Post Buying Request
Home > Industry News > China’s Nitrogen Fertilizer Profit Hit 10-Year High in 2018

China’s Nitrogen Fertilizer Profit Hit 10-Year High in 2018

China’s Nitrogen Fertilizer Profit Hit 10-Year High in 20182019.03.12

According to the China Nitrogen Fertilizer Industry Association (CNFIA), nitrogen fertilizer has reached its best result in 2018 during the past ten years with the profit margin of the industry reaching to 10.55 billion Yuan. The overall performance was stable and profitable, though there were challenges like natural gas shortage, environmental policies, rising coal prices, etc.



1.   Production Capacity- total capacity decreased but advanced capacity increased


According to the CNFIA, by the end of 2018, the synthetic ammonia production capacity totaled 66.89 million tons/year with a 4.54 million tons/year year-on-year decrease. The national urea production capacity totaled 69.54 million tons/year, down by 3.22 million tons/year. Among them, the urea production capacity of the advanced coal gasification technology was 25.49 million tons per year, accounting for 36.7% with a 2.4 percent increase while that of the traditional coal gasification process was 23.39 million tons/year, accounting for 33.6% with a 3.5 percentage drop.


2.   Annual Output- nitrogen fertilizer decreased but high efficiency fertilizer increased


China has produced a total of 56.01 million tons of synthetic ammonia, 37.94 million tons of nitrogen fertilizer and 52.07 million tons of urea in 2018, seeing a 0.5%, 1.6% and 2.4% year-on-year decrease respectively. On the other hand, the high-efficiency fertilizer has made a big progress, the output of high efficiency urea is 2.17 million tons, seeing a 6.9% year-on-year growth.


3.   Export & Import-export decreased but import increased


According to the China Customs, China has exported about 4.7 million tons of nitrogen fertilizer seeing a 15.1% year-on-year decrease, while imported 329,000 tons of nitrogen fertilizer, seeing a 36.5% year-on-year growth. The export of urea was 2.447 million tons, seeing a 46.3% year-on-year decrease, while the urea import was 164,000 tons, seeing a 41.95% YoY increase.


4.   Consumption- agricultural consumption decreased while industrial consumption increased


Industrial urea consumption was estimated at 16.8 million tons in 2018, seeing a 7.9 percent year-on-year increase. Industrial consumption of nitrogen fertilizer (urea + ammonium nitrate) was expected to reach 9.28 million tons of pure nitrogen, up by 8.7 percent year-on-year.


5.   Market Trend-stable and upward


In 2018, the average ex-factory price of urea was 1,941 Yuan per ton, up 20.8 percent year-on-year. The average ex-factory price of commercial ammonia was 3,114 Yuan/ton, up 18.4 percent year-on-year. And the average ex-factory price of ammonium chloride was 539 yuan/ton, up 32.1 percent year-on-year.

 

 

Tag
Share It : China’s Nitrogen Fertilizer Profit Hit 10-Year High in 2018 China’s Nitrogen Fertilizer Profit Hit 10-Year High in 2018 China’s Nitrogen Fertilizer Profit Hit 10-Year High in 2018 China’s Nitrogen Fertilizer Profit Hit 10-Year High in 2018