Industry commentary: Industrial urea has little effect on fertilizer prices

All said that the current high prices of fertilizers, coal, electricity and oil transportation prices continue to rise and agriculture is the main reason for the sharp increase in fertilizer. However, after investigation by industry insiders, it has been found that in recent years, the rapid increase in demand for industrial urea in China has had an impact on the price of chemical fertilizers, especially urea.

According to relevant national standards, except for certain requirements for iron content, alkalinity, sulfate, water incontinence, etc., industrial urea and agricultural urea have no major quality indicators such as nitrogen, biuret, and water content. Too much difference, the urea products of general large and medium-sized enterprises can meet the quality requirements of industrial urea. The relevant national policies have not strictly distinguished and defined industrial urea and agricultural urea. Therefore, it is the urea production company may not be able to distinguish clearly, and the urea produced by itself is finally going to the field or to which company.

Urea goes to companies because more and more companies need urea.

Before the 1980s, the use of domestic industrial urea was limited to chemical reagents, tanning, adhesives, etc., and the amount was small. After the 1980s, with the rapid development of the national economy, the demand for industrial urea began to increase. The large-scale fertilizer plant with an annual output of 300,000 tons of synthetic ammonia and 520,000 tons of urea, which was introduced as a complete set, has provided quality assurance for industrial urea. The amount of industrial urea has grown at an annual rate of over 10% since 2000. At present, industrial urea has been widely used in the fields of wood-based panels, melamine, ceramics, coatings, pharmaceuticals, defogging agents and detergents.

The man-made board is the largest user of industrial urea. According to China's current production capacity, it consumes more than 2.1 million tons of urea annually. Melamine followed, China's production of melamine in 2004 was 246,000 tons, consuming nearly 1 million tons of urea; 2006 is expected to output more than 340,000 tons, annual consumption of urea 1.3 million tons. Demand for industrial urea from other industries is also accumulatively above 1 million tons per year. In this way, the total amount of industrial urea in our country exceeds 4 million tons per year. In 2004, the physical quantity of urea in China was more than 41.8 million tons, that is to say, one-tenth of the urea was used in the industry this year, and this proportion is growing at a very rapid rate.

It makes sense to understand this clearly. For a long time, when referring to urea, some government decision-making departments always think only of agricultural use and neglected industrial urea. However, if we do not attach importance to the growth of industrial urea, we cannot make correct judgments and decisions. For example, at present, domestic melamine enterprises have rapid production expansion, and most melamines are produced by large and medium-sized urea production enterprises using one-step urea at atmospheric pressure. On the one hand, these enterprises enjoy the preferential policies that the state gives to fertilizer companies. On the other hand, they make the final products from urea, which is limited by the price of the country, into melamine, which is not subject to price restrictions. In addition, since last year, the domestic melamine market has shown a trend of oversupply. If it is not controlled, serious excess capacity will occur in a few years. The overcapacity of melamine directly affects urea production.

From this point of view, when the state adopts various measures to stabilize fertilizer prices, it should not ignore the effect of industrial urea on the total amount of urea and the impact on fertilizer prices.

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