The current situation of urea manufacturers and how to find a way forward
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Over the past three years, a large number of new urea production projects have come online in China, resulting in an increasingly severe surplus in urea supply. As a result, China has had to rely on exports to balance domestic supply and demand. In 2013, China’s urea exports reached 6.95 million tons, making it the world’s largest exporter of urea. However, with the expansion and new construction of nitrogen fertilizer production capacity in the Middle East, India, and North America, China’s urea export market will face severe pressure. As China’s urea exports gradually decline, the focus for urea in the future will be on the domestic market. Preliminary estimates suggest that China’s urea exports in 2016 will fall below 10 million tons, a decrease of around 4 million tons compared to 2015 ； Together with the new production capacity, at least 6 million tons of capacity must be phased out to achieve balance for the whole year. Currently, the international and domestic urea markets are facing a supply surplus over demand, resulting in a persistent downturn; as a result, various urea manufacturers are developing new types of urea with enhanced efficiency. So, does the new type of urea with enhanced efficacy really improve efficiency? By how much can production be increased, and what benefits can this bring to the farmers? Is a concept being hyped up?
Can urea-producing plants be converted to produce other products? The prospects for urea are very bleak!
It’s possible. For example, solid compound fertilizers based on urea can be produced, as well as liquid compound fertilizers; vehicle urea can also be manufactured. In terms of organic products, market research is important, along with the company’s ability to sell products in the market.
Enhanced-efficiency urea is not something that’s the result of hype; things like slow-release or controlled-release urea, or urea containing humic acid or peptides are all feasible, and some products of this kind are already available on the market.