China National Chemical Information Center Fax: 86 10 64437116 Tel: 86 10 64444102

China Fertilizer Market

Volume 8 Number 15
April 22, 2008
Fertilizer Department, CNCIC Week
Focus 2
CFMW
Potash Supply Tight in 2H 2008
Publisher:
China National Chemical
News Flash 2
Information Center
A special Tariff of 100% on Fertilizer Exports

No.53 Xiaoguan Street GDP Remained Strong While CPI Surged in 1Q

Andingmenwai, Beijing, China's Customs Giving Priorities to Farming Materials Business
100029 P.R.C
Trade News 4
Managing Director:
Chen Li Urea Players Wait and See
Phosphate Export will be Curbed
Chief Editor:
Lynn Wang Potash Trade is Slow
Sulfur Prices still Surge
Associate Chief Editor:
Christina Ping Chen Fertilizer Project 4
Contributors: Migao to Construct 120,000tpy Sulphuric Acid Project
Gao Enyuan A 300,000tpy NPK Project under Construction in Henan Province
Anna He
Wang Ying
Strategy 5
Hu Min
Shen Jianhua Agrium Set Up New Company in China
Liu Bin
Analysis 5
Fertilizer Department, CNCIC
No.53 Xiaoguan Street Wholesale Prices of Fertilizers in Domestic Market in mid-April
Andingmenwai, Beijing,
Yunnan Province to Readjust Phosphate Industrial Structure
100029, P.R.C
Sulfur Acid Price Continues Surge
Tel: +86-10-64444102 Domestic Phosphate Fertilizer Production in Jan.-Feb. 2008
+86-10-64444002-878
China’s Pyrites Production in February 2008
Fax: +86-10-64437116
Email:
wangling@cheminfo.gov.cn Price Watch 12
Weekly Ex-work Prices and Chart of Urea, AS, Ammonium Chloride, DAP,
Annual subscription rate:
EUR1500 (48 issues per year) MAP, NPK on 22 April 2008
Reproduction and distribution Domestic Port Prices and Inventories of MOP and Sulfur
prohibited. All rights
reserved. Imports & Exports 17

CFMW Volume 8 Number 15 April 22, 2008 www.china-fertinfo.com.cn Page 1 of 17

 China National Chemical Information Center Fax: 86 10 64437116 Tel: 86 10 64444102

Focus
Potash Supply Tight in 2H 2008
On 15 April 2008, BPC agreed to sign a new annual potash contract with China. The contract price
is $400/t higher than last year, and shipments will occur from June/July till December 2008.
Because of the prolonged negotiations and tight supply in international markets, BPC will ship
only 1m tones to China in the second half of 2008.

Meanwhile, Canpotex agreed to ship 1mt of MOP to China’s Sinofert by the end of 2008. The new
agreement also reflects a net price increase of $400/t over last year’s contract price. It is estimated
that China’s imported MOP will be priced at $640-655/t CFR, equal to RMB 4,470-4,580/t CFR
based on the prevailing midpoint rate of RMB 6.99 to the US dollar. At present, the MOP
wholesale prices offered by domestic distributors have already reached RMB 4,500/t in China’s
ports.

China’s MOP contract price has increased significantly, but the volume imported will decrease
notably. According to the data published by China Customs, Canada shipped 1.23m tones of MOP
to China, and Russia shipped 1.5m tones during July-December 2007. However, MOP suppliers in
Canada and Russia will ship only 1m tones to China respectively in the second half of 2008,
resulting in a total supply reduction of 700,000t compared with the prior-year contract. China
imported 2.3m tones of MOP from Canada and 3.2m tones from Russia in 2007. Comparing the
data mentioned above, it is apparent that China’s MOP import will drop sharply, and the domestic
supply will be very tight in the second half of this year.

News Flash
○ A special Tariff of 100% on Fertilizer Exports
Approved by the State Council, China will impose a special tariff of 100% on fertilizer exports
based on the existing tariffs in the period from 20 April to 30 September 2008. Exports of all
fertilizer products and related raw materials will be subject to the revised policy. The following
table shows the tariff adjustments.

Product HS Code Original tax rate,% Special tax rate,% Revised tax rate,%
phosphoric acid 28092019 0 100 100
ammonia 28141000 0 100 100
28142000 0 100 100
nitrogen fertilizer 28271010 0 100 100
28271090 0 100 100
31021000 35 100 135
31022100 0 100 100
31022900 0 100 100
31023000 0 100 100

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China Fertilizer Market Week
31024000 0 100 100
31025000 0 100 100
31026000 0 100 100
31028000 0 100 100
31029010 0 100 100
31029090 0 100 100
phosphate fertilizer 31031010 30 100 130
31031090 30 100 130
31039000 0 100 100
potash fertilizer 28342110 30 100 130
28342190 0 100 100
31042090 30 100 130
31043000 30 100 130
31049010 30 100 130
31049090 30 100 130
compound and 31051000 0 100 100
other fertilizers 31052000 35 100 135
31053000 35 100 135
31054000 35 100 135
31055100 0 100 100
31055900 35 100 135
31056000 35 100 135
31059000 0 100 100

○ GDP Remained Strong While CPI Surged in 1Q

China’s economy grew stronger than expected in the first quarter but it was accompanied by
surging consumer prices, prompting the government to tighten credit. Growth in the world’s
fourth-largest economy was 10.6 percent in the first three months from a year earlier. Weakening
export growth contributed to the mild slowdown, but rebounding retail sales and fixed-asset
investment helped the economy expand faster than most analysts expected. Retail sales of
consumer goods rose by 20.6 percent year on year to 2.56 trillion yuan ($365 billion) while fixed
asset investment reached 2.18 trillion yuan ($311 billion), up 24.6 percent. The consumer price
index - the key gauge of inflation - gained 8.3 percent year-on-year in March, down from a
12-year high of 8.7 percent in February. Despite earlier signs of easing, the CPI still gained a
worrisome 8 percent year-on-year for the first quarter. The central bank has jacked up the reserve
requirement ratio for local banks, asking them to set aside more cash in deposits so as to mop up
liquidity and curb inflation.

