Nitrogen Fertilizer raw material cost difference comes from the line, location, industry and management of different routes, leading to four different cost of nitrogen fertilizer business is very much different. Looks are urea production, selling prices are the same, but some companies can make money, and some loss of business or closed down, which in other industries is rare.
Material differences between routes. Current production of urea is the main raw material of coal and natural gas. Not long ago, just raise prices of natural gas, the cost of gas from urea tons of general in the 1200-1600 yuan / ton between the production cost differences are mainly natural gas prices. Currently, natural gas low price 1.1 yuan / cubic meters, corresponding to the production cost of urea 1,200 yuan / tonne, high-end price 1.6 yuan / cubic meters, the corresponding urea this is 1550 yuan / ton. Cost of coal generally the first urea in 1500-1700 yuan / ton. From the cost comparison analysis, it should be said of natural gas at 1.6 yuan / cubic meter, the price of coal at 1,000 yuan / ton, the corresponding cost will be balanced in 1600 yuan / ton.
Regional differences in geographic location. Mainly consider the resources, accounting resources, including Shanxi, Inner Mongolia, far from the resources, including Fujian, Hunan, Guangdong, Guangdong enterprises are now a no urea. Now Fujian, Hunan, Jiangxi, Guangdong, Zhejiang, Anhui, these enterprises are very difficult. Since resources are unevenly distributed, leading to a difference of urea production costs 300 yuan / ton.
        Different process routes. As technology costs can vary with different t 200. Production of urea, a small fertilizer business process route optimization, nitrogen is the worst. Where a small chemical businesses often find that there are differences in technology to transform, and the current capacity utilization is relatively high, other costs are lower. In addition, the lump on the impact of urea is higher than coal.
        Management differences. This area is very small in other industries, in the urea industry, in particular a great impact on manufacturers. Difference from the first three innate, but acquired the management of differences, so very different result. Management There are three reasons for the differences, the same enterprises in Henan, urea, a total of 26 companies, the maximum cost to 1750 yuan / ton, the lowest 1,450 yuan / ton, a difference of 300 yuan / ton. In Henan, regional differences result in up to 30 yuan per ton -50 yuan. Shows that differences in the management of the production cost of nitrogen fertilizer is also very large.
Based on the above four we then infer that three to five years or even decades later, how will China's urea distribution?
        First, because natural gas will continue to chase, so coal will become the main raw material for urea production. The next three to five years, the Chinese natural gas production of urea will be produced with the oil companies, like urea, urea out of the industry.
Second, because of geographical differences, the Yangtze River south of the urea enterprise basic to turn off, will be mainly imported. 
        Third, the next three to five years, China will produce urea industry, a new pattern. Xinjiang, Inner Mongolia, including the Northeast where there is coal, urea, companies will have sprung up everywhere. Coal mining costs are high (because of faster mining finished), while the Xinjiang Coal is basically free, with Xinjiang's coal production cost of urea out of total cost is 600 yuan, in Xinjiang, the cost of natural gas produced 1600 tons of dollars, tons of price a difference of 1,000 yuan, so if a good transport in Xinjiang the most advantageous. It can be said definitely dare to set up factories in Xinjiang is a large enterprise, small enterprises can not do. The Gobi Desert in the Xinjiang capital to build a platform for at least three years to invest 20 billion yuan. In the Gobi desert, although the low cost of urea, and other input costs are very high