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Is China beginning to close its P market?

October 15, 2010

An interesting new report from the Mosaic Corporation (the US’ 2nd largest fertilizer company) indicates that China is restricting its exports of phosphate fertilizers, in reflection of reduced domestic inventories.

link

The key quote from the Mosaic analyst:  “We believe [Chinese] officials will take whatever measures are necessary, including more restrictive export policies, to ensure adequate supplies of competitively priced phosphate for domestic farmers.”

Given that China comprises 35% of global fertilizer consumption, it’s important to watch what they’re doing, to say the least.

Another interesting item from this article:  “Mosaic, North America’s second-largest fertilizer producer, yesterday reported fiscal first-quarter profit that trailed analysts’ estimates after saying its long-term phosphate supply contracts restricted its ability to fully capitalize on price gains.”

Update: In December 2010 China applied an expanded export tax of 110% on fertilizers, including P.  LINK

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