○ China's Customs Giving Priorities to Farming Materials Business

China’s customs are taking measures to support the spring plough production. Some customs, such
as Zhanjing Customs, Ningbo Customs and Shuifenhe Customs, are giving priorities to farming
materials importing enterprises in going through the customs procedures including goods checking
to let the materials reach the farmers as soon as possible. Fertilizer, pesticide and coal are being
quickly checked in the customs.

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China Fertilizer Market Week

Trade News
Urea: Affected by a 135% export tax on urea introduced by NDRC on 20 April and effective till
30 September 2008，the ex-factory urea prices in Shandong Province fell to RMB 2,000-2,050/t
from RMB 2,250, even before the new policy went into effect. Given the pessimistic outlook in
the domestic market, distributors are in a panic to sell cargos, but there is no interest from
downstream industries and end users. Because most distributors’ stock of urea was purchased at
high prices several months ago, the wholesale prices have not moved down significantly despite
slow trade. On the export market, offers should be over $670/t if a 135% of tax rate is imposed.
According to provisional statistics on urea exports for March, China exported about 570,000t of
urea during March, brining the total in the first quarter this year to 2.27mt, up 279.6% from the
prior-year period.

Phosphate: As a result of high export tariffs imposed on phosphate fertilizer by NDRC,

phosphate producers and traders believe that exports will be brought to a halt and the future price
outlook is dismal. Meanwhile, it will be difficult for the domestic market to digest the
over-capacity of phosphate industry when the spring planting season is over. Because of the
current high prices and tight supply of phosphate fertilizer, the actual demand has plummeted by
40% even though phosphate fertilizer application is in season in the northern, central and southern
parts of China. The ex-factory prices of DAP with a content of 64% are RMB 4,350-4,400/t; and
MAP with the content of 55% is going for RMB 4,000-4,100/t.

According to provisional statistics on phosphate exports for March, China exported about 61,700t
of DAP during the month, bringing the total to 377,100tt in the first quarter this year, up 95.90%
from the prior-year period. China exported about 100,000t of MAP in March and exported a total
of 358,000tt in the first quarter this year, up 113.1% from the same prior-year period.

Potash: As a result of China’s new MOP import contract, offers of Russian red MOP rose to
RMB 4,250/t this week, up from RMB 4,000/t early last week. Qinghai Salt-lake Group has not
announced its new ex-factory prices. It is rumored that the contract prices of trade at the Russian
border will continue to surge in May 2008.

Sulfur: As phosphate export rapidly grinds to a halt, sulfur consumers will be under much
greater pressure because of market shrinkage. This week, the prices of spot sulfur increased to
$730-740/t CFR. The tight supply and high prices have forced many domestic phosphate and
sulfur acid producers to cease production, and as a result, sulfur demand will drop in the near
future.

The China’s government announced that no sulfur will be imported from Kazakhstan from 1 May
to 1 August. Some market players believe that the new regulation will lead to a much tighter
supply in the domestic market. China imported 37,000t of sulfur from Kazakhstan in February,
accounting for 3.8% of the total import.

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China Fertilizer Market Week

Fertilizer Project
Migao to Construct 120,000tpy Sulphuric Acid Project
Migao Corporation announced that it will construct a 120,000tpy sulphuric acid project at the
Economic and Development Park in Yingkou City of Liaoning Province, where its subsidiary,
Liaoning Migao Chemical Ltd is based. Construction of the US$8 million project is scheduled to
begin in May 2008 and be completed in February 2009. Sourced locally in Liaoning Province, the
pyrite supply will be assured in a long term for the new sulphuric acid unit. Sulphuric acid
produced at Liaoning Migao will supply the potassium sulphate production both at Liaoning
Migao Chemical Ltd and Migao’s another subsidiary, Migao Chemical (Changchun) Ltd, located
in Changchun City of Jilin Province. Liaoning Migao Chemical Ltd has a SOP capacity of
40,000tpy and Migao Chemical (Changchun) Ltd has a SOP capacity of 80,000tpy.

A 300,000tpy NPK Project under Construction in Henan Province

Henan Chaixin Chemical Ltd, located in Hancheng of Henan Province, recently held a foundation
laying ceremony for the construction of its 300,000tpy compound fertilizer project. The 81 million
yuan project will be constructed in cooperation with Beijing Hehui Company. Henan Chaixin
Chemical Ltd will have a total compound fertilizer capacity of 800,000tpy upon the completion of
the project.

Strategy
Agrium Set Up New Company in China
Agrium announced its plan to set up Jiayang China Co., Ltd. with its own capital on 11 April and
named Dr. Huang Binghui as the president of the new subsidiary company. Jiayang China will be
engaged in fertilizer production, purchase and sale in the Chinese mainland.

