2013 domestic urea production capacity to 80.7 million tons , while the market demand of about 65 million tons of urea , the problem of excess concern. Latest data from China Nitrogen Fertilizer Industry Association show that in 2013 the national fertilizer industry, the main business income of 287.63 billion yuan , an increase of 2.3 % over the previous only ; profit of only 6.64 billion yuan over the same period dropped significantly by 51.4% . The annual nitrogen fertilizer production and operation more difficult , low urea, diammonium phosphate and other elemental fertilizer prices, a greater impact on the fertilizer market .

Not long ago, held in Beijing in 2014 from the spring fertilizer market situation analysis meeting outgoing message , although the fundamentals of the industry has not fundamentally changed, but this spring, a certain degree of partial positive : First, the 2013 winter wheat acreage than last year nationwide an increase of more than 100 acres , 95 acres of winter oilseed rape increased . Country before winter wheat , the second category seedlings ratio reached 85.6% , higher than the five -year average of nearly 10 points. Second, the 2013 gas companies urea production 18.31 million tons , accounting for 27.3% of total production of urea . As natural gas price reform , nitrogen gas companies will be very limited , gas prices will force some companies to improve downtime , industry oversupply situation to a certain degree of ease. Again, in 2014 the country further relaxation of export tariffs , creating a new space for urea exports. Finally , early in 2014 , rail freight prices rise again , both from raw material purchase or sales , improve rail freight will increase fertilizer companies operating pressure. The industry have suggested that domestic enterprises in demand for raw materials or products to build capacity and help resolve the contradiction product off-site sales and transportation cost increases . To this end, the nitrogen fertilizer business could seize the favorable opportunity to actively carry out spring fertilizer supply work .

At present , the domestic nitrogen fertilizer industry has formed a Shanxi Coal , Hubei Yihua , Sichuan Chemical Holdings and dozens of over one million tons of urea production capacity of large enterprise groups , accounting for 68% of total capacity , but with the industry, "second Five Year Plan" compared goals made ​​, there are still large room for improvement . In the case of nitrogen fertilizer industry into cost-competitive backdrop, companies have scale advantages will continue to expand , small businesses or large enterprises out of the market or be merged , despite the limited room for growth in the industry as a whole , but the advantages of enterprises through mergers and acquisitions will further development.