From raw materials, coal, the production of nitrogen fertilizer raw materials is anthracite mainly manufacturers mainly in Shanxi, Shandong and other regions. At present, through the application of pressurized gasification of pulverized coal, many manufacturers to move to Xinjiang and Inner Mongolia and other pulverized coal origin. Gas head, due to the civil and agricultural supply contradictions surge in gas supply by the unstable season and other factors, rising gas prices, the total output of the downward trend is obvious. Nitrogen fertilizer raw materials tend to coal supply. From a cost perspective, in recent years, despite the increase in urea production in China, but the cost of urea production also increased substantially. In 2010-2012, the total cost of urea production increased by 210 yuan per ton. Coal production costs rising trend is not obvious. Excluding this factor, the impact of electricity and shipping costs, urea per ton increase 100 yuan. In March, the government raised transport prices, per thousand kilometers per ton, an increase of 2 times. Freight rates rising, urea production also marks the era of high cost. From a technical point of view, China Nitrogen Fertilizer technology has been in the world leading level, pressurized gasification of pulverized coal unit under construction and put into operation a total of 102 sets, which self-developed 61 sets, 41 sets abroad, a surprising number. 

China Nitrogen Fertilizer Industry Association, according to statistics, as of the end of 2012, synthetic ammonia production capacity of 67.3 million tons of nitrogen fertilizer business 393, 57 the urea plant more than 50 million tons, accounting for 58% of the total proportion of production capacity, a large group of enterprises gradually occupy the mainstream. Total consumption of a modest increase, China Nitrogen Fertilizer total consumption of 54 million tons in 2012, the rapid growth of industrial consumption. New high nitrogen fertilizer exports, exports amounted to 6.95 million tons by the end of 2012, accounting for 17% of the market share, to become the world's largest nitrogen fertilizer exporting countries, export objects as India, the United States and Latin America, some of the major importing countries. 

China's nitrogenous fertilizer industry has three basic characteristics. First, the structure of raw materials, product structure, industrial layout adjustment and technological progress, industrial concentration further improved. Second, nitrogen fertilizer production to meet domestic demand, resource consuming industries, the state does not encourage exports, the export volume control less than 10% of the total output. Third, economic growth, consumption increased urea production costs rise. The direction of future development is expected to nitrogen fertilizer, first of all, the phasing out of preferential policies for industries. Second, subsidies to farmers will increase. Again, some large enterprises underwent a reorganization that will increase the promotion of new products and technologies, market demand increases. Finally, the government encouraged the production of low-carbon environmental protection, environmental protection will be important. 2010-2015 will be the third wave of industrial upgrading, but will continue to exacerbate the problem of excess capacity, "Twelve Five" period net increase production capacity to 700 million tons. As a result, China's nitrogenous fertilizer industry challenges and opportunities, the industry will be more efficient, differentiated, functional direction.