Production of potash fertilizers in China sharply reduces production of urea

In the first two months of this year, China's oil and chemical industry began a good economic operation, with rapid growth in output value, strong market demand, active import and export trade, and accelerated investment growth. Among them, the potash fertilizer production is eye-catching, with an increase of up to 98.6%.

According to a report released by the China Petroleum and Chemical Industry Federation on the 29th, as of the end of February, 26,255 enterprises above designated size in the domestic petrochemical industry achieved a total output value of 1.5 trillion yuan, a year-on-year increase of 32.9%, accounting for 13.7% of the country's total industrial output value. Among them, the output value of the three major industries of chemical industry, oil refining and oil and gas exploitation were 847.87 billion yuan, 441.03 billion yuan, and 176.32 billion yuan, respectively, an increase of 35.5%, 30.7%, and 25.7% year-on-year, accounting for 56.7% and 29.5% of the industry's output value respectively. And 11.8%.

The same impressive performance in terms of production. In the first two months of this year, domestic petrochemical production growth was strong. Among them, potassium, monoammonium phosphate, oil drilling equipment and other products increased by 98.6%, 63.2% and 52.3% respectively. However, the production of urea was only 4.148 million tons, a decrease of 5.6% year-on-year.

“Urea production is mainly due to the closure of export gates by the state.” An industry source told this reporter that since the end of last year, the relevant state departments re-executed the 110% peak season export tax rate, companies would have to pay more than 2,000 yuan per ton for export. The tax, which is the same as the profitability of the urea industry, is tantamount to closing the export channels.

At present, the overall urea market is waning. Production enterprises in some parts of the country have begun to invent large quantities of stocks. Thousands of tons are lost, and many more are tens of tons. In order to reduce inventory, in order to avoid price reduction, many companies have limited production pressure load has become a frustrating move.

In addition, according to petrochemical federations, in the first two months of this year, the operating rate of the oil refining industry was about 85%; the operating rate of ethylene plants was about 103%; the operating rate of soda plants was about 78%; and the operating rate of urea plants was about 80. %; methanol plant operating rate is only about 42%. The reporter learned from people in the industry that, since the second half of 2008, foreign low-cost methanol has been imported into China from a large amount, which has caused the domestic methanol market price to hang upside down with the production cost for a long time, resulting in serious losses in the methanol industry, resulting in many methanol companies being forced to stop production or reduce production.