"In the past, the fertilizer industry enjoyed various preferential policies, so the state imposed relevant tax restrictions on the export of fertilizer products to balance the development of the industry."With the elimination of preferential policies and the re-imposition of value-added tax, the production cost of chemical fertilizer enterprises has increased significantly. Therefore, it is necessary to eliminate the export tariff of chemical fertilizer and promote the healthy development of the chemical fertilizer industry."Wang ying, deputy director of the information department of the China phosphate fertilizer industry association, put forward the above Suggestions at the analysis meeting on the first three quarters of the economic situation organized by the China petroleum and chemical industry association on October 28.

Su jianying, director of the industry department of the China nitrogen fertilizer industry association, also suggested the abolition of export duties on urea.It is reported that in recent years, the cost of chemical fertilizers has risen sharply under the influence of multiple factors, such as the cancellation of preferential railway freight rates, the increase of natural gas prices, the market-oriented reform of electricity prices and the resumption of VAT collection.In the first three quarters, the domestic fertilizer market is not good, although the export volume has increased, but the export price has been falling.

According to the China nitrogen fertilizer industry association, the industry lost 770 million yuan from January to August.Su jianying stressed that although the loss situation is better than last year, but recently the price of urea has been falling, the current ton price in 1300 ~ 1400 yuan.Considering electricity prices, value-added tax and other factors, the industry is expected to have greater difficulties in the fourth quarter, the full year is still difficult to return to profit.

Mr Su said the price adjustment was the biggest factor affecting the nitrogen industry.After April 20, the electricity price of small and medium-sized enterprises increased by 0.1 yuan/KWH, resulting in an increase of 5.3 billion yuan in the total nitrogen fertilizer industry expenditure.After the elimination of all preferential electricity prices next year, the cost of the industry will increase by more than 6 billion yuan.VAT reinstated, the cost of urea per ton increased by 50~100 yuan.

In terms of phosphate fertilizer, the price of phosphate fertilizer increased from January to September compared with last year, but it is still lower than the average price in 2013.Wang ying also said that after the addition of value-added tax, phosphoric acid diamine ton price increased by an average of 130 yuan.The industry's profits in the first eight months were about 1.49 billion yuan, and the value-added tax alone will deduct about 1.2 billion yuan in the fourth quarter.

From January to September, the export volume of fertilizers increased significantly. The export volume of urea, ammonium sulfate and ammonium chloride was 9.539 million tons, 3.858 million tons and 743,000 tons respectively, up 18%, 35.4% and 114.2% year on year respectively.Total output of urea ammonium nitrate solution (UAN) was 400,000 tons, and export was 372,000 tons.However, from January to October, the average price per ton of urea exported offshore was 279 us dollars, which has recently been reduced to 250 us dollars.UAN export prices have also fallen to around $160 from $220 at the start of the year.Phosphate fertilizer exports increased 63.7%, and the average export fob price has now dropped to $430 from $460 in the middle of the year, and is expected to decline in the fourth quarter.

Wang said that although the elimination of the tax gap in the off-peak season has boosted exports, the industry's profitability has not improved significantly due to the low prices of products, the decline in the fob price of exports, the addition of value-added tax and the elimination of preferential electricity prices, and the pressure on the industry is still huge.