How can urea manufacturers overcome their current difficulties?
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Currently, the national annual production of urea is 70 million tons, while the demand is around 60 million tons per year; there is therefore a surplus of 10 million tons, which contributes to a weak urea market and low prices. Starting from April 20, 2016, the preferential electricity prices for small and medium-sized nitrogen fertilizer producers will be abolished, completing the market-based reform of electricity prices; this undoubtedly adds to the difficulties faced by urea manufacturers. Currently, there is an overcapacity in urea production, with a severe surplus of supply over demand, which has led to a sluggish urea market. What should urea manufacturers do to get out of this predicament?
I hope more urea can be exported, so that there is less competition domestically and companies can have an easier time. :L
Close down those with low production capacity, as they consume a lot of energy and cause significant pollution.
Develop large-grained urea, or powdered urea suitable for aerial spraying for fertilization
Companies with advantages in raw materials should save energy and reduce consumption, and optimize their ammonia and urea production facilities.
Develop downstream products of urea, as well as products such as urea for use in vehicles
Agree with the person above. Where conditions permit, self-generated power units should be used.
Move on from small nitrogen fertilizer projects and take on larger ones; even if one isn’t eliminated this time, it will be eliminated next time, so it’s better to do this sooner rather than later.