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On May 22, 2024, the National Nitric Acid and Ammonium Nitrate Industry Conference and the Calcium and Magnesium Nitrate Fertilizer Sub-conference were held in Changzhi, Shanxi. The main task of the meeting is to summarize last year’s work, analyze the current problems and challenges, and exchange experiences and insights from various enterprises. Everyone offered their ideas and suggestions to clarify the direction and measures, worked hard to expand the market, and promoted the high-quality development of the industry. Gu Zongqin, president of the China Nitrogen Fertilizer Industry Association, attended the meeting and delivered a keynote speech titled \"Accelerating the Development of New Forms of Productive Forces to Achieve High-Quality Growth in the Industry.\" In his speech, he noted that last year, China’s nitric acid and ammonium nitrate industry operated steadily overall: production remained stable, safety conditions were under control, and market prices were reasonable and better than expected. The entire industry achieved satisfactory results. However, affected by various internal and external factors, the industry faces a series of new problems and challenges such as weak demand and low competitiveness. The year 2023 was an extremely difficult one for the petroleum and chemical industry, with both revenue and profits in this sector declining throughout the year. Against such a challenging backdrop, China’s nitric acid and ammonium nitrate industry managed to overcome numerous difficulties and achieve decent operational results, which is truly remarkable. The total supply has increased significantly. Gu Zongqin noted that 2023 was a period of rapid growth in nitric acid production capacity, with a large amount of new capacity coming online. According to statistics from the China Nitrogen Fertilizer Industry Association, in 2023 China’s nitric acid production capacity reached 20.89 million tons per year, exceeding 20 million tons per year for the first time, with a year-on-year increase of 5.7%. Of this, the new production capacity is 1.6 million tons per year, while the capacity being phased out is 470,000 tons per year. By the end of 2023, China had 76 nitric acid production enterprises with 118 nitric acid production units, resulting in a nitric acid output of 14.99 million tons, a year-on-year increase of 6.0%. The production capacity using the double-pressure process was 20.01 million tons per year, accounting for 95.5% of the total production capacity ； The production capacities of the medium-pressure process and the high-pressure/comprehensive process remain at 700,000 tons per year and 240,000 tons per year, respectively. Due to security and regulatory policies, the approval process for expanding ammonium nitrate production capacity is strict, resulting in few new projects being built. By the end of 2023, the production capacity was 9.91 million tons per year, a 5.3% decrease compared to the previous year; the reduction in capacity came from capacities that had been out of use for more than three years. The production of ammonium nitrate increased significantly, reaching 6.267 million tons for the whole year, a 5.2% increase on a year-on-year basis – the highest growth rate in the past three years. The total amount of nitrate-based fertilizers showed both increases and decreases; the production of triple-nitrate compound fertilizers was 3.3 million tons, remaining unchanged on a year-on-year basis ； The production of calcium ammonium nitrate was 2.6 million tons, representing a year-on-year increase of 8.3% ； Calcium nitrate production amounted to 650,000 tons, a decrease of 4.4% year-on-year ； The production of magnesium nitrate was 340,000 tons, a decrease of 2.9% year-on-year. The ammonium nitrate market is performing better than expected. Gu Zongqin pointed out that due to the poor performance of the petrochemical industry and falling raw material prices, the price of ammonium nitrate continued to decline from January to July 2023, with a drop of nearly 500 yuan per ton. To maintain market stability, key ammonium nitrate producers strengthened market coordination and regional cooperation, adhered strictly to industry self-regulations, and avoided excessive competition and price wars; as a result, ammonium nitrate prices began to stabilize and rise starting in August. According to the association’s statistics, the average ex-plant price of porous ammonium nitrate throughout 2023 was 2,767 yuan per ton, representing a 7.0% decline compared to the previous year ； The average ex-plant price of industrial ammonium nitrate was 2,688 yuan per ton, a decrease of 5.4% on a year-on-year basis ； The average ex-plant price of