The phasing out of traditional nitrogen fertilizers will not happen overnight

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The phasing out of traditional nitrogen fertilizers will not happen overnight. Source: China Chemical Industry Information Network. Starting in April this year, all preferential electricity prices for traditional small-scale nitrogen fertilizers in China will be abolished, resulting in a significant increase in costs. The industry estimates that this policy will raise the production cost of urea using smokeless lump coal by 100–200 yuan per ton. Compared with the emerging processes for the continuous gasification of water-coal slurry, the traditional fixed-bed gas generation process, which has lost all its competitive advantages, will now also be completely deprived of policy subsidies. Clearly, it is an undeniable fact that the new urea production process will continue to squeeze the market for traditional products. However, this squeezing and erosion does not happen overnight, but rather evolves gradually over time.