The Decline in Urea Output in the First Five Months of 2017 was 3.02 Million MT, Higher Than That of the Whole 2016

By CnAgri2017-06-21 09:52:12 Print

Fertilizer output during January-May totaled 21.987 million MT, down 7.4% or 2.163 million MT year on year. Of which N-fertilizer output (nutrient) was 13.985 million MT, down 14.9% or 2.449 million MT year on year; P-fertilizer output (nutrient) stood at 7.666 million MT, only up 3.2% or 0.237 million MT; potash fertilizer output (nutrient) registered 2.742 million MT, up 13.5% or 0.333 million MT year on year.

The decline in urea output was biggest. Urea output (nutrient) during January and May totaled 11.483 million MT, down 20.9% or 3.027 million MT year on year, highest. However, 2016 urea output (nutrient) was 32.153 million MT, 2.498 million MT less than 2015.

The main reasons for a drop in urea output are high costs and a serious loss. Because of the calculation of preferential policies for fertilizer production in November, the costs of natural gas for fertilizer increased by more 280 RMB/MT. Although urea prices are not too low and maintain at 1,550-1,600 RMB/MT, but there have been a loss of more 50 RMB for urea production using natural gas as a raw material; in aspect of urea production using coal as a raw material, domestic urea production techniques are divided into fixed bed and coal water slurry. At the current coal price, fixed-bed urea production costs are around 1,600 RMB/MT and the companies with fixed-bed techniques always fall into a loss.