Investor Relations

Operational prospects 2013

Operational prospects 2013

Industry developments

The commodity nitrogen fertilizer supply in 2013 was significantly influenced by increased Chinese urea production and export capacity, in addition to a reduced urea export tax. According to official information the Chinese urea export tax is at RMB 40 per ton plus 15% until 1 July, after which it reduces to RMB 40 per ton until 1 November, when it returns to RMB 40 per ton plus 15%.

Going forward, the price and availability of urea exports from China will be influenced by the price development for anthracite coal and other domestic cost elements such as labor and freight. In addition, port loading capacity can represent a bottleneck during peak export months.

There are limited greenfield nitrogen capacity additions scheduled for completion in the next two years outside China, apart from Algeria, where start-ups are planned but with unclear export volume implications amid natural gas, administrative and logistical bottlenecks.


Developing the company

With its global downstream presence, differentiated product portfolio and increasing innovation efforts, Yara intends to both promote and create profitable business opportunities from the needed increased emphasis on efficient fertilizer application. Yara aims to achieve this through downstream and upstream growth, technology and competence development.

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