According to Wei Shengmao, the CEO of Jiayang China, there are many fertilizer producers in
China, but they are scattered. It is a good chance for Agrium to expand its fertilizer businesses
though acquisition and integration. Given that raw materials prices continue surging and fertilizer
prices and exports strictly are controlled by the Chinese government, Jiayang China will seek
cooperation with existing producers, especially nitrogen fertilizer makers, instead of investing in a
new plant because of low margins.

Acquisition and integration are the major global methods for Agrium to expand its businesses.
Agium has made seven acquisitions since 1994, with $4 billion investment and stretched into
Argentina, Chile, America and China. For example, Agrium purchased a 19.6% share in Hanfeng
Evergreen in China in 2007.

Analysis

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China Fertilizer Market Week

□ Wholesale Prices of Fertilizers in Domestic Market in mid-April

MOP (K2O 60%) The wholesale prices of MOP were in a range of RMB3100-3800/t in the
domestic markets on 16 April. In Yutian, Hebei Province, the wholesale price of MOP (pink, prill,
imported from Russia) increased from RMB3600/t to RMB3800/t in the period from 2 April to 16
April. In Zhengzhou area and Xinxiang area, Henan Province, the wholesale prices of Russian
MOP increased from RMB3000-3100/t to RMB3100-3150/t in the same period. In Mengcheng
area, Anhui Province, the wholesale prices of Russian MOP increased from RMB3560/t to
RMB4000/t, and the wholesale price of domestic MOP increased from RMB3440/t to RMB3900/t.
In Huaibei area, Anhui Province, the wholesale price of MOP (pink, imported from Russia)
increased from RMB3400/t to RMB4200/t. In Taizhou area, Jiangsu Province, the wholesale price
of MOP imported from Russia increased to RMB3290/t from RMB3260/t. In Xuzhou area,
Jiangsu Province, the wholesale price of MOP imported from Russia increased from RMB3800/t
to RMB4200/t.

SOP (K2O 50%) The wholesale prices of SOP (K2O 50%) were in a range of
RMB3450-4800/t in the domestic markets on 16 April. In Yutian area, Hebei Province, the
wholesale price of SOP (Taiwanese product) remained at RMB4300/t, and the wholesale price of
SOP (white, German product) increased from RMB4500/t to RMB4800/t. In Yantai area,
Shandong Province, the wholesale price of SOP (local product) increased from RMB4500/t to
RMB4700/t, and the wholesale price of SOP (imported from Russia) increased from RMB4800/t
to RMB5000/t. In Zhengzhou area and Xinxiang area, Henan Province, the wholesale price of
SOP (local product) increased from RMB3350-3450/t to RMB3450-3550/t. In Mengcheng area,
Anhui Province, the wholesale price of SOP (produced in Shandong Province) increased from
RMB4150/t to RMB4400/t. In Xuzhou area, Jiangsu Province, the wholesale price of SOP
(produced in Luobupo, Xinjiang Uygur Autonomous Region) increased from RMB4150/t to
RMB4400/t.

DAP (P2O5 64%) The wholesale prices of imported DAP products were in a range of
RMB4470-5600/t in the domestic markets on 16 April. In Yutian area, Hebei Province, the
wholesale price of imported DAP (US Cargill) remained at RMB4800/t in the period from 4 April
to 16 April. In Yantai area, Shandong Province, the wholesale price of DAP (imported from Tunis)
decreased from RMB6000/t to RMB5600/t in the same period. In Mengcheng area, Anhui
Province, the wholesale price of DAP (imported from Tunis) remained at RMB4850/t. The
wholesale price of DAP (imported from Tunis) in Xuzhou area, Jiangsu Province increased from
RMB4600/t to RMB4800/t. The wholesale price of American DAP in Taizhou area, Jiangsu
Province increased from RMB4400/t to RMB4470/t. The wholesale prices of domestic DAP
products were RMB4350-4800/t in Zhengzhou area and Xinxiang area, Henan Province,
RMB4400-4500/t in Mengcheng area, Anhui Province and RMB4600-4900/t in Xuzhou area,
Jiangsu Province.

MAP In Qingdao area, Shandong Province, the wholesale price of local MAP product (P2O5
55%) remained at RMB3980/t on 16 April. In Yantai area, Shandong Province, the wholesale price
of local MAP product (P2O5 55%, powder) increased from RMB3500/t to RM4100/t, and the
wholesale price of local MAP product (P2O5 55%, prill) increased from RMB3800/t to
RMB4300/t. In Mengcheng area, Anhui Province, the wholesale price of MAP (P2O5 55%,

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China Fertilizer Market Week
produced by Hongfu Industry) increased from RMB4000/t to RMB4400/t.

NPK (S, 45%) The wholesale prices of NPK (S, 45%, domestic products) were in a range of
RMB3300-3650/t in the domestic markets on 16 April. The wholesale prices of NPK (S, 45%,
domestic products) were RMB3300/t in Yutian area, Hebei Province, RMB3320/t in Qingdao area,
Shandong Province and RMB3600/t in Yantai area, Shandong Province. In Mengcheng, Anhui
Province, the wholesale price of NPK (S, 45%, domestic products) was RMB3500-3650/t. In
Huaibei area, Anhui Province, the wholesale price of NPK (S, 45%, domestic products) was
RMB3500/t. In Yantai area, Shandong Province, the wholesale price of NPK (S, 45%, imported
from Russia) remained at RMB4500/t.

