According to statistics, in 2016 the export of 8 million 830 thousand tons of urea, a decline of 35.79% in 2017, China abolished the export of urea tariffs, then in 2017 China's export situation is able to improve urea?
Cost remains high
Although the abolition of the export tariff of 80 yuan / ton, but by February 20th the exchange rate of $1 =6.87 yuan RMB, the cost of exports than before is only $11.6 / ton, it is understood that the international production part of urea unit costs only 120 dollars / ton, and even the new device into the Chinese are $180 / tons, a large gap between the cost of China if they are as can be imagined, urea, in the international market is also difficult to win the price war. In terms of exports, China still has a competitive advantage in terms of cost.
Country of destination
The high cost is a factor of its own. In terms of external factors, the capacity of the country of destination is increasing, and the country of purchase of the target country increases. It is reported that the late new capacity could reach more than 10 million tons, with huge production capacity Chinese urea market impact this will largely on the American market, the 1 quarter of 2017 will have new production capacity in 2016 compared with 2015 Chinese to its exports have declined 37.23%, in 2017 will probably continue to reduce; at the same time in recent years, Iran and other places have become the main competition in Chinese, 2016 India purchase situation, most of the sources are from Iran, this is different than in previous years, a direct result of 2016 Chinese exports to India was only 2 million 130 thousand tons, down 64.26%. The reduction in the degree of dependence on China by the target countries will lead to a greater degree of reduction in China's exports, which will hinder the increase in China's exports in 2017.
In 2017 Chinese export tariffs while cancelled, but only in the mind of good export, from a cost perspective, still not dominant, while increased in the country of destination self-sufficiency and supply can be selective, will also affect the number of Chinese urea export. It is expected that in 2017, China's export volume of urea will be difficult to have a big change, in order to enhance competitiveness, innovation still need to reduce costs.