News China VAT levied chemical fertilizers brought disappeared, a 5% depreciation of the renminbi has once again shocked the world. Nobody knows whether the renminbi will continue to depreciate, but the US dollar exchange rate of 6.4 yuan is equivalent to the urea export prices fell by 13 to 14 US dollars (t price, the same below), while the re-imposition of VAT fertilizer fertilizer prices also led to up $ 3-4.
Market supply and demand will ultimately affect the price of urea, however, Chinese urea producers set a market price and the depreciation of the RMB reduced export prices, thereby increasing the Chinese urea producers market competitiveness.
Taiwan, South Korea and Vietnam last week, buyers have to purchase Chinese urea, aimed at the completion of the shipment before formally levy VAT.
Last week the price of urea has not changed, because of China to India urea granules demand remains strong, FOB between 274 ~ $ 277, granular urea FOB southern China at around $ 280.
Chinese manufacturers do not want to give urea pricing in September, because it may have an impact on Pakistan's third tender, the amount of each bid is 50,000 tons of urea, beginning immediately.
If the Middle East urea exported to Pakistan, FOB impossible below $ 290, while Youzhny urea supply, it is difficult to find a one-time supply of 50,000 tons, so the main choice of Chinese urea became Pakistan, but the problem facing Brazil Chinese suppliers are reluctant to VAT rules promulgated before pricing.
Urea market is about to enter active September and October, Turkey, Canada and Thailand, urea demand powers in good condition due to the rains and outlook, demand is expected to rise.