June 11, China's fertilizer market information will be held in Chamber of Commerce in China Petroleum Building. PetroChina, CNOOC Chemical Co., Ltd., Shanxi Jincheng Coal Industry Group, Hubei Yihua Group, Shandong Luxi Chemical Group, Sichuan Chemical Holdings Group and other business groups and the six nitrogen-based fertilizer Co., Ltd., Zhejiang Agricultural Materials Co., Victoria Hui companies, Jiang Su Sunong agricultural chain Co., Ltd., Heilongjiang four times the abundance of chemical fertilizers and other agricultural materials circulation enterprises group of 10 companies attended the meeting by the China Fertilizer Industry Association, vice chairman of China's oil refining and Chemical Branch, deputy director-product marketing genius over China's oil refining and marketing division vice president of the meeting and Mr Shi-Min Zhou, China Nitrogen Fertilizer Industry Association, vice chairman and secretary general Moderr concluding remarks.
        The meeting first heard the Nitrogen Fertilizer Industry Association, on "China's nitrogen fertilizer production in 2010 to run the first half of the report," "report" shows that the majority of the first half of our nitrogen fertilizer business was losing money, a large number of companies were forced to stop or early repair, some enterprises face bankruptcy. According to association statistics, long-term parking and the first half of corporate bankruptcy Transferring more than 3 million tons of urea production. June 7, according to surveys, the current parking up to 45 urea enterprise, industry-wide device at 75% capacity utilization low. The market downturn, natural gas supply issues, there are nearly 200 tons of urea production capacity of the new urea plant production delay. Taken together, the first half of urea production is essentially the same as last year or increased slightly.
        At the meeting, Shandong Luxi Chemical Group and Sichuan Chemical Holdings Group also were on the "first half of 2010 the international urea market and export situation of China's urea" and "natural gas price adjustment on the nitrogen fertilizer business impact analysis" to do presentations. The participants also fertilizer production, market demand and cost conditions, the export situation, national policy toward hot spots had wide-ranging discussion.
        Meeting that the contradiction between supply and demand is now and for some time, the main contradiction of urea market. Be a fundamental solution in this conflict until the urea is difficult to achieve fundamental improvement in the industry.
        June 1 natural gas from industrial average was up 0.23 yuan / cubic meter (in addition to pipeline transportation costs 10% higher prices and the floating elements, some companies actually rose to 0.4 yuan / cubic meters) after the first urea gas producers Urea costs 180 ~ 280 yuan / ton. Though head of raw materials due to the national gas production capacity of urea plant only 27% of total capacity, combined with market demand, flat, natural gas prices could not leveraging the market price of urea is running low, but natural gas prices rise significantly to make solid the first significant increase in the cost of gas installations, almost all gas companies into a loss situation first urea.
        Analysis from the export situation, the current port to wait for about 1.5 million tons products after July 1 off-season window of export tariffs, can smoothly exit, will greatly influence the market trend in China late urea.
        To this end, the meeting made the following observations and recommendations: 1, given the current low international urea prices, the amount of stable export by the domestic market, China Nitrogen Fertilizer Industry Association proposed by the lead, with the unit, reporting to the State ministries and commissions, for abolition of the existing 7% of exports of urea product off-season tariffs. 2, and gradually establish coordination mechanisms for the export of urea, the export enterprises should strengthen coordination and self-export, to avoid disorderly competition in the internal price, export price guarantee in place. 3, given the country a few months after this year, gradually into the fertilizer off-season, and the current industry losses, hopes conditional enterprises to reduce production in order to ease the supply and demand. 4, given the rising cost of business pressures and operational difficulties, production and management requirements of various sectors to work together to stabilize the market price. 5, the sale of scientific and standardized enterprises should act, especially in the market prices of, to jointly sell the careful application of the Federal Reserve and other marketing methods, to avoid or reduce the improper sales practices to further boost the market price down. (Hanyan)