China turns net NPK exporter in August

China became a net exporter of NPKs in August for only the fourth time despite lower exports that month, as a result of a seasonal slowdown in import demand.

August exports fell by 6pc year on year to 93,000t, while imports rose by 26pc to 80,700t, GTT data show. China has only ever been a net exporter of NPKs three times before — in March 2019, August 2019 and June 2020 — as the Chinese government levied a tax on NPK exports prior to 2019.

The repeat of net exports in August 2019 and August this year points to a seasonal drop in import demand as a result of the domestic market entering the summer off-season.

Russia remained the top supplier in August with a 44pc market share, up from 40pc a year earlier. Deliveries rose by 38pc year on year to 35,200t. Imports from Norway and Finland, representing producer Yara, totalled 28,500t, up from 1,500t a year earlier. These increases offset a 73pc drop in deliveries from Belgium to 6,500t, from 24,300t.

The Philippines replaced Myanmar as the top destination for August exports, as shipments rose by 140pc to 38,300t, while exports to the latter were flat on the year at 29,500t. Importers in the Philippines were replenishing stocks after Covid-19 restrictions limited deliveries in the second quarter. The overall drop in Chinese exports was the result of shipments to Mozambique dropping to nothing from 30,500t a year earlier.

January-August imports totalled 947,900t, less than 1pc up on the year. Yara supplied the largest share at 41pc, despite its deliveries falling year on year. Imports from Russia and Belgium rose.

January-August exports rose by 12pc year on year to 721,900t, as Chinese suppliers diversified their export markets. While shipments to the two largest export markets — Myanmar and the Philippines — fell year on year, exports to Mozambique, a popular destination for onward shipment to other southeast African countries, rose by 54pc year on year. Chinese suppliers also gained market share in Latin America, shipping 20,000t to Mexico, up from 5,000t in January-August 2019, and 18,000t to Venezuela, up from zero a year earlier.

By Megan Tracey

Chinese NPK imports and exports, 2020 '000t