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Operation of the nitrogen fertilizer industry in 2018 Author/Source: Department of Raw Materials Industry, Ministry of Industry and Information Technology Date: 2019-06-11 Clicks: 20 In 2018, the nitrogen fertilizer industry adhered to the new development concept, advanced structural reforms on the supply side of the industry, accelerated the phasing out of outdated production capacity, and actively adjusted its product structure; as a result, the quality of development in this industry improved significantly. First, the industry’s performance has improved significantly. **According to data from the Bureau of Statistics, the main business revenue of the nitrogen fertilizer industry in 2018 was 210.76 billion yuan, representing a year-on-year increase of 12.9% ； The total profit across the industry amounted to 10.55 billion yuan, a year-on-year increase of 471.4%. The profit margin on core operating income was 5.0%, up 4 percentage points year-on-year. Second, the industrial structure has been further optimized. According to statistics from the China Nitrogen Fertilizer Industry Association, by the end of 2018, the national capacity for synthetic ammonia production was 66.89 million tons per year, a decrease of 4.54 million tons per year compared to the previous year. The capacity utilizing advanced gasification technology accounts for 37.2% of the total capacity, an increase of 3.5 percentage points. The production capacity of ammonia produced using traditional gasification processes accounted for 38.1% of the total capacity, a decrease of 4.4 percentage points compared to the previous year. Third, production has decreased. In 2018, the production of synthetic ammonia and nitrogen fertilizers in China continued to decline. Nationwide, a total of 56.01 million tons of synthetic ammonia were produced, representing a 0.5% decrease compared to the previous year ； Nitrogen fertilizer production was 37.94 million tons (on a pure basis, the same below), a 1.6% decrease year-on-year ； Urea production was 52.07 million tons (in physical terms, the same below), a 2.4% decrease compared to the previous year. The output of high-efficiency urea was 2.17 million tons, a year-on-year increase of 6.9% ； Of this amount, 680,000 tons were urea containing humic acid, representing a year-on-year increase of 15.3%. Fourth, export volumes have declined significantly. According to customs statistics, in 2018 China exported 4.706 million tons of nitrogen fertilizers, a decrease of 15.1% compared to the previous year; among these, 2.447 million tons were urea, with a decline of 46.3% on a year-on-year basis. 329,000 tons of imported nitrogen fertilizers were used, a 36.5% increase compared to the previous year; among these, 164,000 tons were urea, with a particularly large increase in imports of this type of fertilizer. 934,000 tons of imported synthetic ammonia were imported, a year-on-year increase of 29.9%. Fifth, market trends have stabilized and started to recover. In 2018, as some production capacity was phased out, the pressure of overcapacity in domestic nitrogen fertilizer production eased. Coupled with factors such as rising raw material prices, nitrogen fertilizer prices increased.