There is a saying: "fertilizer business is difficult, the nitrogen fertilizer business more difficult." In recent years, the nitrogen fertilizer business has been difficult to survive, according to the petrochemical industry, the main business profits and income data show that in 2010 oil and gas industry profit margin reached 30.62%, while the fertilizer manufacturing industry profit margin is only 4.70%. Which fertilizer manufacturing 4.06% 5.50% fertilizer manufacturing, organic fertilizer and microbial fertilizer manufacturing is 6.52%, only 1.73% of urea manufacturing, the petrochemical industry in the benefit system the worst in the industry. This year, however this situation has undergone major changes, the nitrogen fertilizer business to play a turnaround, the overall situation has improved.
Nitrogen fertilizer business frequently good news 
  Shortly after the first half, came the sound of nitrogen fertilizer business frequently good news, is gratifying. 
  It is understood that Shanxi Fengxi Huarui 102,241.9 tons of synthetic ammonia production during the first half, 171,588.9 tons of urea, a profit of 81.8299 million yuan, to achieve the production, profit double-half, especially in the first half year profits have completed the task of 136.39%. Deputy General Secretary continued Shanxi Jinfeng Gong Dong Chan said in June alone they shipped more than 80,000 tons, and the selling price of urea per ton higher than in May, 150 ~ $ 180 alone on the company to increase profitability month 1200 million. Hubei Sanning Chemical industrial output value at current prices during the first half totaled 2,579,779,000 yuan, up 69.4% over last year; cumulative production of urea, 236,300 tons, the year is expected to create a 30 million tons of capacity to produce 40 tons of urea a miracle. 
  Listed on the nitrogen fertilizer business also performed well. Sichuan Meifeng notice that half-year results are expected in the first half attributable to shareholders of listed companies net profit 91.9 million 1.08 billion yuan, up 70% to 100%. Forecasted price of urea is the main reason for large increases in the main product, sales stable. Liao Tung Chemical half-year notice that it expects 460 million first half profit to 4.8 billion yuan, up by 113% to 122%. Growth performance is one of the major urea prices increased considerably in the second quarter year on year. Jiangsu Huachang Chemical expects first-half profit 25 million to 3000 million yuan, to achieve profitability, ammonium chloride, urea and other product prices, gross margin increased as the main reason ... ...
Is the main cause of rising prices 
  Corporate profits in the first half of nitrogen fertilizer significantly improved, mainly because of rising prices due to product sales. 
  According to statistics in early July, compared to last year, the price of fertilizer this year, or indeed a great addition to a variety of DAP prices rose less than 20%, the remaining varieties of rose were more than 20%. In contrast, the N and P and K fertilizer was higher than the price increase. The largest increase of nitrogen fertilizer ammonium sulfate, or up to 100%; followed by ammonium chloride, or 72.41%; the most important varieties of urea nitrogen, or 41.98%; two other nitrogen fertilizers and ammonium nitrate or ammonium bicarbonate also exceeded 30%. Of course, prices in July this year the high point, so with a great increase over the same period last year. But even from January to June this year the situation, the nitrogen fertilizer price increase is great. 
  From the cost of production, this year compared to last year coal prices rose 20% to 40% increase in production costs 200 to 300. From June 1 last year, the price of natural gas increased 0.23 yuan per cubic meter, plus April 25 last year, up to 0.08 yuan pipeline fees, totaling up 0.31 yuan, per ton of urea required to produce 1 600 800 cubic meters of natural gas , representing an increase of urea costs 186 ~ 248 yuan, plus price increases, labor wages and other factors, production costs have increased 20 to 50 yuan. Overall, this year's nitrogen fertilizer prices rose more than the cost of production increases, especially those with resources, advantages of scale or levels of management, cost control, good manufacturing enterprises more profitable.
Two companies to "step up" 
  Nitrogen fertilizer prices rose sharply this year, mainly due to: increased production costs, rising international fertilizer prices, agricultural prices, inflation and so on. From the current situation, these factors continue to exist, fertilizer prices can be cautiously optimistic about the market outlook. Therefore, some experts advise, is currently the best in recent years, nitrogen fertilizer industry has entered a period of profitability, be sure to do as a production company two "step up": 
  First, we must step up production. Come and enterprises should seize this opportunity for many years, by all means go full steam ahead to step up production, and more to increase production, achieve high and stable yield, and more profits. The second is to pay close attention to engage in technological innovation. As in previous years, the industry downturn, business difficulties, many companies that do not engage in the transformation. Now corporate money, it is a golden opportunity to engage in technical innovation. From the future development trend, as nitrogen significant excess capacity, is expected to present the good old days of this easy money will not be too long, caught in the future companies may turn a new round of fierce competition, then who's low cost, whoever will be in competition to win. Therefore, enterprises should step up to engage in technical innovation, the production costs down. (Green, condensate)