Increase the cost of urea nitrogen fertilizer industry: promote the low operating rate rose to support the market boom

for nearly three months to the urea industry boom, lower work rate given strong support prices, leading enterprises will fully benefit from. Urea as a nitrogen fertilizer, the nitrogen content is the highest, if the downstream oriented agriculture, there is a rigid demand is irreplaceable, if facing the industry, is an important raw material for many chemical products.

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After May 2012, urea has experienced a period of four years the downward cycle, due to capacity increase too fast, the decline in coal prices, food prices, the international price of urea downstream etc..

To mid August this year, the lowest price of domestic urea has been less than 1200 yuan / ton, the whole industry is facing a loss or difficult to profit. But in the coal prices rose, preferential tariff, cancel transportation costs, environmental remediation, inventories continued to decline under the superposition of multiple factors, the past three months, urea opened a wave of relatively strong rebound.

In 2017, the downstream demand and exports is expected to decline slightly, but in the aspect of raw material cost, transportation cost, environmental protection supervision under pressure, domestic urea device can only maintain low operating rate, but will make the urea product supply slightly tight situation, the price to bring strong support.

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At present, promote the supply side reforms in the country, only the production capacity of urea technology behind the high cost of facing elimination process leading low energy enterprises will gain considerable profit.

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