Environmental protection is no stranger to the word, environmental protection storm has not dissipated. The first 3 years of environmental protection began in 2018, and the three year plan to win the blue sky was carried out. The key areas of Beijing, Tianjin and Hebei and the surrounding areas, the Yangtze River Delta and the Fen Wei plain were first included in the key areas of air pollution prevention and control; after that, the special action of "263" in Jiangsu and other places, namely, "two minus six treatment and three promotion", was closely related to the knot. Key areas such as structural adjustment, pollution control, emission reduction, ecological protection, policy regulation, law enforcement and supervision. In the past month, the Jiangsu area has been an environmental high pressure zone. In addition, Hebei, Anhui and other places lag behind production and environmental protection enterprises. Whether it is the urea enterprise, the liquid ammonia enterprise or the downstream chemical fertilizer and chemical industry all the time is faced with the severe test of environmental protection, it can be described as the "dancer" walking on the high pressure line of environmental protection, and the market also fluctuates like a note.

At present, the domestic urea market continues to be bullish, the profit is fully utilized, the price is also being pushed up continuously, and the local price is tentatively rising. In addition to considering the recent demand for the terminal recovery, the construction level of the urea enterprise can not be ignored. According to the normal way of thinking, the price of urea is rising, for example, the market price of the multi landlord production area has already been hovering around 2000 yuan / ton. The price of the Linyi compound fertilizer plant is 2040-2050 yuan per ton. The urea manufacturers should maintain the high load production. Even if there is a maintenance plan, it will be considered to be postponed properly, but it is understood that the recent Jiangsu, Anhui, and the future are well understood. Some urea enterprises in Hebei area are under the influence of environmental inspection, which are required to limit production or stop production. The operating rate of urea manufacturers is low and the local urea source is tight. The trend of downregulation. According to China's fertilizer network statistics, as of now the overall industrial construction rate of the urea enterprises is 58.91%. Under the restrictions of environmental protection and maintenance, it is expected that the short term start rate will not rise to high position and still support the price.

In addition, the rise in urea prices also has the backing of liquid ammonia Market. For example, some local manufacturers in Shandong tend to focus on urea production, and the local liquid ammonia volume is too large, supporting urea keeps a good momentum of development. In addition to the restrictions on the environmental inspection of urea, the effect of the liquid ammonia enterprise is more obvious. The Jiangsu market is limited by the implementation of the "263" special action, the local liquid ammonia, chemical or coking enterprises are limited, some of the liquid ammonia enterprises stop or reduce production, the coking enterprises are basically all destroyed, the construction of chemical enterprises have also been reduced, some of the liquid ammonia enterprises will be born. The production center of gravity turns to methanol or urea; some of the liquid ammonia enterprises in Hebei have been asked to be relocated and have been stopped, and there are still enterprises planned to be relocated in the later period. Some of the liquid ammonia enterprises in the Jiangsu region are affected by environmental inspection, and the equipment is reduced or stopped. At the same time, to see the downstream enterprises of liquid ammonia, the overall industry commencement rate of the compound fertilizer enterprise is 59%, and the majority of small and medium-sized chemical enterprises stop production, which leads to the pressure of liquid ammonia, and most areas open the price down mode. If the fall is too large, some manufacturers will turn some of the production center of gravity to urea or methanol, and then the urea supply will be supplied. The volume will increase, the market will also be affected, such as Shandong, Hebei, a factory to reduce the amount of liquid ammonia, increase the amount of urea, liquid ammonia up by 30-100 yuan / ton.

In short, urea and liquid ammonia are mutually reinforcing and mutually defeating. In the short term, the market trend of liquid ammonia and urea is expected to be influenced by frequent adjustment of supply and demand. The impact of environmental inspection on urea and liquid ammonia is two-way, and it should be treated dialectically. However, in the future, for a long time in the future, for 3 years from this year, the impact of environmental protection on the production of chemical fertilizer and chemical enterprises will not be ignored; it is bound to be walking on the high level of environmental protection. Under the supervision, the requirement of environmental protection is bound to be achieved, laying the foundation for the good market.