The latest customs statistics show that in 2016 1 to April China's total export of mineral fertilizers and fertilizer 7 million 740 thousand tons, a decrease of 26.7%; cumulative export amount of $, down 39.8%. In the first few months of this year, China's monthly export of chemical fertilizers are negative growth, this year, the export situation is not optimistic.
2015 domestic exports of a total of 35 million 550 thousand tons of fertilizer, an increase of 20%, the export volume reached a record high. Why just a few months time, fertilizer exports have such a big change? Analysis of the industry, there are two main reasons: first, the weak demand for chemical fertilizers, a sharp decline in prices. The export a ton of urea than domestic prices low 100 yuan, export a ton of ammonium than domestic prices low around 500 yuan, export prices and domestic prices upside down obviously, export enterprises enthusiasm is not high. Two is the increasing production capacity of international fertilizer, the international fertilizer market competition is more intense. According to the International Fertilizer Association (IFA), 2016 the urea production capacity will increase 860 million tons, Nigeria, Iran, Malaysia and other countries have new urea plant put into operation; by the end of 2016 international fertilizer production capacity will be increased to 47.2m tonnes, including Morocco increased 180 million tons, Saudi Arabia increased 1.4 million tons; by the end of 2016 potassium chloride production capacity is expected to will increase to 87 million tons, the investment in a few years ago some potash fertilizer project put into operation this year, which 95% capacity increment from Canada and Russia.
In the face of severe fertilizer export situation, the industry hopes that the country can cut fertilizer export tariffs. Before the high tariffs on fertilizer is one of the important reasons is the fertilizer industry enjoy preferential policies, so the tariff set too high, but now with preferential tariff abolition of all, the abolition of all value-added tax preferential, preferential chemical fertilizer industry left no has, the fertilizer industry tariff reduction is imperative.