Urea (N 46%, domestic products) The wholesale prices of urea products were in a range of
RMB1830-2500/t in domestic markets on 16 April. In Shandong Province, the wholesale prices of
urea were RMB1900/t in Yantai area and RMB2220/t in Qingdao area. In Zhengzhou area and
Xinxiang area, Henan Province, the wholesale price of urea was RMB2100-2250/t. In Mengcheng
area, Anhui Province, the wholesale price of urea was RMB2280-2350/t. In Xuzhou area, Jiangsu
Province, the wholesale price of urea was RMB2130-2260/t. In Baoji area, Shaanxi Province, the
wholesale price of urea was RMB1950-1980/t. In Tianshui area, Gansu Province, the wholesale
price of urea was RMB1830/t. In Nanning area, Guangxi Zhuang Autonomous Region, the
wholesale price of urea products was RMB2320/t to RMB2500/t.

□ Yunnan Province to Readjust Phosphate Industrial Structure

In the next five years, Yunnan Province will gradually readjust its phosphate industrial structure.
The emphasis is on the single super phosphate (SSP) industry, starting with the yellow phosphorus
industry, moving toward a scientific development system. As a result, Yunnan will adopt six
guiding principles, listed below.

(1) Encourage development of flotation projects on mid-low grade phosphate rock resources.
Encourage firms to produce and classify commercial phosphate acid based on new technologies,
and to refine and utilize the wet-process commercial phosphoric acid. Firms are also encouraged
to produce fine phosphate based on commercial phosphate acid, to develop deep and fine
processing projects based on yellow phosphorus, and to produce NPK and special fertilizer
products or other extended products based on phosphate fertilizer or other phosphate chemical
materials. Other projects of comprehensive resource utilization based on solid wastes or tail gas
are also encouraged.

(2) Restrict investment in projects starting from phosphate rock selection and processing.

(3) Forbid construction of new facilities and capacity expansion and revamping of existing
capacity for yellow phosphorus, SSP, calcium magnesium phosphate (CMP).

(4) Control the development of wet-process feed-grade dicalcium phosphate (DCP). The total
capacity of the wet-process feed-grade DCP will be limited to 2mpty, and the location of
production will be restricted to the regions of Huize, Xunmian, Dongchuan and Luquan.

(5) High analysis phosphate fertilizer producers are not permitted to construct new capacity.
Except for energy-saving technological transformation of CMP, capacity expansion will be

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China Fertilizer Market Week
prohibited in Yunnan province.

(6) By 2012, commercial phosphate rock capacities should be limited to 25mtpy; the total
capacities of wet-process phosphate acid should be kept below 4.5mtpy and high-analysis
phosphate fertilizer restricted to 7mtpy. The proportion of high-analysis phosphate fertilizer
products should be stabilized at over 85% of the total production of phosphate fertilizers.

□ Sulfur Acid Prices Continue to Surge

Influenced by rising sulfur prices, soaring energy prices and snowy weather interfering with
production in South China, sulfur acid prices in the domestic market continue to increase in the
first half of April. For example, the ex-factory
prices of sulfur acid with a content of 98% in Figure 1 Average Prices of sulfur acid in mid-April in
Eastern China averaged at RMB 1,700/t in different areas of China and change since mid-March
mid-April, up RMB 100/t from the same time
last month. Please see figure 1 for sulfur acid
price movements in China in mid-April. RMB 1,850/t RMB 1500/t
Below we discuss why sulfur acid went up so Up RMB 100/t Stabilization

RMB 1280/t
sharply. Stabilization RMB 1,500/t
Up RMB 100/t
Firstly, increase prices of raw materials such RMB 1,700/t
as sulfur, is the most important cause. Sulfur RMB 1,300/t Up RMB 100/t
Stabilization
imports have dropped significantly since
RMB 1,400/t
January, especially in February and March, Up RMB 100/t
resulting in a very tight supply in the first
quarter this year. The price of spot sulfur imported in April has reached $710/t CFR. Meanwhile,
the ex-factory prices of sulfur averaged at RMB 5,200/t, some as high as RMB 5,450/t. The tight
supply and higher prices of sulfur lead to sulfur acid production cost increases and rising prices.

Second, driven by price increases of sulfur and sulfur acid in international markets, sulfur acid
prices in China have continued to set new records. The increasing demand for fertilizer in
international markets stimulates the sulfur acid consumption, resulting in a sulfur acid shortage
around the world. Rising fertilizer prices also drive sulfur acid prices upward. In addition,
according to some suppliers, ethanol plants
have increased their sulfur acid consumption Figure 2 China's Average Ex-factory Price of Sulfur Acid

this year. In April, sulfur acid prices are

1800
averaging RMB 1,600/t, up from RMB 600/t 1600

of last October 2007. See figure 2 for price 1400

1200
details.
RMB/t

1000
800
Third, the sulfur acid supply is tight in the
600
domestic market. The production in the first 400
two months this year totaled 7.97mt, up 200

4.37% from the same prior-year period. But 0

Jul-07
Mar-07

May-07
Jun-07

Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-07

Apr-08
Aug-07

sulfur acid imports dropped to 331,217t in

January and February, down 10.5%
compared with the same time last year, resulting in an imbalance between supply and demand in

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China Fertilizer Market Week
some markets in China. Producers operated under full capacity in South China and Central China,
the major sulfur acid producing areas. The output in Jilin, Anhui, Henan in the first two months
increased more than 40% from over the same prior-year period. Producers in East China,
Southwest China and Northwest China were still in their resumes stage, with output down more
than 9%, some as much as 50%. Because these regions are also the major phosphate and NPK
production areas, decreased sulfur acid output has resulted in a tight supply in partial areas of the
country.

