135% tariff in China equals 35% higher fert cost... who gets the 35% for those producing & selling outside China?
This is part of an article on fert. on my DTN
"...about half of all nitrogen fertilizer, and more than 70 percent of U.S. urea supplies, are now imported. So when China's recent earthquake knocked out some of the country's urea capacity, fertilizer buyers in Fort Dodge and Champaign felt the tremors. U.S. fertilizer leaders are nervously watching the Chinese government's moves to discourage fertilizer exports by slapping a 135-percent tariff on exported product earlier this spring. Already the government is signaling that it wants to keep more of its fertilizer capacity for domestic use.
"The risk of China embargoing fertilizer is not a far-fetched idea," Stegmann. "Nobody in the industry would be shocked if it happened."
This is part of an article on fert. on my DTN
"...about half of all nitrogen fertilizer, and more than 70 percent of U.S. urea supplies, are now imported. So when China's recent earthquake knocked out some of the country's urea capacity, fertilizer buyers in Fort Dodge and Champaign felt the tremors. U.S. fertilizer leaders are nervously watching the Chinese government's moves to discourage fertilizer exports by slapping a 135-percent tariff on exported product earlier this spring. Already the government is signaling that it wants to keep more of its fertilizer capacity for domestic use.
"The risk of China embargoing fertilizer is not a far-fetched idea," Stegmann. "Nobody in the industry would be shocked if it happened."
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