China's position as a major exporter of urea
According to the 2014 IFA data show that China has become the world's largest exporter of urea. In 2014, 40% of the world's urea production in China, the largest producer of Jincheng Anthracite mining group with an average annual production capacity of 13 million tons. China urea export volume reached 13 million 600 thousand tons, accounting for 30% of the total global market. In 2015 China's fertilizer production has resumed growth, pure nitrogen fertilizer production reached 47 million 140 thousand tons, an increase of 7.7%; synthetic ammonia production reached 66 million 460 thousand tons, an increase of 9.8%, urea production reached 71 million tons, an increase of 7.7%, ammonium bicarbonate production of 11 million 990 thousand tons, down 15.1%. Compared with other major urea export countries, China's urea export destination is more concentrated, India will actively bid and purchase urea in China every year.
New capacity release
International competition for urea
In the face of the new production capacity of urea, will lead to a new change in the pattern of Global trade, the competition between countries is more intense. Outlook 2020 trade pattern will be found, with the release of new capacity, the United States and Southeast Asia's self-sufficiency will dramatically increase, import demand will be greatly reduced, as a major agricultural country in India and Latin America is still an important area of urea imports, imports will not change much, but the Chinese exporter in India and the Middle East market the competition will be more intense.
By 2020 there are around 40 million tons of urea expansion plan, of which about 40% of the new expansion of production capacity from China, about 16 million tons, in addition to Africa also has the new production capacity of 6 million tons, about 5 million tons of new capacity release. At the same time, from the 2005-2015 global Urea Export changes can be seen, the exporting country for a round of reshuffle, the rapid growth of Chinese exports, the Gulf region of the Middle East is still the main exporter, exported to Russia and Eastern Europe showed a downward trend.
New capacity put
Accelerate the transformation and upgrading of enterprises
In addition to India is the main export market for China's urea, the west coast of the Americas is also an important export channel. In 2014 the United States imported 1 million 300 thousand tons of urea, Mexico and Chile were imported 815 thousand tons and 443 thousand tons. The remaining part of the main exports to Southeast Asian countries, South Korea imports amounted to 556 thousand tons, 505 thousand tons of Bangladesh imports, imports of 486 thousand tons in Philippines, Pakistan imports 459 thousand tons.
But with the release of new capacity, the United States and Southeast Asia's self-sufficiency ability will be greatly improved, import demand will reduce the amount of Chinese, and the Middle East in the India market competition will become more intense, the pattern of world trade will also change.
At present, the Chinese government on the one hand, through strict regulatory measures and the abolition of transportation subsidies to reduce the dependence on anthracite coal manufacturers. Low cost urea production capacity on the other hand to develop a "The Belt and Road" along with the economic, improve their own competitiveness in the market.
Since 2005, the global urea price has experienced two rounds of fluctuations in the second half of 2015 began a rapid decline. China urea export prices continued low brush, low price can be maintained long domestic enterprises worried topic. Chinese urea production capacity is also changed greatly in recent years: a new production capacity in recent years is more concentrated in the coal rich western regions; two is the urea plant to large-scale development; three is the new device adopts advanced coal gasification technology, the use of non high quality anthracite, coal powder coal, reducing the cost, the reason is because natural gas prices for industrial use, gas from urea does not have cost competitiveness; four is a substantial increase in the rate of utilization of new plant raw materials, production of energy consumption significantly reduced, research shows that in 2015 the industry leader and ordinary enterprises compared to 2008, coal consumption reduced 40% tons of ammonia. Holland cooperative bank agricultural investment goods industry researcher Jiang Hanhui said that by 2020, about 25% of the high cost of production capacity of urea will be low cost production capacity of urea alternative. These changes on the domestic urea enterprises to bring what impact? Jiang Hanhui said that due to a substantial decline in the price of coal, as well as the improvement of raw materials, equipment and technique, the following two types of Chinese enterprise cost competitive with: one is the construction of large coal rich regions in coal chemical enterprises, with the scale and cost advantage; two is the use of advanced coal gasification technology, low energy consumption, close to the port and logistics enterprises with urea advantage. In the current coal prices, leading Chinese coal enterprises have already can reach large U.S. natural gas enterprises gross profit level.