liquid ammonium nitrate was 2,614 yuan per ton, a decrease of 1.8% year-on-year. As the main raw material for ammonium nitrate production, the average price of bituminous coal at the factory gate is 1,101 yuan per ton, a decrease of 19.8% on a year-on-year basis ； The average ex-plant price of liquid ammonia was 3,407 yuan per ton, a decrease of 13.5% on a year-on-year basis, with the decline being greater than that of ammonium nitrate. The scale of the devices is becoming larger. Gu Zongqin said that among the 6 nitric acid production units put into operation in 2023, 3 of them have an annual production capacity of 360,000 tons. The 360,000 tons per year nitric acid plant, independently designed by Sichuan Jinxiang, will complete its installation and commissioning by the end of June 2024. By the end of 2023, there were 6 units with a nitric acid production capacity of 360,000 tons per year, accounting for 10.3% of the total production capacity ； 29 sets of plants with a capacity of 270,000 tons per year, accounting for 37.4% of the total capacity ； 52 units with a capacity of 150,000–270,000 tons per year, accounting for 37.2% of the total capacity ； There are 31 units with a capacity of less than 150,000 tons per year, accounting for 15.1% of the total production capacity. In the future, nitric acid production facilities will continue to evolve towards larger scales. Shaanxi Gas Turbine Group has completed the design for a plant with an annual capacity of 450,000 tons, and is currently working on the technical preparations for a plant with an annual capacity of 600,000 tons. The ability for technological innovation is continuously improving. Gu Zongqin said that in recent years, technological innovation in the nitric acid and ammonium nitrate industry has seen significant progress. This includes the successful development of processes for decomposing phosphate rock, ferromanganese ore, nickel ore, etc., using nitric acid instead of the traditional sulfuric acid method, thereby enabling the recycling of nitric acid ； The first domestically developed new type of oxidation furnace – waste heat boiler was successfully developed and put into use at Hengli Petrochemical in 2023; it achieves an energy-saving effect by increasing steam production by over 15% compared to traditional oxidation furnaces ； The turbine-driven system of the four-in-one nitric acid production unit was successfully replaced with an electric motor drive, which not only resolved the company’s shortage of steam but also yielded significant savings in energy consumption and costs. After the renovation of the plant with a capacity of 270,000 tons per year, the amount of steam supplied externally increased from 12–14 tons per hour to 46–48 tons per hour, resulting in annual operating cost savings of nearly 20 million yuan ； Production processes for high-purity potassium nitrate, sodium nitrate, and sodium nitrite have been successfully developed, resulting in a more diversified product portfolio. In addition, the technical challenges associated with the long-distance transportation of liquid ammonium nitrate were overcome, enabling a transportation range of up to around 2,600 kilometers. The level of safety management continues to improve. Gu Zongqin pointed out that in 2023, the Ministry of Emergency Management issued the \"2023 Work Plan for Special Governance of Safety Risks in High-Risk Sub-sectors.\" This plan proposed a long-term mechanism for preventing and controlling safety risks in such high-risk sub-sectors, based on the \"2+X\" framework: the 2 refer to ammonium nitrate and nitrated products, which are subject to inspection every year, while X denotes other sub-sectors that are selected each year depending on the circumstances. Ammonium nitrate is a key product in the high-risk segment, and it is subject to inspection every year. **The relevant authorities attach great importance to this, and rigorous and high-standard safety inspections have now become the norm. Since 2021, ammonium nitrate has undergone three rounds of nationwide safety inspections, each time more in-depth and stricter than the previous one. Last year, the Ministry of Emergency Management conducted special inspections of 24 ammonium nitrate production enterprises and 4 nitro-compounded fertilizer enterprises, identifying a total of 499 potential hazards and 269 serious issues. It recommended that 5 enterprises cease operations for rectification, while 22 enterprises were advised to make corrections within a specified time frame. To be honest, through continuous and in-depth specialized safety inspections, the potential risks associated with ammonium nitrate enterprises have been significantly reduced, and their safety standards have improved markedly.