Phosphate Fertilizer Industry Will Revive Continuously

The plan under discussion to boost petrochemical industry has an obviously supporting policy on phosphate fertilizer, especiallly in terms of injecting 9.6 billion yuan of subsidy on phosphate industry, postpone the adjustment on tax standard on phosphate fertilizer and the implementation of 17% VAT on phosphate fertilizer, and cancel special tariffs on export of phosphate fertilizer.

The cancellation of special tariffs on phosphate fertilizer is good to lower export cost and raise the price for domestic sales. At present, National Development and Reform Commission and Ministry of Commerce give the notice of cancelling the price control on phosphate fertilizer which have
exist for years.

Since the reviving of price on phosphate fertilizer in the end of 2008, the price rised by 30% and return to a reasonable price. The upper enterprise for phosphorus ore exploitation is mainly dealing in sales and storage, and plan to put into production in March. The pirce of phosphate ferilizer in processing stage return to 13000 yuan per ton and begins realize a little profit.With the spring ploughing coming, the demand for fertilizer and pesticide start up and the rise of phosphate price becomes to the highlight in chemical industry.

Generally speaking, the phosphate industry is still in a recession, but the leading enterprise can also make a profit by cost advantage.