10, the national development and reform commission, said gas prices decided to open up fertilizer production. Analysts pointed out that the fertilizers in the cases of severe overcapacity, fully release fertilizer production gas prices, will have big influence to the fertilizer market; The price let go also means that the natural gas price reform again took a step towards marketization of goals.

　　China university of petroleum, said professor Liu Yijun this reform means all straight gas prices have been freed for users; That is 50% of the price of natural gas in natural gas consumption in China has been completely determined by the market.

　　Since 2013, the domestic gas prices steady progress was made in reform of marketization. After the release fertilizer to gas prices, China's shale gas, coal-bed methane, coal gas, liquefied natural gas (LNG), as well as gas prices have been completely let go straight for the users. In addition, natural gas consumption accounted for about 30% of residents in natural gas station USES the benchmark price door station price management, supply and demand both sides can be in the range of rise 20%, down any negotiation to determine the specific price, high degree of marketization. And accounts for about 20% of the total land for city gas pipeline gas gate station prices on government pricing.

　　Gas chemical fertilizers in China each year about 10 billion cubic meters, accounting for about 5% of the total gas. In the process of promoting natural gas price reform in recent years, considering the factors such as chemical fertilizer market downturn, the state for fertilizer enterprises offer certain transition. In 2013 and 2014 to adjust the residents in natural gas prices, gas prices are less chemical fertilizer or not; 2015 let go straight for users to gas prices, gas chemical fertilizer did not let go at the same time.

　　"In practice, a gas supply business enterprise of fertilizer and fertilizer production gas quantity and proportion of controversy, and enjoy special price policy for a long time is bad for promote transformation and upgrading of chemical fertilizer enterprises, and also not conducive to optimizing the resources distribution of natural gas." National development and reform commission price department officials said.

　　Fertilizer is an important means of agricultural production, the release fertilizer to gas prices, will bring the obvious fertilizer prices?

　　Analysts pointed out that the current domestic gas market supply and demand situation, alternative energy prices are low, the market competition is intense, to let go of fertilizer gas prices provided favorable conditions. "At present most gas chemical fertilizer enterprises are liable for peak shaving. The price open, will encourage further guide the enterprise production when gas trough, can enjoy preferential policies expired in the price." Liu Yijun said.

　　The current overall overcapacity in China's fertilizer industry. Urea is the main field of fertilizer to gas, the coal system of urea and urea production capacity of 60 million tons and 22 million tons respectively, and the domestic consumption of urea is only about 55 million tons in 2015.

　　In recent years, China's producer prices for urea falling. Has an average of 1886 yuan per ton from 2013 to 2015, 1608 yuan per ton. Urea average ex-factory price in the first 10 months of this year only 1313 yuan per ton, fell sharply 19.7% year-on-year. This means that even if the local gas price volatility, chemical fertilizer influence changes in the cost of gas system of urea production, also not obvious influence on chemical fertilizer market supply and price.

　　Gas prices, said an official with the national development and reform commission on fertilizer after let go, the relevant departments and natural gas production and business operation enterprise must strengthen the production organization and cohesion of supply and demand, especially to do a good job of winter peak of gas supply; Gas supply enterprises should strengthen the communication with the chemical fertilizer enterprise consultation, or load responsibility for gas chemical fertilizer enterprises, give appropriate discount price, discount linked to stop for, for the time and volume; To transition that has genuine difficulty in chemical fertilizer enterprises give appropriate preferential price, to ensure a smooth exit.