From January to September this year, Jiangsu Port exported a total of 205,000 tons of diammonium phosphate, valued at 76.41 million U.S. dollars, an increase of 25.8 times and 34.2 times from the same period last year. Export prices have risen sharply. The average export price of DAP from January to September this year was US$372.3/ton, which was 31.4% higher than the same period of last year.
According to the analysis, the bio-energy boom represented by the United States has stimulated the demand for corn and other crops, and drastically increased the demand for fertilizers. Raw material costs and rising international shipping prices also contributed to the rise in the price of diammonium phosphate. Judging from the current situation, plus 20% of the tariffs, the export price of diammonium phosphate is still much higher than the domestic market price of 2,000 to 2,300 yuan/ton.
Experts said that there are two major hidden concerns behind the surge in exports of diammonium phosphate.
First, diammonium phosphate is a resource product, and its large export volume means the loss of phosphorus resources to some extent. The recoverable reserves of China's phosphorus resources are falling sharply. Phosphate rock has been listed by the country as one of the minerals that cannot meet the needs of national economic development after 2010.
Second, the large export of diammonium phosphate may lead to blind expansion of the industry. Since 2005, the annual production scale of high-concentration phosphate and compound fertilizer projects in China has been more than 600,000 tons, or even millions of tons, and there has been signs of overheating. According to statistics from the China Phosphate Fertilizer Industry Association, at the end of 2006, the domestic total production capacity of diammonium phosphate was 9 million tons, and this year's net increase in production capacity will reach 2 million tons. If the construction boom triggered by large-scale exports does not retreat, once international demand declines, it will inevitably cause a serious surplus of production capacity, and companies will enter vicious competition.
Therefore, experts propose to further strengthen the state's macro-control, control the scale of fertilizer exports, give priority to ensuring the supply of the domestic market, and guide the rational development of the industry.
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