Asia

摘要

CHINA: The 2011 export policy for finished phosphate fertilizers reportedly calls for the 110% export tax to apply from December 1, 2010 through May 31, 2011 and from October 1 to December 31, 2011. The off-season 7% export rate will supposedly apply from June 1 through September 30, 2011. This implies that the lower tax rate will only be in effect for four months in 2011 as opposed to five and a half months in 2010. Outside the four-month trading window, exports will only be possible from customs-cleared bonded warehouses at port, where availability will be significantly lower. Under the new policy, the domestic benchmark price for DAP and MAP has been set at Rmb3,400/mt FOB and Rmb2,900/mt FOB, respectively. This compares with the benchmark price at Rmb4,000/mt FOB for DAP and Rmb3,700/mt FOB for MAP under the 2010 policy. The lower export tariff during the off- season periods will only apply if prices for product sold do not exceed the benchmarks, as seen in 2010, with the rate to gradually increase once market prices rise above the government set price caps. The government is expected to announce full details of the new export policy next week.