Finally, the price increases of energy sources also influence the stabilization of sulfur acid. Oil
prices in international markets are running at record levels, and once reached $110 per barrel. Coal
prices in Asian markets increased to $121/t. Domestic coal prices moved up to RMB 800-1,000/t,
up 51% compared with the same prior-year period. As a result, the prices of all agricultural means
of production are also going up faster than before, including sulfur acid.

Supported by high production cost, domestic sulfur acid prices will continue to increase in the
next two months. It is predicted that fast growth of the fertilizer industry will expand the demand
for sulfur acid. Meanwhile, sulfur prices in the domestic market keep increasing, so sulfur acid
price will also continue to move up.

□ Domestic Phosphate Fertilizer Production in Jan.-Feb. 2008

According to preliminary statistics of China Phosphate Fertilizer Industry Association, China
produced 1.77mt (P2O5 100%) of phosphate fertilizer in the first two months of this year,
increasing by 5.2% y/y, of which 1.4mt
were high analysis products, increasing Figure 3 Sulfur Import Volume in China

by 10.5%y/y 1200
Unit: 1000t

1000
China produced 1.079mt (product) of
800
DAP in the same period, up by 10.6%
600
y/y. The output growth was mainly
400
contributed by the DAP production
200
expansion in some producers including
0
Jiangsu Lvling, Hubei Dayukou,
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Guangdong Zhanhua and Sinochem
2007 2008
Three Circles . Table 1 shows the details
of the DAP production in China.

Table 1 Domestic DAP Production by Producers in Jan.-Feb. 2008

Unit: ton, product
Output in Feb. Output in Jan-Feb.
Location Producer
2008 2008
Anhui Anhui Liuguo Chemical Joint Stock Co Ltd 38383 80080
Anhui Anhui Zhongyuan Yingter Fertilizer Co Ltd 0 3758
Anhui Hefei Sifang Phosphate and Compound Fertilizer Ltd 469 1687
Jiangsu Jiangsu Lvling Group 3042 7229
Jiangxi Jiangxi Guixi Fertilizer Co Ltd 19661 40596
Shandong Shandong Luxi Chemical Co Ltd 14179 28278
Shandong Shandong Lubei Enterprises Group 37015 57320

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China Fertilizer Market Week
Hubei Hubei Huangmailing Phosphate Chemical Group 26610 50810
Hubei Hubei Dayukou Chemical Co Ltd 36915 67959
Hubei Hubei Yihua Group 51241 94249
Guangdong Guangdong Zhanhua Joint Stock Co Ltd 19869 39133
Guangxi Guangxi Luzhai Fertilizer Co Ltd 17555 27882
Chongqing Sinochem Chongqing Fuling Chemical Co Ltd 21027 27875
Chongqing Chongqing Win-Win Group 10468 16718
Guizhou Guizhou Hongfu Industry 15012 85902
Guizhou Sinochem Kailin Fertilizer Co Ltd 5486 66231
Yunnan Yunnan Three Circles Cargill Fertilizer 50372 71672
Yunnan Yunnan Three Circles Sinochem Fertilizer 10000 37536
Yunnan Yuntianhua affiliate Yunnan Honglin Chemical 30609 54782
Yunnan Yuntianhua affiliate Yunnan Yunfeng Chemical 23514 41822
Yunnan Yuntianhua affiliate Yunnan Furui Chemical 14545 104718
Yunnan Yuntianhua affiliate Yunnan Tianhu Chemical 5419 14260
Yunnan Yunnan Chengjiang Dongtai Phosphate Fertilizer 2600 5600
Yunnan Yunnan Xiangfeng Fertilizer Co Ltd 10150 28810
Shaanxi Shaanxi Huashan Chemical Group 13922 24498
Total 478063 1079405

In the first two months this year, China produced 1.17mt (product) of MAP, a rise of 7.8% y/y.
MAP outputs declined in Guizhou Province and Sichuan Province in February due to the bad
weather. Table 2 shows the MAP productions by producers in the first two months this year.

Table 2 Domestic MAP Production by Producers in Jan.-Feb. 2008

Unit: ton, product
Output in Feb. Output in
Location Producer
2008 Jan-Feb. 2008
Hebei Hebei Gaocheng Fertilizer Plant 5580 10875
Hebei Tangshan Lihe Chemical Ltd 5472 10281
Jiangsu Jiangsu Lvling Group 16220 50775
Jiangsu Jiangsu Xinyi Hengsheng Fertilizer Ltd 4384 9320
Jiangsu Jiangsu Shuangchang Group 0 4000
Jiangsu Jiangsu Ruihe Fertilizer Ltd 20012 41128
Anhui Anhui Liuguo Chemical Joint Stock Co Ltd 15902 31817
Anhui Anhui Ningguo Sierte Fertilizer Co Ltd 17342 29324
Anhui Anhui Zhongyuan Yingter Fertilizer Co Ltd 6688 6688
Anhui Hefei Sifang Phosphate and Compound Fertilizer Ltd 5924 10089
Shandong Qingdao Dongfang Chemical Group Co Ltd 4215 6864
Henan Jiyuan Fengtian Fertilizer Industry Ltd 16737 29161
Hubei Hubei Xiangyun Chemical Co Ltd 60725 92740
Hubei Hubei Liming Chemical Co Ltd 10702 20844
Hubei Hubei Yihua Group 38120 74018
Hubei Hubei Yangfeng Co Ltd 64216 112815
Hubei Hubei Dayukou Chemical Co Ltd 4672 10575
Hubei Hubei Sanning Chemical Co Ltd 18848 42522
Hubei Hubei E’Zhong Ltd 0 13000
Chongqing Chongqing Huaqiang Fertilizer Ltd 6231 13238

