Reports suggest that China is extending the "high season" portion of its export duty schedule next year to keep fertilizer in its borders.
Richard Kelertas, analyst with Dundee, said the proposed changes would extend the period of time where a 110% export duty would be applicable on fertilizers such as urea and diammonium phosphate by three months.
At present, the 110% rate applies between February and June. During the "low season" the rate plummets to 7%.
Kelertas said in a note, "With rising global demand for fertilizer reducing supplies and increasing prices, China is having a hard time committing to its grain self-sufficiency mandate and has had to import more than usual over the past several months."
Financial Post (Canada) reported this would be negative for domestic producers such as Hanfeng Evergreen, as its sales are exclusively within China and primarily in the hotly contested nitrogen sector.
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