Not long ago, international financial institutions forecasted that China would adjust its urea export tariffs again based on international market price and import and export situation. Although this forecast has not yet been fulfilled, it still has aroused strong repercussions. Industry insiders believe that China’s fertilizer policy has attracted international attention. In the world’s rapid rise in energy and fertilizer prices, soaring domestic coal prices and multiple pressures on farmers’ affordability, a series of complete exports and prices should be established. The development of new mechanisms can ensure the healthy development of the fertilizer industry and benefit the farmers.
The characteristics of long-term production and seasonal use of chemical fertilizer products are innate. It is also one of China's characteristics to consider fertilizer prices in consideration of farmers' affordability. At the same time, the combination of domestic energy, fertilizer market and international market has become more and more close in recent years, and the rising prices of petroleum, coal, sulfur and fertilizer in the world have had a great impact on domestic fertilizer production. Under such complicated circumstances, the market mechanism for chemical fertilizers that has been used for many years has been severely challenged and requires a series of price adjustment and import and export control mechanisms adapted to the new situation.
Starting on April 20 this year, China increased its urea export tariffs to 135% to curb exports. However, with the rise in international urea market prices and demand, as well as rising prices caused by high costs, domestic enterprises could not abandon urea exports. It is understood that the current urea FOB price in the international market has approached 800 US dollars / ton, and in the first six months of this year, China's urea export volume still reached 3.776 million tons, an increase of 2.1 times. The export volume in May and June after the tariff increase was higher than last year. At the same time, the price of coal ton for chemical fertilizers in China has already exceeded 1,000 yuan, driven by the close to 150 tons of international thermal coal price. According to the relevant national regulations, the highest domestic urea ex-factory price is 1,725 ​​yuan/ton, but in the face of rising coal prices, this price is basically indecent. It is understood that the actual wholesale price of urea in the domestic market is about 2300 yuan / ton.
In the last two days of July, the China Nitrogen Fertilizer Industry Association held the first half of 2008 nitrogen fertilizer industry early warning ventilation conference in Xining City, Qinghai Province. It was learned that the Association of Chemical Fertilizers made a number of recommendations on the establishment of the fertilizer market mechanism. They hope to establish a reasonable and timely price adjustment mechanism; secondly, they hope to restore the supervision of coal prices for nitrogen fertilizers, increase the planned amount of key contracts and transportation frameworks for anthracite for chemical fertilizers, and control the price of coal to prevent the cost of nitrogen fertilizer products from continuing to increase substantially; Third, it is hoped that the mechanism of light storage will be perfected. It is suggested that the lighter storage task be tilted toward the production enterprises, and the industrial and commercial federation be actively developed to give full play to the role of production enterprises in light storage.
In August, more and more fertilizer dealers are in a position of dilemma whether to reserve urea. A dealer in the Henan Lankao area told the reporter that because of the price relationship, local farmers reduced the use of compound fertilizer this year when sowing maize, and the possibility of using urea as a top dressing was high. Urea should have a certain outlook. However, the current wholesale price of urea has reached 2,400 to 2,500 yuan per ton, which cannot be clearly seen in the long run, and it is difficult to purchase stocks.

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