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China Fertilizer Market Week
Chongqing Chongqing Win-Win Group 2628 11386
Chongqing Sinochem Chongqing Fuling Chemical Co Ltd 57458 89627
Sichuan Yingfeng Industrial General Company 5411 6479
Sichuan Yingfeng Industrial affiliate Yunnan Branch 8000 17000
Sichuan Sichuan Gong County Zhongzheng Chemical Ltd 9503 17236
Sichuan Sichuan Hongda Chemical Co Ltd 30490 49866
Sichuan Jinhe Phosphate Rock Mine 3800
Guangxi Guangxi Luzhai Fertilizer Co Ltd 7305 12512
Guizhou Guizhou Hongfu Industry 0 36723
Guizhou Guizhou Tianfeng Chemical Ltd 0 1300
Guizhou Kailin Fertilizer Co Ltd 17441 39703
Guizhou Guizhou Xiyang Group 1569 4741
Yunnan Yunnan Three Circles Sinochem Cargill Fertilizer Ltd 10000 23006
Yunnan Yunnan Three Circles Sinochem Fertilizer Ltd 16548 29554
Yunnan Yuntianhua affiliate Yunnan Honglin Chemical 7362 31545
Yunnan Yuntianhua affiliate Yunnan Yunfeng Chemical 27473 43465
Yunnan Yuntianhua affiliate Yunnan Furui Chemical 14545 32545
Yunnan Yuntianhua affiliate Yunnan Tianhu Chemical 36261 72665
Yunnan Kunming Fertilizer Plant 1987 2761
Yunnan Honghe Hezhong Zinc Industry Co Ltd 3806 8391
Yunnan Yunnan Xiangfeng Fertilizer Co Ltd 1410 5363
Shaanxi Shaanxi Huashan Chemical Group 5932 14371
Total 587119 1174113

Table 3 Domestic TSP Production by Producers in Jan.-Feb. 2008

Unit: ton, product
Output in Feb. Output in
Location Producer
2008 Jan-Feb. 2008
Guizhou Sinochem Kailin Fertilizer Co Ltd 4105 11242
Yunnan Yuntianhua affiliate Yunnan Furui Chemical Ltd 18879 27652
Yunnan Yunnan Three Circles Sinochem Fertilizer Ltd 31012 60015
Yunnan Kunming Dongsheng Metallurgical and Chemical Co Ltd 7713 11802
Yunnan Yunnan Hongxiang Chemical Co Ltd 18504 31784
Total 80213 142495

Statistics compiled by China Phosphate Fertilizer Industry Association show that China produced
more than 4.82mt (product) of NPK compound fertilizer in the first two months of the year, up by
2.7% y/y.

□ China’s Pyrites Production in February 2008

China’s pyrites production was 771,503t (S 35%, same as follows) in February 2008, up 6.81%
from February 2007. The total pyrites output was 1.70mt in the first two months this year, up 6.8%
compared with the same time last year. Guangdong Province was the largest pyrites producer with
240,624t output in February, accounting for 31.2% of the national total. Anhui Province ranked
second producing 204,086t, 26.4% of the total output. Next was Jiangxi Province with 95,860t

CFMW Volume 8 Number 15 April 22, 2008 wangling@cheminfo.gov.cn Page 11 of 17

 China Fertilizer Market Week
output. See table 4 for detailed data.

Table 4 Pyrites (S 35%) Production by Province in China

Unit: 1000 tons
Total Output in Jan. and % Over the same
Province Output in Feb.08 % Over Feb.07 Feb. 2008 prior-year period
Guangdong 240.6 24.11 521 16.32
Anhui 204.1 6.11 330.0 -6.83
Jiangxi 95.9 -26.43 194.6 -28.47
Liaoning 58.7 3.5 235.5 65.58
Yunnan 42.7 14.72 93.4 17.9
Jiangsu 27.8 12.0 52.2 -11.08
Inner Mongolia 11.9 115.55 50.6 50.27
Guangxi 11.5 -10.68 21.5 -14.51
Gansu 11.1 -15.38 23.0 2.34
Qinghai 11.0 -15.38 22.5 -14.27
Zhejiang 10.4 -17.8 23.9 15.27
Henan 9.21 -3.05 18.3 -2.09
Xinjiang 8.6 67.13 31 213.3
Hebei 5.5 71.67 9.0 42.52
Sichuan 5.1 -28.62 28.3 61.66
Others 17.5 - 49.0 -
Total 771.5 6.81 1705.0 6.8

