Zero tariffs on potash help ensure fertilizer supply

On January 1 this year, China adjusted
the import and export tariffs of some commodities.
Among them, the import tariff of potash fertilizer was reduced from 1% to 0
.
The industry believes that although this move has a limited impact on the potash fertilizer market, it reflects China's great attention
to the problem of insufficient supply of potash fertilizer.
With the blessing of policies, China's potash supply situation may be more optimistic
this year.

According to the announcement of the Tariff Commission of the State Council, the potash fertilizer varieties that have reduced the provisional import tariff rate to zero include potassium chloride, potassium sulfate, potassium nitrate, potassium magnesium sulfate, halide, other minerals or chemical potassium fertilizers, a total of 6 HS code goods
.

Dai Li, a potash analyst at Jinlianchuang, believes that the policy emphasizes more on the issue of import costs, and roughly estimates that these six types of potash fertilizers will save $40.
37 million in import costs
in 2023.
Salt Lake recently said on the interactive platform that there is still nearly half of the current domestic demand for potash fertilizer, domestic production can not meet the demand, the adjustment of potash tariffs is conducive to reducing fertilizer import costs
.

Asia Potassium International previously said on the interactive platform that according to the current domestic potash market price of 3500~3600 yuan / ton, the tariff reduction of 1% has limited impact on the potash market, but the industry believes that this move is intended to alleviate the problem
of insufficient supply of potash fertilizer in China.

As the main channel for China's potash fertilizer imports, Sinochem Fertilizer Co.
, Ltd.
has repeatedly put forward proposals
to reduce or cancel the import tariff of potash fertilizer.
Chen Shengnan, deputy general manager of Sinochem Fertilizer Co.
, Ltd.
, said: "The tariff reduction can enhance the linkage effect of potash fertilizer resources in the domestic and international markets, and to a certain extent, it will help improve China's ability to obtain international potash fertilizer resources and alleviate the pressure of
insufficient domestic potash fertilizer supply.
" ”

For this year's potash fertilizer supply situation, Zhou Yue, executive deputy secretary-general of the Potash and Potash Industry Branch of China Inorganic Salt Industry Association, believes that the overall situation of potash fertilizer supply in China this year is more optimistic
.
Domestic potash fertilizer production enterprises will complete the target tasks in accordance with the annual production plan to ensure the basic supply
of domestic potash fertilizer.
At the same time, China's potash importers will also actively adjust the import plan according to the domestic supply and demand situation, and will later determine the timing and price
of this year's potash contract according to the international market situation.