The domestic nitrogen fertilizer industry has entered an era of intense competition

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China’s nitrogen fertilizer production capacity exceeds 63 million tons, of which the excess capacity is over 10 million tons. Since nitrogen fertilizers possess both resource and energy characteristics, they are considered **agricultural products that require special attention due to the need to ensure a stable domestic supply and prices**, while at the same time being high-energy-consuming products. Against the backdrop of tight electricity supply and increasing pressure from rising energy prices, the nitrogen fertilizer industry certainly cannot rely on **relaxing export policies to achieve a balance between production and sales through exports. In the foreseeable years, the domestic nitrogen fertilizer market will be highly competitive. 　　 To survive and thrive, companies in this industry must do everything in their power to avoid being eliminated. In fact, upon closer inspection, a variety of competitive contests within China’s nitrogen fertilizer industry have already begun. Some coal industry groups that enter into such marriages attempt to rely on stable and inexpensive raw coal in order to compete with their rivals ； Some are carrying out upgrades to their key gasification equipment in an effort to reduce coal consumption and enhance the competitiveness of their products ； Some strive to create well-known trademarks in order to take advantage of the brand effect to command higher prices for high-quality products ； Some strictly control various expense expenditures in an effort to boost profits from their core business ； Some have both, striving to earn excess profits... and so on, the list is endless. 　　 Although nitrogen fertilizer companies employ various tactics to compete and seek ways to survive, each one does so in its own unique way. However, the author believes that the ultimate winners should be those companies with a clear technical advantage, as they are able to grasp the key moments and strategies that lead to victory. For example, in the selection of processes for producing nitrogen fertilizers, anthracite and natural gas have long been considered classic raw materials in this industry; their nearly century-long history of use has also led many companies to regard them as the preferred choices for such purposes. However, in recent years, some research institutions and manufacturing companies have challenged this approach, attempting to overturn the traditional processes used for producing nitrogen fertilizers ； Despite the twists and difficulties, success was ultimately achieved. This process uses bituminous coal as raw material and pure oxygen continuous pressurized gasification technology, bringing about a revolutionary change in urea production. Its pilot plant has been operating successfully for over 200 days; this is the 800,000-ton urea production facility located at Jiangsu Linggu Chemical Co., Ltd. 　　 It should be noted that raw coal accounts for a significant proportion in the cost components of urea production. According to Jiangsu Linggu Company, this new process increases the coal conversion rate from 80% to over 99%. The significant improvement in the utilization rate of raw coal results in a reduction in the manufacturing costs of nitrogen fertilizers. Compared to older processes and equipment, the unit cost is reduced by at least 300 yuan, a figure that is certainly attractive to those in the industry and demonstrates a clear competitive advantage. On the one hand, this shows that companies can obtain equivalent excess profits in the market; on the other hand, it completely changed the fate of nitrogen fertilizer companies located far from the anthracite sources. At the same time, the new process has also reduced power consumption to its minimum; the electricity required per unit of urea is only 180 kilowatt-hours, compared to 1100 kilowatt-hours for the old equipment. It is evident that breaking through process bottlenecks means breaking through the barriers that control a company’s fate, allowing one to take control of their own destiny – and this is the most reliable way to build a company that can last for centuries! 　　 Now, many nitrogen fertilizer companies are struggling hard, with constant complaints and grievances. They aspire to favorable policies; they hope for support, and they look forward to export opportunities opening up. However, distant water cannot quench immediate thirst; there has never been a savior in the world, and one must ultimately solve their own problems themselves. In fact, companies in this industry can follow the example of Jiangsu Linggu Company by carrying out rapid and bold technological upgrades in order to secure a strong position in the industry as soon as possible. One can also rely on personal or societal resources to find alternative approaches and seek other effective ways to reduce costs, thereby enhancing survival capabilities. But one must absolutely not indulge in complaints, as the nitrogen fertilizer industry has entered an era of intense competition. It is certain that the pressure for integration in the nitrogen fertilizer industry will be unprecedented in the future; nitrogen fertilizer companies that lack specialized skills will surely lose at the starting line of market competition.