P r i c e Wa t c h
Exchange rate: 1USD=6.99RMB

○ Weekly Ex-work Prices of Urea

Figure A, China's Ex-work Prices of Urea

Unit: Rmb/t

2000

1900

1800

1700

1600

1500
Aug-07
Feb-07

Jun-07

Jul-07

Sep-07

Feb-08
Jan-07

Mar-07

Apr-07

May-07

Nov-07

Dec-07

Jan-08

Mar-08

Apr-08

May-08
Oct-07

CFMW Volume 8 Number 15 April 22, 2008 wangling@cheminfo.gov.cn Page 12 of 17

 China Fertilizer Market Week

○ Ex-work Prices
Urea, 22 April 2008
Unit: US$/t
Plant Price Plant Price
CNPC Daqing Petrochemical Co 246.8 Hefei Sifang Group 300.4
Jilin Tonghua Chemical Co Ltd 271.8 Sinopec Zhenhai Co 286.1
Liaoning Huajin Chemical Group 271.8 Sinopec Jiujiang Co 286.1
Panjin Zhongrun Chemical Co Ltd 274.7 Guizhou Chitianhua Group Co Ltd 264.7
Inner Mongolia Tianye Chemical Co 271.8 Meifeng Chemical Industry Stock Holding Co Ltd 271.8
Wulashan Fertilizer Plant 271.8 Guangxi Hechi Chemicals 300.4
Hebei Cangzhou Dahua Group 246.8 Jiang’an Chemical Co Ltd 300.4
Hebei Jingxian Fertilizer Co 300.4 Jiangsu Linggu Chemicals 300.4
Shijiazhuang Fertilizer Group 300.4 Yunnan Jiehua Group 257.5
Shanxi Lanhua Sci-Tech Venture Co Ltd 286.1 Yunnan Yunwei Group 264.7
Hunan Yihua Chemical Co 300.4 Fujian Sanming Chemical General Plant 279.0
Shandong Hualu Hengsheng Co Ltd 293.3 CNPC Ningxia Petrochemical Co 246.8
Shandong Lunan Fertilizer Plant 293.3 Weihe Coal Chemicals 246.8
Shandong Tengzhou Ruida Chemicals 293.3 CNPC Lanhua Co 286.1
Shandong Luxi Chemical Group 294.7 Henan Zhongyuan Dahua Group 300.4
Huixian Haolida Chemical Co Ltd 300.4 Henan Anyang Chemical Group 300.4
CNOOC Fudao Chemical Co 246.8 Henan Junma Chemical Group 297.6

AS, 22 April 2008

Unit: US$/t
Plant Price Plant Price
Heihua Group 186.0 Shougang Coking Chemical Plant 150.2
Angang Chemical Plant 193.1 Hebei Jiheng Chemical Co Ltd 203.1
Nanjing Dongfang Chemical Co 260.4 Yueyang Baoqing Chemical Co 237.5
Shijiazhuang Chemical Fiber Co 150.2 Heilongjiang Longxin Chemicals 193.1

Ammonium Chloride, 22 April 2008

Unit: US$/t

Plant/Product Price Plant Price

Shijiazhuang Fertilizer Plant /23.5% 178.8 Hubei Yihua Co Ltd /25% 186.0
Shanxi Fengxi Fertilizer Industry Co Zigong Honghe Chemical Stock Co
150.2 178.8
Ltd /23.5% Ltd /25%
Chongqing Jian’an Industry General Yunnan Yunwei /25%
171.7 165.1
Co /23.5%
Shaanxi Xinghua Group Co Ltd
Gansu Jinchang Chemical /23.5% 150.2 171.7
/23.5%
Hunan Zhicheng Chemicals Co Ltd Shaanxi Hanzhong Nanhua Group
150.2 143.1
/23.5% /23.5%

CFMW Volume 8 Number 15 April 22, 2008 wangling@cheminfo.gov.cn Page 13 of 17

China Fertilizer Market Week

DAP, 22 April 2008

Unit: US$/t
Plant Product Price
Chongqing Win-Win Group 15-42-0 569.4
Anhui Liuguo Chemical Industry Holding Co Ltd 13-44-0 572.2
17-44-0 586.6
Yuntianhua International Honglin Company 18-46-0 586.6
Yuntianhua International Furui Company 18-46-0 586.6
Yuntianhua International Yunfeng Company 18-46-0 586.6
Yuntianhua International Three Circles Company 18-46-0 586.6
Hubei Huangmailing 18-46-0 586.6
Guizhou Hongfu 18-46-0 586.6
Guizhou Kailin Group 18-46-0 586.6

MAP, 22 April 2008

Unit: US$/t
Plant Product Price
Sichuan Gongxian Zhongzheng 55% powder 565.1
55% granular 579.4
Sichuan Shifang Yingfeng 55% powder 572.2
55% granular 579.4
Guizhou Kailin Group 60% powder 586.6
58% powder 557.9
Anhui Liuguo 55% powder 572.2
53% powder 555.1
Guangxi Luzhai 55% powder 529.3
Hubei Yihua 55% powder 543.6

NPK, 22 April 2008

Unit: US$/t
Plant Product Price
Shandong Stanley Fertilizer Co Ltd 15-15-15 (Cl) 404.9
Shandong Shikefeng 15-15-15 (Cl) 457.8
15-15-15 (S) 486.4
30-5-5 (Cl) 372.0
Hubei Yihua 15-15-15 (S) 464.9
Shandong Luxi Chemical Group 13-17-15 (Cl) 464.9
45% (Cl) 407.7

