State fertilizer industry overcapacity since the severe 2008 financial crisis, despite the fertilizer demand declined significantly, but by the local governments, driven by the pursuit of GDP impulse to invest the main producing country, especially in the energy gets going and goes there on a wave of urea fertilizer in particular, led to more excess of urea seriously. As the ammonium nitrate and urea have some alternative low urea price inevitably depressed the price of ammonium nitrate ammonium nitrate industry, coupled with the relatively closed due to a lack of industry organizations, and coordinating the internal conflicts led to the downstream industry for the industry have less bargaining power inevitable downturn.
     Nitrogen gas from natural gas price is the major enterprises are facing uncertainty. June 21 this year, the State Development and Reform Commission of Sichuan-East Gas Transmission natural gas pricing set at the factory base price of 1.28 per cubic meter (including VAT) of the specific ex-factory price by supply and demand sides of the floating up and down within 10% of the final price set in consultation for 1.408 yuan float 10%. And the Sichuan Gas to East Pipeline across the board to send the average price of transportation provisional 0.55 per cubic meter (including sales tax) would result in Sichuan Gas to East, almost no longer have to send downstream fertilizer users. As the nitrogen gas from natural gas accounts for a major part of production costs of natural gas prices increase so will be the first nitrogen gas enterprises are facing a major uncertainty. (Miao Qiao)