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Urea industry in 2016, has experienced an unprecedented downturn, treasure island information show you review 2016 urea data change what has happened?
Prices fell sharply compared to the same
In 2016 domestic urea market prices fell sharply, once upon a time in the third quarter average price, year-on-year decline in 23.11%. Though as fertilizer to the cancellation of the preferential policies and raw material prices continue to rise, enterprise cost increase amplitude is bigger, but the market supply exceeds demand, in the fourth quarter of the market price the price level will be difficult to return to the same period last year, in the future, though there are ups and downs, but will remain low.
In the third quarter starts fell sharply
Is domestic construction, continue to remain high in the first quarter of 2016, compared to the same period last year increased in the second quarter flat, haven't changed much over the previous year, the third quarter, overhaul or reduction by the enterprise unceasingly, exit the market, even causing starts fell sharply. According to treasure island, 2016 years ago starts at 59.08% in the third quarter, compared with a 9.83% drop in the same period last year. Although starts to be down from last year, but from the point of production, does not have the too big, from the point of treasure island statistics, physical production during the month of September 1, 2016-43.646 million tons, rose 0.14% from the same period a year earlier, cause this state a is the first and second quarter domestic urea market construction is higher, the second is part of the new plant start-up in 2016; So domestic urea market still imbalance between supply and demand. But in the future, low construction status, or has become the norm, realize the balance between supply and demand or late may.
A sharp drop in export quantity
In 2016, the urea in the decline of the export quantity, volume 1 - August 6.74 million tons, compared with a 21% drop in the same period in 2015. From customs data, 1 - in August 2016, in June and August urea export amount more than the same period last year, to some extent in other decline, the biggest decline and even reached 50%. As China's position in the international urea market declining, exports has cannot be release means of excess production capacity, domestic 2016 urea export amount will not exceed 2016 years.
Enterprise maintenance device greatly increased
As countries supply side policy reform in 2016, hit the urea industry, urea maintenance limit production enterprise is much higher than the same period last year, especially in the third quarter, as the market downturn, abnormal condition of enterprise production, exit, reduction and obvious. According to incomplete statistics treasure island, 2016 years ago in the third quarter ever there will be maintenance or shutdown or exit in 69, compared with the same period in 2015 increased by 72.5%, involving nearly 40 million tons of production capacity. Late to strengthening capacity, with the increase of cost, the traditional fixed bed device are listed in it, in the next few years, the urea industry in our country will still has the most enterprise production, until the domestic capacity rationalization.
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