[Domestic News] Compound fertilizer: The export proportion of nitrogen, phosphorus, and potassium ternary fertilizers has increased

Introduction: Recently, the import and export data of compound fertilizers have been released, showing little change in imports but a significant increase in exports. Among them, the cumulative export volume of NPK ternary fertilizers reached 98,000 tons, accounting for 49.25%, an increase of around 12 percentage points compared to the same period in 2022. In terms of the expected direction of compound fertilizer exports, NPK ternary fertilizers may become the main force.

The import and export policies for compound fertilizers in 2023 will continue the policies of 2022, with zero tariffs for exports and implementation of legal inspections. The import quota is set at 3.45 million tons, with a provisional tax rate of 1% for imports within the quota. According to data from the General Administration of Customs of the People's Republic of China, the cumulative import volume of compound fertilizers in January and February 2023 was 135,900 tons, an increase of 0.89% compared to 2022, with NPK ternary fertilizers accounting for 98.68% of the import volume. The cumulative export volume of compound fertilizers in January and February 2023 was 199,000 tons, an increase of 339.29% compared to 2022, with NPK binary fertilizers accounting for 50.76% of the export volume.

Based on import and export data, the year-on-year growth rate of imported compound fertilizer was limited while the export growth rate was higher in the first two months of 2023. At the same time, looking at the export proportion of binary nitrogen and phosphorus fertilizer and ternary nitrogen, phosphorus and potassium fertilizer, imports still mainly consist of ternary nitrogen, phosphorus and potassium fertilizer, while the export proportion of ternary nitrogen, phosphorus and potassium fertilizer increased by about 12%. The focus will be on analyzing the export situation of ternary nitrogen, phosphorus and potassium fertilizer in the first two months of 2023.

1、Trading partners: Australia ranks first in exports.

In the first two months of 2023, the top five trading partners for ternary nitrogen, phosphorus and potassium fertilizer exports were Australia, Japan, Myanmar, the Philippines, and Malaysia. Among them, exports to Australia reached approximately 21,200 tons, ranking first as a new area. Exports to Japan totaled 17,000 tons, ranking second and increasing by 157.58% compared to 2022. Exports to Myanmar totaled 12,400 tons, ranking third and increasing by 588.89% compared to 2022.

2、Shipment origin: Shandong province ranks first.

In the first two months of 2023, the top five shipment origins for ternary nitrogen, phosphorus and potassium fertilizer exports were Shandong, Hebei, Yunnan, Jiangxi, and Chongqing. The shipment volumes of these five provinces and cities showed a significant increase compared to the same period last year. Among them, Shandong province ranked first with a cumulative export volume of approximately 39,300 tons, increasing by 1,090.91% compared to 2022. Hebei province ranked second with a cumulative sales volume of 13,300 tons, increasing by 129.31% compared to 2022. Yunnan province ranked third with a cumulative sales volume of 11,400 tons, increasing by 500% compared to 2022.

Zhuochuang Information's viewpoint:

Zhuochuang Information believes that domestic compound fertilizer companies have gradually improved their market performance through product and production enhancements. From the perspective of replacing imported fertilizers with domestically produced fertilizers in the southern region, the cost-effectiveness of domestically produced fertilizers has improved, which has squeezed the market share of imported fertilizers and constrained their imports. From the perspective of exports, the proportion of exports of NPK compound fertilizers has increased, especially to Australia and Myanmar, where trade flows have seen the greatest increase. In terms of expectations for the export direction of compound fertilizers, NPK compound fertilizers may occupy a larger market share and become the main force for exports.

(Source: Zhuo Chuang Information Click to view)