On December 24 last year, the Ministry of Finance announced the 2019 import and export tariff rules, which clearly indicated that since January 1, 2019, Fertilizer, apatite, iron ore, slag, coal tar, wood pulp and other 94 commodities no longer impose export tariffs, then for compound fertilizer,
The most significant change is the ternary fertilizer export tariff adjusted from 2018 to 100 Yuan/ton to zero tariff. Since 2016, the export tariff of compound fertilizer has fully reflected the trend of gradual loosening from the price quota to the adjustment from the quantity quota to the zero tariff, although the ternary fertilizer accounts for a relatively small amount of compound fertilizer exports, but according to China Customs Statistics, 2019 1-March,
Nitrogen, phosphorus and potassium ternary compound fertilizer accumulated exports of 191,100 tons, an increase of 640.1% yoy, such a clear increase, is bound to have a small impact on the domestic compound fertilizer market. First, to ease excess capacity. As we all know, China’s total fertilizer production capacity has long been seriously surplus, the overall utilization rate of less than 40%, the elimination of export tariffs, not only conducive to alleviating the domestic surplus of compound fertilizer production capacity, but also to a certain extent to improve the international influence of China’s compound fertilizer products, especially in the domestic market competition increasingly fierce background,
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The increase of exports or will enhance the brand confidence of enterprises, through participation in international competition to enhance the quality of their own products, for the future stable development of China’s compound fertilizer market to lay a shot in the arm. Second, boost the domestic market. In the past two years, the domestic compound fertilizer market has always been in a depressed state, the production of raw materials fluctuations frequently, but compound fertilizer and agricultural products in the response is slow, enterprises themselves from upstream and downstream pressure, after the cancellation of the export of this road or domestic production enterprises another way out, but according to the current import and export market,
Export prices are much lower than import prices, blindly in exchange for low prices for sales is not a long-term solution, only enterprises take the initiative to improve product quality, there is a chance in the real international market to drive the domestic market. Finally, the export countries diversify.
It is understood that 2018 China’s ternary compound fertilizer exported to more than 70 countries and regions, including the main export destinations for Southeast Asia, such as Myanmar, Vietnam and other agricultural development-oriented countries; From the source point of view, mainly from Yunnan, Fujian, Jiangsu, Hubei and other places.
The implementation of zero tariffs in 2019 will also accelerate the promotion of ternary fertilizer exports to countries and regions along the belt and road, including China, a total of 65 such countries, with a population of 63% of the world, 29% of the world’s total economy and 35% of the world’s total foreign trade, which shows that the demand volume is very large. On the whole, the implementation of zero tariffs on exports is good for the compound fertilizer market, but because of the small base of compound fertilizer export in China, coupled with the frequent ups and downs of raw materials market and environmental protection, safety and other uncertain factors will long-term impact on the market, compound fertilizer enterprises will still face no small pressure.