27 June 2011 10:22 [Source: ICIS news]
By Jody Pond and Amanda Zhang
SHANGHAI (ICIS)--Prices of di-ammonium phosphate in ?xml:namespace>
Producers have lowered their offers to the domestic Chinese market for 64% DAP to CNY3,150-3,400/tonne ($486.8-525.5/tonne) ex-works on Monday from CNY3,250-3,400/tonne ex-works last week, market sources said.
Yunnan Yuntianhua produced 4m tonnes of DAP last year, according to data from Chemease.
The DAP exports price cap on which a 7% tariff applies was cut to CNY3,400/tonne starting this month through September, from CNY4,000/tonne in 2010. Beyond CNY3,400/tonne, higher taxes will be charged on DAP exports, prompting Chinese producers to forego overseas sales, market sources said.
China's export prices for DAP are lower compared to other regions, according to ICIS data. (Please see table below)
The regulation is expected to whittle down China’s DAP exports by half to 2m tonnes this year from 3.98m tonnes in 2010, according to Chemease, an ICIS service in China.
($1 = CNY6.47)
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