Urea belongs to the coal chemical industry chain, which is colorless, tasteless, white solid, non flammable and explosive, and mainly used in agricultural fertilizer manufacturing. As a traditional agricultural chemical product, the urea industry started early in China, and the supply-demand relationship has remained relatively balanced for a long time, and the starting load of the industry has also remained above 80% for a long time. However, since 2016, with the continuous tightening of domestic environmental protection policies, China's urea supply side has contracted.

 In addition, a series of policies issued by the state, such as strictly controlling the annual growth rate of fertilizer use, and no longer accepting the preliminary examination of new capacity land in excess industries, have also greatly restricted the growth of urea production capacity. From the current situation, in the future, there are only a few urea projects to be put into production and shut down in China, and the industry pattern is basically stable. As the domestic supply is relatively sufficient, China's urea import volume has been relatively small, while the export volume has continued to increase, among which India, Pakistan, Bangladesh and other South Asian countries are the main buyers of China's urea products. However, due to the relatively low technical requirements for urea production, many developing countries are continuously putting in urea production capacity to speed up the pace of import substitution, which, combined with the negative impact caused by the trade dispute between China and the United States, has significantly reduced the export volume of urea in China in recent years.

Natural gas, coal and oil are the three raw materials for the production of chemical fertilizer, which are usually called gas head, coal head and oil head. The so-called coal head urea is the urea produced with coal as raw material. From the perspective of production capacity structure, at present, coal urea is the main product in China, accounting for 77%, while gas urea only accounts for 23%.

from the output data, the overall urea output of China showed a

In 2012, the operating rate of urea in China reached 91.62%. By 2018, the operating rate in China was less than 70%!