CFMW Volume 8 Number 15 April 22, 2008 wangling@cheminfo.gov.cn Page 14 of 17

China Fertilizer Market Week
Hubei Xiangyun Group 16-16-16 (Cl) 457.8
Hubei Yangfeng Stock Holding Co Ltd 15-15-15 (S) 464.9
Henan Anyang Chemical Plant 40% 343.3
Jiangsu Longteng Chemical Industry Co Ltd 15-15-15 (Cl) 436.3
Jiangsu Zhongdong Group 16-16-16 (Cl) 464.9
Hebei SACF 28-6-6 (Cl) 357.7
15-15-15 (S) 515.0
15-15-15 (Cl) 472.1
JSC Hongri Acron 15-15-15 (Cl) 457.8
13-18-14 (S) 506.4
14-16-15 (S) 506.4
15-15-15 (S) 506.4
Guizhou Kailin 45% (Cl) 429.2

CFMW prices are for your reference. CFMW tries our best to ensure the reliability of the information. However,
no guarantees of the accuracy nor any liability for the results obtained by using the data are assumed by CFMW.

○ Domestic Port Prices and Inventories

MOP, 22 April 2008

Port Producer/Product Price (US$/ t) Inventory (1000t)

Chiwan Russia/ red MOP 608 80
Russia/ white MOP 658 60
Russia/ red MOP, granular -- --

Canada/ red MOP 658 80

Israel/ white MOP -- 70
Zhanjiang Canada/ red MOP 658 500
Canada/ white MOP -- --

Russia/ red MOP 608 105

Russia/ white MOP 658 46
Russia/ red, granular -- 16
Jordan/ white MOP -- 34
Fangcheng Canada/ red MOP -- 90
Russia/ red MOP 608 20
Russia/ white MOP 658 30
Shanghai Canada/ red MOP -- 8.8
Russia/ red MOP 608 78
Russia/ red MOP. Granular -- 0.7
Israel/ white MOP -- 43

CFMW Volume 8 Number 15 April 22, 2008 wangling@cheminfo.gov.cn Page 15 of 17

China Fertilizer Market Week
Canada/ white MOP -- 18
Russia/ white MOP 658 34
Germany/ white MOP -- --
Lianyungang Russia/ red MOP 608 260
Russia/ white MOP 658 37
Russia/ red MOP, granular -- 20
Canada/ red MOP 658 90
Canada/ white MOP -- 12

Canada/ red MOP, granular -- --

Jordan/white MOP -- 60
Beihai Canada/ red MOP 658 10
Yantai Russia/ red MOP 608 18
Russia/ red MOP, granular -- --

Canada/ red MOP 658 140

Canada/ white MOP -- --

Canada/ red MOP, granular -- --

Qingdao Russia/ red MOP 608 100

Russia/ white MOP 658 20
Canada/ red MOP 658 50
Canada/ red MOP, granular -- --

Israel/ white MOP -- --

Total -- 2130.5

Sulfur, 22 April 2008

Port Price (US$/ t) Inventory (1000t)

Jinzhou self-consumption 20
Qingdao 729-772 50
Rizhao self-consumption 5
Zhenjiang 743-786 50
Lianyungang -- 32
Zhanjiang self-consumption 130
Fangcheng self-consumption 200
Nantong 815-829 40-50
Tianjin 672-729 10
Beihai 743 120
Lanshan self-consumption no stock

CFMW Volume 8 Number 15 April 22, 2008 wangling@cheminfo.gov.cn Page 16 of 17

China Fertilizer Market Week

Imports & Exports

○ China’s Fertilizer Imports by Month in 2007-2008
Unit: tons
MOP SOP DAP NPK Urea
Jan.07 820004 27120 113516 47771 113
Feb.07 919379 15536 108129 225174 45
Mar.07 553345 25538 132962 141128 153
Apr.07 935360 17668 185412 147105 109
May.07 782415 15331 20 73639 0
Jun.07 855665 15368 0 176162 0
Jul.07 973887 15158 0 113758 18
Aug.07 852045 8654 0 82121 20
Sep.07 748220 6112 20 95293 20
Oct.07 532084 8747 0 136384 0
Nov.07 690378 7753 0 21815 62
Dec.07 750728 16515 0.02 90135 1160
Total 07 9413510 179500 540059 1350485 1700
Jan.08 759256 14455 12 17518 9.9
Feb.08 482360 9195 20 61651 0.04
Total 08 1241616 23650 32 79169 9.94

○ China’s Fertilizer Exports by Month in 2007-2008

Unit: tons
Ammonium
Urea AS TSP DAP NPK
chloride
Jan.07 372353 84459 68687 70295 49594 21751
Feb.07 113845 70494 28334 64481 42388 18703
Mar.07 111784 80663 54934 57725 27972 20880
Apr.07 131737 90063 157479 110941 60746 39972
May.07 310487 94633 41328 248088 41379 48149
Jun.07 202944 62457 63032 406166 70464 59458
Jul.07 515035 85861 147424 324094 44971 55569
Aug.07 339937 90597 128008 44562 43022 39622
Sep.07 252350 95107 109911 79280 72614 21221
Oct.07 458370 111805 74805 202610 54327 34554
Nov.07 926714 86998 137164 192597 33306 24638
Dec.07 1518455 98727 94373 170597 58482 41937
Total 07 5254011 1051864 1105479 1971436 599265 426454
Jan.08 1225182 100728 123554 214606 60164 36654
Feb.08 487527 88943 132487 100836 69809 70592
Total 08 1712709 189671 256041 315442 129973 107246

CFMW Volume 8 Number 15 April 22, 2008 wangling@cheminfo.gov.cn Page 17 of 17