Experts believe that speeding up market-based price reforms is a permanent solution. The reporter learned from the State General Administration of Customs on the 28th that even though the country continues to impose a 30% high tariff on urea exports, figures just released show that domestic urea exports have doubled. Experts believe that speeding up the market-oriented reform of the fertilizer price system is a permanent solution.
According to the latest customs statistics, in the first three quarters of this year, China exported 2.353 million tons of urea, which was 2.6 times more than the same period of last year, and the export amount was 660 million US dollars, an increase of 3.1 times. Among them, the growth of collective enterprises and foreign-invested enterprises is increasing rapidly. In the first three quarters, collective enterprises and foreign-invested enterprises respectively exported 482,200 tons of urea and 242,000 tons of urea, which increased by 4.9 times and 4.1 times respectively. During the same period, state-owned and private enterprises exported 736,000 tons and 393,000 tons, respectively, an increase of 1.7 times and 1.3 times. This year, India has become China's largest export market for urea. In the first three quarters, a total of 719,000 tons of urea was exported to China, accounting for 30.6% of China's total urea exports during the same period.
In order to curb the export of “two high and one capital†products, from January to September this year, the country continues to impose a seasonal provisional tariff of 30% on urea exports. However, high tax rates did not stop the rapid growth of urea exports. The reasons for the analysis are as follows. First, the domestic price of urea has continued to decline in recent years, and the average factory price has remained at 1,400 yuan/ton to 1,600 yuan/ton. This year, the price of urea in the international market continues to rise, and the urea price in the Gulf region of the United States is close to US$400/ton, which is still at the level of about US$350/ton. The large difference between domestic and foreign countries makes the export of urea still have profit margins even after a 30% tariff is levied. Second, in recent years, the domestic urea industry has gradually completed the transformation of “oil to coalâ€, and the urea production capacity has expanded rapidly. In the first half of 2007, China’s urea production reached 27 million tons, a year-on-year increase of 14.05%, but the country’s urea demand increased by only 5% over the same period. It is expected that there will be 2 million tons of excess capacity this year. Therefore, exports have become an important way to ease the pattern of domestic oversupply.
Experts believe that over the years, the state has been implementing policies such as tax cuts and low energy transportation prices for the urea industry, which has contributed to the continuous growth of domestic urea capacity. Once the prices of domestic and foreign prices are reversed, exports become irresistible. This undoubtedly aggravated the pressure of energy conservation and emission reduction in the fertilizer industry next year, and it is also not conducive to structural adjustment in the fertilizer industry. The fundamental policy is to speed up the market-oriented reform of the price system of the fertilizer industry in China from energy raw materials to products.
According to the latest customs statistics, in the first three quarters of this year, China exported 2.353 million tons of urea, which was 2.6 times more than the same period of last year, and the export amount was 660 million US dollars, an increase of 3.1 times. Among them, the growth of collective enterprises and foreign-invested enterprises is increasing rapidly. In the first three quarters, collective enterprises and foreign-invested enterprises respectively exported 482,200 tons of urea and 242,000 tons of urea, which increased by 4.9 times and 4.1 times respectively. During the same period, state-owned and private enterprises exported 736,000 tons and 393,000 tons, respectively, an increase of 1.7 times and 1.3 times. This year, India has become China's largest export market for urea. In the first three quarters, a total of 719,000 tons of urea was exported to China, accounting for 30.6% of China's total urea exports during the same period.
In order to curb the export of “two high and one capital†products, from January to September this year, the country continues to impose a seasonal provisional tariff of 30% on urea exports. However, high tax rates did not stop the rapid growth of urea exports. The reasons for the analysis are as follows. First, the domestic price of urea has continued to decline in recent years, and the average factory price has remained at 1,400 yuan/ton to 1,600 yuan/ton. This year, the price of urea in the international market continues to rise, and the urea price in the Gulf region of the United States is close to US$400/ton, which is still at the level of about US$350/ton. The large difference between domestic and foreign countries makes the export of urea still have profit margins even after a 30% tariff is levied. Second, in recent years, the domestic urea industry has gradually completed the transformation of “oil to coalâ€, and the urea production capacity has expanded rapidly. In the first half of 2007, China’s urea production reached 27 million tons, a year-on-year increase of 14.05%, but the country’s urea demand increased by only 5% over the same period. It is expected that there will be 2 million tons of excess capacity this year. Therefore, exports have become an important way to ease the pattern of domestic oversupply.
Experts believe that over the years, the state has been implementing policies such as tax cuts and low energy transportation prices for the urea industry, which has contributed to the continuous growth of domestic urea capacity. Once the prices of domestic and foreign prices are reversed, exports become irresistible. This undoubtedly aggravated the pressure of energy conservation and emission reduction in the fertilizer industry next year, and it is also not conducive to structural adjustment in the fertilizer industry. The fundamental policy is to speed up the market-oriented reform of the price system of the fertilizer industry in China from energy raw materials to products.
Fuel Dispenser,LPG Dispenser,Flow Meter Co., Ltd. , http://www.fueldispenserpart.com