China: Large producers attempt to limit exports

摘要

Large Chinese DAP producers said at an industry conference in Beijing this week that they plan to cut DAP production and hold off export cargoes until India had cleared some of its vast DAP stocks. There were no specific DAP production cuts announced but with the Chinese domestic season largely over, if the announcement holds true, there could be a significant cut in production from China during the second quarter. Larger phosphate producers in Yunnan and Guizhou were under pressure to reduce DAP prices to make sales in India as Hubei producers continue to offer lower DAP prices to Indian buyers to maintain cashflow. The Chinese domestic season is largely over and exports are beginning to build in line with increased DAP demand from India.