SO4 (ASX) Chinese export tariffs

Originally posted by Abos: ↑

very interesting read, the question is what difference will it make if any? following are a couple of points i have picked up in my research in the sop space;

supply price likely has a floor in the marginal cost of production of sop via the mannheim process ~us$400t.
mannhiem furnaces are being shut down for environmental reasons, so this is likely to be reducing supply and consequently pushing up prices(?)
demand inside china is likely to stay the same or even grow, so where is their demand being met from?

just as an idea, is it possible that the chinese regulators have removed this tarif as they know that china is unable to export any sop due to internal supply shortages for this product, and they are using it to soften the us stance in the trade negotiations? ok so sop alone will not move us policy, but some concessions need to be made and this could just be a move by china in that direction..... has this sort of thing happened before, i.e. give someone something they don't want so that you can get what you want? i think so.

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as a holder of this stock in the very early days even when it was lower than $0.15 cents a share I would not be too concerned as China's supply capacity is not that great compared to other markets globally- seeing that it is the export Tariff I would be more concerned if it were the opposite an import tariff-SOP unlike UREA is much harder to produce and I think personally China tried to dominate the UREA market when they flooded the market with cheaper fertilizer, I believe that SO4 and its future partners will demand a very high price for there product and I would not be surprised if they get gobbled up by RIO T or BHP who import large amounts of SOP into Australia so there expenditure could be far lower with costs in there back yard not imported from Canada and Europe for examples. it is about the bottom line at the end of the day, China would need to explode in land mass for Agriculture which there demand is importing massive amounts of supplying the food for there country as we have so much land yet to be farmed here in Australia.