The latest news is that the same the urea export window period time, from the current 2,100 yuan (t price, the same below), the benchmark price upwards to 2,260 yuan lower than the benchmark price, levied tax at the rate of 2%. Adjustment of the tariff policy of the fertilizer market will produce what kind of impact it? 

The 2260 yuan declaration price (ex-factory price + shipping + port charges), this year's tariff policy, export tariffs of 14% (the U.S. dollar against the RMB exchange rate is calculated by 6.3), equivalent to U.S. $ FOB408. In accordance with the 2%, equivalent FOB365, U.S. dollars, a difference of $ 43. Customs price of 2260 yuan is equivalent to the National Urea average ex-factory price of 2,100 yuan, according to the recent years to see the trend of the international market price of urea, the price of $ FOB365 very competitive in the international market, therefore, the adjustment of the policy will be conducive to China the export of urea. 

Although the policy of positive urea exports, but really does not mean that the export volume and price. The export window period in July, the current market has little effect, but the the Chinese urea market is irrational market, as long as favorable, we will herd "fried prices. A tariff hike last year actually pulling the continuous rise of urea; international urea prices rose in April of this year, the the domestic also speculation set in Hong Kong market. 

Enthusiasm to do more urea slump in June and July of this year, so that dealers become very cautious, but as long as the above policies, will give the market quickly direction, and stimulate the market, the domestic price of urea will easily stand on 2000 yuan mark. 

From the current rumors tariff policy fine-tuning seems to have become a foregone conclusion. However, I still hope that the tariff policy continuity. 

From this year the trend of the domestic urea tariff no adjustment is necessary. Urea enterprises generally profitable this year, a lot of money, and the introduction of unnecessary bailout policies. The same time, such a policy is easy to lead the industry into a vicious cycle of "excess capacity - government stimulus policies - capacity expansion - excess production again" eventually caused losses to the industry. 

China's exports is the quantity, not the price. Chinese urea does not have a price advantage in the international market, China's urea export quantity, not the price. Reduce export tariffs, not necessarily be able to enhance the amount of exports, only giving benefits urea-importing countries, such as India. Chinese urea exports mess and no pricing power, I think that instead of lowering tariffs, it is better to raise tariffs, at least the profits stay in the country. 

Increase the risk of traders. Reduction of tariffs is undoubtedly conducive to the production enterprises, but greatly increased the risk of the dealer. This also reminded traders pay attention to risk.