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China fertilizer export tariff adjustments

December 16, 2014, the China Ministry of Finance released "2015 Tariff Implementation Plan." Cancel the program nitrogen, phosphorus export tariffs season season differences unified export duty to perform the annual tax or tax, potash export duties will not be adjusted. 2015, AP (ammonium and diammonium) annual export from the amount of taxable, tax is 100 yuan / ton; annual exports of urea from the taxable amount of tax is 80 yuan / ton; binary nitrogen and phosphorus fertilizer year round 5% export tariff; NPK annual 30%; potash export tariffs annual 600 yuan / ton.

Specifically, in 2015 the export tariff ammonium phosphate, urea and phosphorus fertilizer binary greater than the 2014 adjustment. AP off-season export tariffs increase over 2014 doubled compared with 2014 season export tariffs significantly reduced; urea off-season export tariffs doubled compared with 2014, the peak tariffs are significantly reduced. Nitrogen and phosphorus fertilizer in two yuan, while the elimination of export seasonal export tariffs compared with 2014 is also in the overall downward trend.

Companies generally optimistic about the new tariff policy orientation tends Market

The biggest change is that the new tariffs to cancel the off-season season window period is generally optimistic about the inside line. Deputy Secretary General of China Nitrogen Fertilizer Industry Association Colliers analysts believe that the new unified tariff rates throughout the year, the abolition of seasonal exports next year to achieve positive nitrogen. First, export enterprises planned layout will be more relaxed, reducing the chance of a second attempt to take advantage of the window of traders shorting the domestic market. For the full-year unified 80 yuan / ton export tax, although the 2014 off-season tariffs than 40 yuan / ton twice, but the annual average down is not high, a comprehensive look at more reasonable.

Faced with the new tariff adjustment, the domestic fertilizer production enterprises exhibited relatively calm and objective attitude. Minister of Guizhou Kailin limited liability company Market Nguyen Quoc Zhu said that the new tariff policy is a market-based fertilizer industry forward, more conducive to healthy competition between enterprises, benefit in the long run. He told reporters that with the implementation of the tariff policy, the market will not rule out the help of good speculation, fertilizer prices will rise, but overall, both the nitrogen fertilizer industry or industry, is still in overcapacity, the rise in prices is only temporary, as prices rise, industry operating rates will gradually increase, prices will gradually return. Overall, the new tariff policy is more conducive to the stability of the fertilizer market, the export situation, cancel seasonal, international buyers will re-examine the country's fertilizer market will operate according to the rhythm of the market, but it also can make the our fertilizer industry into the global market, making price volatility is reduced, which will help stabilize the industry.


Over the years, China has been the international export price of fertilizer importer of repression, in addition to the export policy implications, the more is the quality of Chinese fertilizer. Ze high that in order to enhance competitiveness, the primary task is to improve fertilizer quality, in the case of the same rules, and produce a better quality fertilizer, while improving the ability to fine operation in port logistics, cargo loading, etc., each link strictly control in order to increase the product's competitiveness in the international arena. This is also in the larger environment favorable circumstances, the core business of export competitiveness. In addition, in the current market environment, comply with the rules of the market, so that the integrity of business enterprises is an indispensable condition, only to meet product quality clearance, businesses play by the rules that the two most important factors in the export business. "cake "in order to gain more market share.

Nitrogen Association called: 2015 new export tariff for domestic enterprises to provide a favorable policy environment, domestic producers can hope to take the initiative to actively self-exports and reduce outside interference, while ensuring quality of export products, the ideal price and reputation lay foundation. Meanwhile associations promote corporate export plan ahead and layout, attention to the domestic market and reduce dependence on foreign markets, strict self-discipline. During the export, the association will be real-time monitoring of export prices and trends in the number of active coordination with various departments and do all kinds of situations early warning mechanism for the protection of domestic agricultural fertilizer and prepare the interests of farmers.

Chinese compound fertilizer Industry Association executive vice president Xiuxue Feng said release fertilizer export tariffs on exports is the result of various efforts, but overall, due to the global economic situation is not optimistic, so the next year's fertilizer market situation should also be cautious optimism . India is still the main export of the domestic fertilizer market, but India's fertilizer subsidy is mainly nitrogen fertilizer subsidies, fertilizer so there will be some demand for China's suppression. Crude oil prices have fallen by the impact of long-distance domestic fertilizer companies export a certain distance advantage. In the case of weak demand in the Indian market last year, domestic enterprises have actively explore Australia, Brazil, Southeast Asia and other markets, has also made some achievements, in the case of crude oil prices fell sharply this year, the Chinese fertilizer companies should seek greater market. With the adjustment of the new tariffs, export volume of domestic phosphate fertilizer business is expected to continue to increase in the next year, but the impact of the global slowdown in economic growth, it is expected the international fertilizer prices will not fluctuate significantly, even slightly lower, it is recommended that domestic fertilizer business caution next year's exports. Although in recent years, the export volume of phosphate fertilizer record highs, but the export price has also been pressure from traders, the main reason is the quality of fertilizer in the country next year full liberalization phosphorus export in the background, for the mitigation of phosphate overcapacity is an opportunity, but suggested the domestic fertilizer enterprises should also good quality, for better export prices in the domestic market to meet demand, and strive to achieve export opener.

At this stage, under the influence of winter storage and favorable tariff policy, the urea market rally, followed by a more brutal international competition. How to seize the initiative in this "world war", the next step should be to think about business. At the same time accelerating industry consolidation, elimination of the small and medium enterprises, the state should introduce more follow-up measures, only the industry reshuffle, changes in market structure in order to have a breakthrough, which is really good market.
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