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The fertilizer products involved in the export tariff adjustment include: diammonium hydrogen phosphate, ammonium dihydrogen phosphate, mixtures of ammonium dihydrogen phosphate and diammonium phosphate, and partially phosphorus-containing compound fertilizers. Specific adjustments are shown in Tables I and II.
Since 2007, due to the international demand for diammonium as a whole has increased substantially, and the production of sulfur has decreased, the price increase has directly led to a substantial increase in the price of raw materials for phosphate fertilizers, and has directly promoted the rise in global diammonium prices. China first imposed a diammonium export tariff in June 2007, indicating that the Chinese diammonium industry will fully enter the oversupply situation, and imports will further shrink. At the same time, due to the large number of domestic companies exporting, the amount of fertilizer used in the autumn has become tense. As of December 31, 2007, domestic stocks have been less than 30% of last year, and the spring fertilizer shortage has been formed. In order to stabilize the price of diammonium phosphate and guarantee the farmers to use it in spring, the state adjusted the export tariffs of such products.
Due to the global supply of sulfur, it is difficult to reduce the price of sulfur in the short term and is expected to continue until 2008-2009. Therefore, it is expected that diammonium prices will be difficult to fall in the first half of 2008. If the price of diammonium raw materials cannot fall sharply, the price of diammonium will remain relatively high. The current adjustment of export tariffs can only ease the supply and demand of domestic diammonium, and it is difficult to change the long-term trend of prices. There is little impact on related companies.
Effects of Ammonium Dihydrogen Phosphate and Phosphorus-Containing Compound Fertilizer Adjustment on Industry
With the approval of the State Council, from February 15 to December 31, 2008, the export tariff rates on some fertilizer products were adjusted. Including: Provisional tariff rates for exports of diammonium phosphate (tax code), ammonium dihydrogen phosphate and mixtures of ammonium dihydrogen phosphate and diammonium phosphate (tax code number), from February 15 to September 2008 The tax rate on the 30th will increase to 35%; the tax rate of 20% will still apply from October 1, 2008 to December 31, 2008. For the export of temporary tariffs on some phosphorus-containing compound fertilizers (Tax Code No., 31055900, 31056000), a tax rate of 35% will be imposed from February 15, 2008 to September 30, 2008; from October 1, 2008 to December 31, 2008 A 20% tax rate is imposed on the day.