According to the statistics of Fuzhou Customs, in the first two months of 2007, the export of urea in Fujian Province was 59,100 tons, worth more than 16 million US dollars. Mainly exported to Bangladesh and the United States, the export volume reached 36,300 tons and 22,600 tons respectively.
According to industry insiders, this is mainly caused by the rise in international urea prices. In 2007, it will be an important year for the urea industry, and the entire industry will face greater pressure.
The first is that domestic fertilizer companies will face the challenge of market opening. At present, foreign large-scale fertilizer companies, such as Cargill of the United States and Akon of Russia, have begun to infiltrate into the Chinese market. The cost of producing fertilizers by foreign companies is relatively lower than that of China.
Second, the capacity of domestic urea production companies continues to increase. Judging from the current situation, China's urea production is still in a period of rapid development in the next two years, and the construction facilities are being put into operation one after another. In 2006, the total urea production capacity in the country reached 50 million tons or more, and the output reached more than 46 million tons. In 2007, there will be more than 300. With 10,000 new production capacity, the total output will be far greater than the total domestic demand, and the contradiction of oversupply will be highlighted.
According to industry insiders, this is mainly caused by the rise in international urea prices. In 2007, it will be an important year for the urea industry, and the entire industry will face greater pressure.
The first is that domestic fertilizer companies will face the challenge of market opening. At present, foreign large-scale fertilizer companies, such as Cargill of the United States and Akon of Russia, have begun to infiltrate into the Chinese market. The cost of producing fertilizers by foreign companies is relatively lower than that of China.
Second, the capacity of domestic urea production companies continues to increase. Judging from the current situation, China's urea production is still in a period of rapid development in the next two years, and the construction facilities are being put into operation one after another. In 2006, the total urea production capacity in the country reached 50 million tons or more, and the output reached more than 46 million tons. In 2007, there will be more than 300. With 10,000 new production capacity, the total output will be far greater than the total domestic demand, and the contradiction of oversupply will be highlighted.
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