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Export of chemical fertilizers in the risk control
Source:China Fertilizer Net   Author:Pei Ling   Time:2010-07-13   Read:1452second  

        Our country's fertilizer industry in recent years the rapid development is obvious to all, not only feel more domestic counterparts, international trade also marvel. The rapid expansion of domestic fertilizer production, have to make every major manufacturer and traders pay more attention to exports. Since 2008, the state tariff regulation and control system so that fertilizer exports become more ups and downs of the fertilizer export business operations is also a higher demand.
        In fact, our level of international trade operations, and not as fast as the increase in fertilizer production, in addition to the middle peasants, and so on in a few large companies have the advantage of staff and financial resources with a considerable level of international trading company, other chemical fertilizers exports in operational risk control capacity remains to be rapidly increasing. As a member of the production enterprises, foreign trade operations by the domestic trade positions as a beginner is that the export of chemical fertilizers in the operation of business, it also encountered this or that problem, to sum up, hope you encourage each other.
1, first of all to change their concepts, awareness of international trade. Change the nature of any changes should be thinking, international business operations, establish awareness of international trade can not be separated. If you still use the concept of domestic trade to international business operations, will be punished. Domestic trade operations there are more irregular game in the international business would be difficult to apply. A department of foreign trade to make, not only by a small number of staff awareness of changes in foreign trade, and more need for top leadership and relevant financial and other sectors a full range of awareness of changes and related support.
        Second, from the long-term analysis of market conditions, focusing on the trend to grasp. Unlike the domestic business cycle, foreign trade business operation, short up short, flat, fast and controllable risks associated with small; if the completion of a vessel of fertilizer export business, from contract signing to delivery set in Hong Kong, to complete the shipment, to pay single settlement, the normal need 2-3 months, if the abnormal situation, not necessarily disposed of within six months. Therefore, the operation of foreign trade as a long cycle, the market difficult to predict the risk of return is difficult to avoid. In the rising market in the business all goes well, if the market decline, there may be unexpected problems.
Earlier this year of urea on the delivery of goods and bonded goods in advance of the port set, I am afraid not much can be profitable, the cost of delivery of goods at bonded area, bonded warehouses, excluding costs are FOB300 expensive stockpiling U.S. dollars, how many shipments in above 300? Port conditions for delivery of goods we should be more clear. Domestic and foreign prices of a vent miles. 
        Third, widening product correlation analysis, normalized to avoid price risk. Trade in bulk products must do more comprehensive test of the ability of products, such as urea to do export business, must pay attention to other movements in the prices of fertilizer products, such as phosphorus and potassium such as changes in the market, because these products in the market is linked . In addition, changes in the prices of fertilizer raw materials must also be a high degree of attention, this is also great influence on product market conditions. In addition other staple products such as oil and steel.
        D, consider all aspects, stop gap occurred. The success of a single business involves many aspects, a little neglect may lead to large losses. From offer to enter into contracts, remanded the letter of credit, stocking set in Hong Kong, shipping, up to single settlement system. Every detail does not allow for slack. Another good program, not necessarily perfect, there are many cases non-human energy and the.
        5, letter of credit is not money. To complete a single business, the most critical is the U.S. dollar to the home, or a day yet to come, will be unable to rest assured that we have a single one, paid the single week also saw the movement of the inquiries, banks, the other responded that we negotiate with our customers, that documentation problems, negotiating bank does not payment for the customer to return to duty. 
        The conduct of foreign trade of these years, so we obviously feel that with the domestic trade of the differences and the pressure, and in practical trade operations, Du Bing Bushi Many people have very Guifandean to do international trade rules. This gives us greater difficulties and challenges, forcing us to step up efforts to learn and with practice, quickly upgrade the quality of international Ye Wu, can only Shiyingguoji trend. (Pei Ling)

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