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Profits dropped by 53.7% on a year-on-year basis, while losses increased by 34.1% on a year-on-year basis. According to Sinochem News, the 10th meeting of the 7th council of the China Nitrogen Fertilizer Industry Association was held in Xi’an on December 19. The messages conveyed at the meeting indicate that the nitrogen fertilizer industry will face significant economic pressures in 2025, with most manufacturers facing sales difficulties and severe losses. From January to October, the total profit of enterprises above a certain size in this industry was 4.04 billion yuan, a 53.7% decline year-on-year; the losses incurred by loss-making enterprises amounted to 5.37 billion yuan, a 34.1% increase year-on-year. Gu Zongqin, president of the Nitrogen Fertilizer Association, noted that nitrogen fertilizer prices remained stable in the first half of the year, and the industry successfully fulfilled its task of maintaining stable prices and supply. However, the market price of nitrogen fertilizers has dropped significantly compared to the same period last year, being considerably lower than that of other types of chemical fertilizers; as a result, the overall profitability of the industry is poor. Since the second half of the year, the industry’s prosperity level has been significantly lower than that of the same period last year. Although the orderly export of urea has alleviated the pressure on domestic nitrogen fertilizer supply, as new production capacities come online one after another, and coupled with the delay in the planting season in some areas of the country due to autumn floods, the domestic nitrogen fertilizer market is experiencing a clear surplus of supply over demand. As a result, fertilizer prices continue to fall, and most nitrogen fertilizer manufacturers are suffering heavy losses. Gu Zongqin explained that, in terms of the industry’s performance, first and foremost, there has been a significant increase in nitrogen fertilizer production. According to the association’s statistics, from January to October, the country produced a total of 64.64 million tons of synthetic ammonia, representing a year-on-year increase of 6.5%; nitrogen fertilizer production amounted to 44.472 million tons, with a year-on-year increase of 8.9%; urea production reached 60.358 million tons, showing a year-on-year increase of 9.5%. The production volumes of synthetic ammonia, nitrogen fertilizers, and urea all increased by more than the same period last year. Secondly, the price of nitrogen fertilizers continues to decline. According to the association’s statistics, the average ex-plant price of urea from January to October was 1,702 yuan per ton, representing a year-on-year decline of 18.9%. “Since May, urea prices have been on a downward trend, dropping to 1,542 yuan per ton in mid-October. Subsequently, as the fourth batch of urea was exported and a seasonal stockpiling program for fertilizers was launched, prices began to recover; by the last week of November, the average ex-factory price rose to 1,604 yuan per ton, but it remained at a low level. ”Gu Zongqin said. The price of raw coal has also seen a slight increase. According to the association’s statistics, from January to October, the average price of smokeless lump coal at the factory was 981 yuan per ton, a decrease of 11.5% on a year-on-year basis; the average price of bituminous coal at the factory was 732 yuan per ton, with a decrease of 23.2% on a year-on-year basis. Although coal prices were generally lower than those in the same period last year, they have been rising steadily since June. Taking bituminous coal as an example, its price reached 840 yuan per ton by mid-November, representing a difference of 134 yuan per ton compared to the lowest price of the year. Overall, a combination of factors such as increased supply, rising raw material prices, and falling product prices has led to a significant decline in the profitability of nitrogen fertilizer companies. According to statistics, from January to October, the total profit of enterprises above a certain size in this industry was 4.04 billion yuan, a decrease of 53.7% on a year-on-year basis; the losses incurred by loss-making enterprises amounted to 5.37 billion yuan, an increase of 34.1% compared to the previous year. Despite a recent rise in urea prices, the industry as a whole still faces significant operational pressures. Gu Zongqin said that in order to resolve the structural imbalances on the supply side, **efforts are being accelerated to implement policies aimed at addressing \"competitive intensification,\" including measures to strengthen the management of major projects in the petrochemical industry. Coal-based synthetic ammonia and urea are also likely to fall under strict project approval procedures. Companies should actively respond to the **latest policy requirements, take into full account domestic and international supply and demand conditions, avoid large-scale capacity expansion, and prevent further deterioration of \"cut-throat\" competition.