The reporter learned from the work conference of China's potassium sulfate industry that in the first May, the Alashankou port imported 143,900 tons of potassium chloride, valued at US$31.35 million, an increase of 81.2% and 103.3% year-on-year. All imported potassium chloride comes from Russia. The main reason for the substantial growth of potassium chloride is that the import tax rate will be adjusted from 3% before July 1st this year to 1% after July 1st.
Some experts have suggested that in the current situation where the potash fertilizer market is generally stable and prices continue to rise, companies that use potassium chloride as a raw material to produce potassium sulphate face a test of how to survive. For this reason, the country should change the income tax from the first sign of the levy to the direct exemption; in addition, the industry should prevent low-cost dumping. If these two problems cannot be solved, processing potassium sulfate companies may completely withdraw from the potash industry.
According to reports, China's current imports of potassium chloride 2200 yuan / ton, sulfuric acid 550 to 600 yuan / ton, manufacturing costs 250 to 300 yuan / ton, which is the cost of the processing of potassium sulfate enterprises face the current market sulfuric acid Potassium manufacturers are quoted at RMB 2200 to RMB 2400/t for external use, and actual transaction prices are at RMB 2200 to RMB 2300/t. Businesses have no profit at all. The entire industry is faced with the problem of loss and conversion. The Potassium Salt Industry Branch once calculated the actual production cost of the processed potassium sulfate enterprise with a capacity of 40,000 tons to be close to 2,500 yuan/ton. At that time, the price of potassium chloride was lower than the current market price by 100 yuan/ton, and the sulfuric acid price was lower. The current market price is 30 to 70 yuan/ton, and fuel heavy oil is far below the current market price.
At this industry work conference, a large number of producers of potassium sulphate shouted: "2500 yuan / ton is a life and death line."
According to the person in charge of the Potash Association, there are currently 43 potassium sulfate producers in the country. Except for one or two companies that have potassium resources, the others are processing potassium sulfate producers. The largest capacity among these companies is Qingshang Group, with a total capacity of 600,000 tons. Its production companies are located throughout the country, with a total of 18 companies, and the rest of the company's production capacity is between 10,000 and 100,000 tons. At present, both the Qingshang Group, which has the largest capacity, and the small-scale enterprises with a capacity of 1 to 20,000 tons, believe that the processed potassium sulphate enterprises are already in danger of stopping production, and it is urgent for the state to give policy support.
Therefore, at this industry work conference, many participants expressed the hope that the country could change the original VAT exemption policy to exemption. Because these companies need to import potassium chloride as raw materials, because the purchase of potassium chloride is through the dealers, they can not issue value-added tax invoices, the production company will not be able to directly offset the purchase of potassium chloride input tax. This resulted in the "first levy" of VAT after the sale of potassium sulphate and no "return of VAT".
According to reports, the total domestic production capacity of potassium sulphate is currently close to 2 million tons, and China is already the largest producer of potassium sulphate in the world. More than 90% of these capacities are produced by the Mannheim process. At present, the capacity of processed potassium sulfate enterprises has only been implemented at about half, and some companies have stopped production of potassium sulfate because of cost and sales upside down. If the environment for business survival does not improve, the number of companies that have stopped production will increase. At present, the domestic production of potassium sulfate is 1.3 million tons per year, and the market consumption is more than 1 million tons. Most of them are sold directly to farmers.

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