China's nitrogen fertilizer industry development interpretation

Fertilizer belongs to agricultural production data and it is one of the important industries of China's chemical industry and national economy. Since the 1990s, China's fertilizer production and consumption have been ranked first in the world, accounting for about 1/3 of the world total. In recent years, the nitrogen fertilizer industry in China has experienced a peak in capacity expansion, which has seen a significant increase in supply and slow demand growth. Overcapacity is still a major factor constraining the development of the industry. In November 2011, China produced 3.41 million tons of nitrogen fertilizer, which was a year-on-year increase of 12.05%. Data showed that from January to November 2011, the national nitrogen fertilizer production reached 3,845 tons, an increase of 7.71% year-on-year.

Champ Consulting chemical industry analysts believe that with the continuous improvement of China's nitrogen fertilizer production capacity, the contradiction between supply and demand in the market is increasingly prominent, the industry lacks resources, the scale of the company is small, the technology level and management level of the backward companies will be in a new round The industry shuffled out. At present, the main problems facing the nitrogen fertilizer industry in China are as follows:

1, the issue of excess capacity is difficult to solve. The domestic nitrogen fertilizer market has been oversupplying for a long time. Digestion of production capacity through exports has long been the method adopted. However, in the future, the global nitrogen fertilizer supply will increase significantly in the next five years and reach 190 million by 2015. Ton, the total global demand for nitrogen fertilizer in 2015 was 172 million tons, and the gap between them was very large. It would be more and more difficult to digest the production capacity in this way.

2. Industrial policies are not very reasonable. At present, most of China's industrial policies are temporary and extremely short-sighted, resulting in the market is very predictable. The chemical fertilizer industry policy should be developed in a comprehensive and systematic way, and the chemical fertilizer industry should be completely opened.

According to the "China Nitrogen Fertilizer Industry Analysis Development Depth Study Report 2010" released by Champ Consulting, the cost of product manufacturing costs will continue to rise due to the increase in costs of raw coal, transportation, and labor. After a new round of integration and development, China's nitrogenous fertilizer companies will develop towards large-scale and collectivization, adopt advanced corporate management concepts and management methods, and integrate and co-produce different processes to form an economic-scale production center. The nitrogen fertilizer market structure is in a weakly balanced state. Before major policy adjustments are made, prices of products will continue to oscillate slightly in the future.