Vietnam intended to raise the export tariff of multiple minerals

Keyword: Phosphorus, Vietnam, Ammonium
Publish time: 2nd January, 2013      Source: CCM
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  On Oct. 25, Vietnam's medium Thi Báo Kinh T Sài Gòn (TBKTSG) disclosed that Vietnam intended to raise the export tariff on multiple minerals, including phosphorus ore. Besides, the new export tariff on phosphorus ore will rise from 10%-15% to 15-25% and is expected to be implemented this year.


  Vietnam's restriction on export of phosphorus ore takes a toll on the international market of phosphorus ore. As for China, the pressure may be exerted on domestic ammonium phosphate producers if Vietnam's ammonium phosphate industry gets a booming development in the future. For the moment at least, there's no intersection between China and Vietnam in terms of phosphorus ore business.


  According to data from United Nations Commodity Trade Statistics Database (UN comtrade), India was the main export destination of Vietnam's phosphorus ore in 2008-2011. In 2011, Vietnam exported 586,846 tonnes of phosphorus ore, of which 71.11% was exported to India.


  While for India, it seemed it did not rely too much on Vietnam's phosphorus ore. Among India's import of phosphorus ore in 2011, only 8.16% was from Vietnam. Generally speaking, Vietnam's push in this direction is definitely in the best interests of protecting local resources and restricting exports. In the meantime, it would be conducive to developing local downstream phosphorus products like yellow phosphorus and ammonium phosphate.


  By the end of Oct. 2012, the capacity of phosphate in Vietnam had increased to 1,370,000t/a, whilst Vietnam's capacity expansion of ammonium phosphate was under way. In Jan. 2012, Vietnam National Chemical Corp. (VNCC) constructed its second ammonium phosphate facility. By 2015, VNCC's capacity of ammonium phosphate is expected to increase to 660,000t/a, which can surely boost the demand for phosphorus ore. In addition, this also can entail sufficient feedstock to supply its booming yellow phosphorus industry.


  As the second largest holder of phosphorus ore resource in the world, China has been a net phosphorus ore exporter over these years. Phosphorus Industry China Monthly Report provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, and supply & demand of China's phosphorus industry.


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