The removal of fertilizer preferential policy voice in the past two years has not stopped, especially the excess capacity led to increasingly harsh operating environment, practitioners hate not tried everything to eliminate excess capacity, the revitalization of the entire industry. Among them, the abolition of preferential policies to enterprises of chemical fertilizer, stand on the same starting line, let the market decide the survival of the fittest "who is to go, who should leave" the voice of the mainstream. In fact, the relevant policies of our country is doing, from the price, freight, natural gas prices gradually rise we can see the government for determination and steps of fertilizer market. But, angry shouting the cancellation of the preferential policy of enterprise, to really implement when some enterprises are afraid of. In this regard, the relevant association is also very helpless, after all the association as a corporate "microphone", one must account for the enterprise, one side even and superior departments to reflect the problems. But in the face of strong market determined, simply do not reflect the association. Take the price, if not the association called for, four or five years ago on the rise, now the relevant departments to iron the heart want to price adjustment, association called for what also didn't simply everything, let the market have the final say. All were careful not difficult to find, from planning economy to market economy, the Association for market attitude in the change slowly, at first nationwide enterprise need protection, but protection for a long time, its own has become the biggest obstacle of the development of the industry problems, if continue, the industry also cannot the healthy development of the enterprise, also sad. Therefore, the elimination of backward production capacity, purify the industry as a whole team to be a countermeasure of enterprise self protection, at this level, the relevant industry associations and enterprises have agreed. But the question now is, by setting a threshold, adjust the price way to remove excess capacity policy has introduced, but the industry a word to describe: didn't see what companies fall. In the final analysis lies in two aspects: one is the market is not big enough, the two enterprises of self rescue and new capacity control. At present, the main tone adopted process of China's fertilizer market in the "small step is slow", rise to the food security strategy material security, gradual market-oriented type is very necessary, cannot make it rigidly uniform, cannot completely weaned, but the problem is, mild type adjustment not only out of production capacity, but the increase of production capacity, or that the annual new capacity more than the elimination capacity. At the same time, the chemical fertilizer production device of huge investment, often involving the government, tax, bank and so on, even if there is a threshold, even adjusting price, freight, even if the loss making enterprises should be self rescue, continue to work. Take a urea project in Inner Mongolia at present, for example, by early 30% capital injection, the other 70% rely on bank loans and other means of financing to solve. The final settlement is not measured at cost but raw material cost calculation, machinery, plant, equipment is a fixed cost, even if the machine does not rotate also must produce cost, once the machines are running, only need to calculate how many other materials, without considering the cost, as in the above line started is cost-effective. In other words, the enterprise started, less loss, don't start, enterprises Jukui, but banks do not agree not to start. So for the present enterprise began to speak, especially new capacity would never choose to stop production, the big five affiliates and social effect to the government, the bank as the representative point of view, will not choose to stop production, unless the overhaul. So, for the domestic chemical fertilizer enterprises, the abolition of preferential policies can also be bigger, set the access threshold intensity can be played harder.