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Owing to Great Efforts to Cut Down Urea Capacity, Urea Supply and Demand Possibly Would Be Balanced

China Agriculture Report By CnAgri2017-06-21 09:54:59China Agriculture Report Print

Urea is a kind of fertilize variety whose output always accounts for 40% of the total fertilizer output and also the variety whose overcapacity is serious among fertilizer products.

According to BOABC’s statistics, by the end of 2016, urea capacity (included suspended capacity) had totaled 97.157 million MT, of which effective capacity was 77.10 million MT and there were 20 million MT of “Zombie Capacity”. Influenced by supply-side reform, tightened environmental policies and sluggish market, there would be 5 million MT to exit in 2017; in 2017, only 0.9 million MT of urea is planed to be put into operation, but only 0.3 million MT would be put into operation successfully.

2017 total urea capacity would decrease by 4.7 million MT, and effective capacity would go down to 72.4 million MT. At the operating rate of 85%, urea output would be 61.5 million MT this year. The demand for urea from agriculture would be 40 million MT; the demand from industry would be 17 million MT; the exports would reach 3 million MT. The total demand for urea this year would be 60 million MT. Urea sector possibly would see a balance between supply and demand.


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