of power, natural gas, VAT, railway freight for fertilizer several years ago, fertilizer production costs were low and had certain competitiveness on international market. Along with the cancellation of most preferential policies and the commissioning of low-cost fertilizer equipment on the international market, China’s fertilizer competitiveness has been reducing on the international market in recent years, especially urea. 2017 is the year that is best for fertilizer exporting, of which export tariffs of all N-fertilizer and P-fertilizer products all went down to zero, but fertilizer exports still declined.
 
NPK compound fertilizer export tariffs in 2018 was adjusted down greatly, from 20%(ad valorem collection) down to 100 RMB/MT (specific tariffs). However, NPK compound fertilizer is a small variety that is exported, the exports in 2017 only recorded 40,000 MT. Even if the exports in 2018 increase to 1 million MT, the influence on fertilizer exports still would be limited.