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The reporter learned from the China Minmetals Chemicals Importers and Exporters Association that in the first half of the year China’s urea imports were 51.5 tons, a year-on-year decrease of 87.8%, and exports were 3.77 million tons, an increase of 203% year-on-year. Some industry insiders believe that although 100% of special tariffs were imposed earlier, high prices in the international market still attracted a large amount of domestic urea, and the head of the Information Department of the Nitrogen Fertilizer Association said: “Actually, since the country implemented special export tariffs on April 20, Urea exports have already been controlled.†She said that the implementation of export contracts has a certain lag, and the effect of special tariffs began to appear from June onwards. In June, China exported more than 200,000 tons of urea, accounting for only 4% of the monthly production. Around the average monthly average of around 700,000 tons in the first five months.
"At present, we have not yet seen the export data for July. We cannot assume that 135% of export tariffs have not yet come into effect."
Urea special export tariff geometry?
According to reports, due to the relative surplus of domestic production capacity, not long ago, the National Development and Reform Commission had considered reducing the urea export tariff in the fourth quarter. However, due to the recent high international urea price, long-term above US$800/tonne, driven by this price, even if the export tariff is levied at 135%, the domestic FOB price of urea will still reach 2,300 yuan/ton, and domestically. The actual factory price of the business is close.