Nitrogen Fertilizer Association calls on the state to help turn losses

The reporter learned from the China Nitrogen Fertilizer Industry Association on September 29th that the Association recently submitted to the National Development and Reform Commission an "Emergency Report on Resolving the Current Difficulty of the Nitrogen Fertilizer Industry". In view of the current loss situation in the nitrogen fertilizer industry, the Nitrogen Fertilizer Association recommends that the country further improve its macro-control policies to help nitrogen fertilizer companies tide over the difficulties.

In the “Emergency Report on Resolving the Difficulties of the Current Nitrogen Fertilizer Industry as Quickly as Possible”, the Nitrogen Fertilizer Association made three appeals: First, it called for the country’s reduction of preferential policies for the nitrogen fertilizer industry to be timely and modest. It is necessary to consider the bearing capacity of the nitrogen fertilizer industry and recommend natural gas for chemical fertilizers. And the price of electricity will not be raised for a period of time. The second is to call for an appropriate adjustment of the temporary tariff rate for urea exports, and to appropriately increase the export of urea by lowering the tariff, so as to ease the pressure on the domestic urea backlog. The "Report" believes that since 2005, the global urea market has experienced a situation of oversupply, with surplus of 2% in 2006 and 3% in 2007. By 2010, there will be a surplus of 20.47 million tons, accounting for 12% of the total supply. Even if the country does not impose restrictions on the export of urea, the number of exports cannot be very high. The "Report" suggests that the tentative tariff rate for urea exports should be adjusted from 30% to 15% from January to September, and from 15% to 5% from October to December. The third is to call on the country to further improve the chemical fertilizer reserve system, such as adjusting the time of light storage, from the October of that year to January of the following year is appropriate; increase the supervision of light storage work, so that the balance of light storage and fertilizer on the market; The task of storing fertilizers is once again tilted to the production companies.

According to the nitrogen fertilizer association’s forecast, in the second half of this year, the number of loss-making enterprises in the industry will increase to 279, and the loss will reach 50.9%. The Nitrogen Fertilizer Association warned that this situation is bound to affect the use of spring plowing next year.

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