With the elimination of preferential policies in the nitrogenous fertilizer industry and weak agricultural demand, the market for nitrogen fertilizer has been poor and the continuous low price has accelerated the withdrawal of backward production capacity. Although great progress has been made in the past two years, the domestic urea production capacity is still 77 million tons / year, with an excess volume of about 15%. If the market to pick up in the future, some zombie production capacity may revive, the task is still very difficult to capacity.
The contradiction between supply and demand has been gradually alleviated
Production, with the release of new capacity in previous years, urea production in 2015 reached the maximum value of 70 million 590 thousand tons in recent years, a sharp decline in 2016, a decrease of 12.3%. Supply decline mainly by the preferential policies canceled, serious excess capacity and reduced demand for agricultural and other various factors, resulting in industry operation difficult, a number of backward production capacity to accelerate the exit, and the new production projects are significantly reduced; the demand side, the apparent consumption after a road in 2010 to 2013 in China rose to urea. A high, 2016 apparent consumption comparable to that of 2009. Demand is expected to continue to fall to 51 million 500 thousand tons in 2017.
In the drive of fertilizer under the policy of zero growth, the downward trend has emerged demand for nitrogen, although in the past 5 years, the supply of urea also showed a declining trend, but due to the overall production of nitrogenous fertilizer industry is still excess, so the nitrogenous fertilizer industry still exists the contradiction between supply and demand in the short term, it has put forward higher requirements for: nitrogenous fertilizer enterprises should continue to deepen the supply side structural reform, and actively promote the adjustment of product structure, through the implementation of product differentiation and diversification and innovation, in order to adapt to the development of green, the demand of modern agriculture in china.
Innovation consciousness accelerates stimulation
With the development and operation of a batch of advanced coal gasification technologies, new progress has been made in the adjustment of raw material structure in the nitrogenous fertilizer industry. According to the fertilizer association statistics: by the end of 2016, the coal water slurry gasification process, dry coal gasification, coal gasification technology has built production capacity of synthetic ammonia plant in China reached 20 million 820 thousand tons, accounting for 28.5% of the total production of synthetic ammonia, compared to 2013 increased by 11%.
In the aspect of product structure adjustment, the nitrogenous fertilizer industry has made great progress in promoting the product structure adjustment around the traditional products such as modification, efficiency and recombination, and gradually developed into high-efficiency, functional and liquid. The development of new varieties of fertilizer accelerated, and the development of value-added nitrogen fertilizer and liquid nitrogen fertilizer came to the fore. By 2016, there were 1 million 800 thousand tons of value-added fertilizer to the market, including 900 thousand tons of added urea.
Adversity reveals transformative power
In recent years, the internal and external new situation has caused great challenges to the development of the nitrogenous fertilizer industry, which has caused many enterprises to be in a difficult situation. The whole industry has made strenuous efforts to deal with the difficulties. The nitrogenous fertilizer association has done a great deal of work in promoting the transformation and development of the industry, and a number of outstanding enterprises have emerged in the industry, and they have achieved good results in the face of adversity.
In 2016, the industry as a whole, a large area of losses, there are still a number of enterprises to achieve better profitability. These enterprises have made significant achievements in structural adjustment, high efficiency, energy management, environmental protection and other aspects of governance, has become the industry benchmark and typical. Their experience and practice show that the transformation and upgrading of nitrogenous fertilizer enterprises is an inevitable choice for achieving sustainable development of the industry. Under the guidance of these leading enterprises, the nitrogenous fertilizer industry is on the move, striding forward.