The competition among urea companies is so fierce, why are there still companies investing?

The domestic fertilizer industry is a very competitive industry. In recent years, most fertilizer companies have been having a hard time! Especially in recent years, the prices of raw materials such as coal and natural gas have increased and * * The price of urea is also controlled. At the end of last year, many fertilizer companies using coal as raw material had urea production costs higher than the sales price, and were eventually forced to stop production. This industry is no better than a monopoly industry, and there are no huge profits!

As mentioned on the second floor, the current production of urea is loss-making. If enterprises with advanced technology and large scale have good management, they may be able to make a small profit, and it is possible to make profits if the gas source is natural gas. Urea is an agricultural product. * * The price control is relatively strict and there will be no "huge profits". * * Another purpose of limiting the price of urea is to let small nitrogen fertilizer companies with backward processes and high energy consumption and high costs go bankrupt or change production, so as to make rational use of them. * * energy. The current use of urea may be a project that was originally applied for and is only now ready for construction, or it may be a large-scale and low-cost process. * * The policy adjustments are also in line with market rules and are curve-shaped. If you lose money now, you will make profits after a while.

After the liberalization of urea prices, it will have an encouraging effect on chemical companies. China is a large agricultural country, and the urea gap is still huge. Moreover, urea is tax-free. Currently, the production of urea is still profitable. But in any case, the final consumer of urea is farmers, * * In the spirit of harmony, it is impossible for urea to make huge profits. This post was last edited by lxq700918 on 2009-4-12 20:30 ]

The development of coal chemical industry is a major industrial direction in China. At present, the development of coal-to-liquids has been affected by* * Due to policy restrictions, the prospect of methanol production is not very optimistic, and ammonia and urea production are more reliable.

Compared with other chemical products, such as dimethyl ether and methanol, urea is easier to store. We will not be forced to suspend production when the market is down.

As one of the products of the coal chemical industry, the market for urea is relatively stable and the risk is low, especially due to* * With policy support, there will not be huge profits, but there will always be small profits that are guaranteed.

Coal chemical industry is a major industry in China. China is a large agricultural country, and the gap in urea is still huge. Moreover, urea is tax-free, so the current production of urea is loss-making. If enterprises with advanced technology and large scale have good management, they may be able to make a small profit, and it is possible to make profits if the gas source is natural gas.

I don’t know anything else, but it is still possible to produce urea from natural gas. The natural gas consumption per ton of urea is generally within 700 cubic meters. After adding energy consumption, labor, finance, etc., the total cost will be known. Compared with the ex-factory price, the profit will not be less than 50%-100%. Let's see how many industries can compare? Of course, the initial investment is high and the quality requirements of personnel are high. This is the threshold. It is a foregone conclusion that natural gas prices will rise in the second half of the year, and they will continue to rise in the future. This is a risk.

The target of urea products is farmers, which determines that it cannot be a hugely profitable industry. It also makes this industry a relatively stable industry and is less affected by the economic cycle. Especially since the financial crisis, the chemical industry has been greatly impacted. Coal-to-methanol has almost been wiped out. However, the urea industry has been favored because of its relatively stable prices and sales!

The project is linked to the market. Since it is going to be launched, it means there is a market. But now you can earn hundreds of dollars per ton of urea, which is pretty good.

Which urea company has better technology? Is the supply of raw materials sufficient? Natural gas resources are very rich in Yunnan, Guizhou, and Sichuan, where the western part of my country is located! If advanced technology (technical transformation is also possible) is used, the profits will still be huge. I know that Chitianhua, which is located at the junction of Yunnan, Guizhou, and Sichuan, and Yuntianhua’s urea benefits are very good! Especially in Chitianhua, the employees are rich and there are many cars! It means that the company’s benefits are very good! In one sentence: Resources + Technology = Money