1. China's phosphate fertilizer export tariff to be reduced in 2014
Summary: Phosphate fertilizer export tariffs will likely be cut in 2014, and the ensuing larger
volumes of exports in 2014 may further impact the global market.
Tag: Phosphorus ore, yellow phosphorus, phosphate fertilizer, fine phosphate chemicals
The 14th Homemade High Analysis Phosphate Fertilizer & Compound Fertilizer Trade Fair
(the Trade Fair) was inaugurated in Hefei City, Anhui Province on Nov. 9. At the Trade Fair, the
National Development and Reform Commission (the NDRC) revealed that in the drafting of the
fertilizer export tariff policy for 2014, control of off-season and high season exports will be
eased, according to CCM’s Phosphorus Industry China Monthly Report 1312.
Tu Qiaohong, Deputy Director of Department of Trade, NDRC, stated that, while drafting the
new export tariff policy for 2014, policy makers are considering reducing the export tariff of
fertilizer by a large percentage on the high season and by a small margin on the off-season.
Export tariffs for phosphate fertilizers (MAP, TSP and DAP) in 2013, were 80% on the high
season (Jan. 1–May 15, Oct. 16–Dec. 31) and 5% on the off-season (May 16–Oct. 15).
Spring and autumn are generally the high season for fertilizer use in China. Aiming to relieve
imbalances brought on by seasonal demand and continuous production, to prioritize the
domestic demand and restrict exports, and to stabilize domestic prices in order to protect
farmers against price surges during the high season, the Tariff Policy Committee of the State
Council (TPCSC) instituted different tariffs on fertilizers (Urea, TSP, DAP and MAP), during
both high and off-seasons, on Dec. 1, 2008. The tariff is a sliding duty, levied according to a
benchmark price determined by China Customs.
Discussion surrounding these tariffs' reasonableness has never stopped since their
implementing in the end of 2008. Although export tariffs had been decreasing and the
benchmark price had been on the rise around 2009, the aggravation of fertilizer surplus over
the past several years has amplified a general call for adjusting the export tariffs. Due to
widespread and intensive investment in the domestic fertilizer industry, fertilizer supply
(especially nitrogen and phosphate fertilizer) were already capable of meeting the demand
since 2006 or so, and over the past several years, the industry has been plagued by
oversupply. Given the extreme pressure brought on by overcapacity in the domestic market,
manufacturers would be glad to see the reduction of the special tariffs and to fully engage in
competition in the world market. With the overcoming of the past decade's short supply of
fertilizer, the original motives for implementing different export tariffs have lost their strength.
If the phosphate fertilizer export tariff is reduced in 2014, it will definitely ease much of the
domestic industry's considerable stress. However, it will likely lead to Chinese phosphate
fertilizer pouring into the global market in larger volumes. Dealers and manufacturers in other
countries should, therefore, exercise caution and develop business strategies accordingly.
Overall, the global situation of the phosphate fertilizer industry may be in worse shape in 2014.

2. Table of Contents of Phosphorus Industry China Monthly Report 1312
Wengfu's Chuanyandong phosphorus ore body began production in November
Integration of phosphorus ore exploitation in Hubei Province achieved initial success
New aluminum IMC membrane to be widely applied in the phosphorus industry
China's phosphate fertilizer export tariff to be reduced in 2014
Luxi Chemical's new urea sulfuric acid fertilizer plant succeeds in its first trial
The Fertilizer Off-season Commercial Reserves Management Method to be revised
Wengfu Group and Kailin Group to benefit in the long term from the improvement of Guizhou
Province's water transport
Tanzanian phosphorus: an opportunity for Chinese enterprises
India to continue levying anti-dumping taxes on China's phosphoric acid
Kailin Group's new multi-purpose TSP device achieved projected output and standard in
November
International trade of phosphate chemicals in Oct. 2013
Market review of prime phosphate chemicals in Nov. 2013
Price monitoring of phosphate chemicals in Nov. 2013 24
Phosphorus Industry China Monthly Report, issued by CCM on 15th, keeps providing the
latest company dynamics related to China’s phosphorus industry, and market analysis on
supply and demand, import and export as well as global insight.
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