China Drying News reported on December 19th, from the meeting of directors of the Anhui Chemical Fertilizer Industry Association held in Linquan County, Anhui Province, that the excess production capacity of urea has aroused great concern from the government. The National Development and Reform Commission, the Ministry of Industry and Information Technology and other related departments At present, industry opinions are being sought on solving the problem of excess capacity.

According to statistics, by the end of this year, the total urea production capacity in the country will reach 71.3 million tons. By 2015~2017, this figure will climb to more than 90 million tons. At the same time, according to forecasts, by the end of the “Twelfth Five-Year Plan”, the national urea demand will be approximately 60 million tons. Excluding factors such as urea export and partial capacity withdrawal, the excess urea production capacity will reach 20 million tons in the future. The urea industry will face a severe test of imbalance between supply and demand in the “Twelfth Five-Year Plan” period and in the future.

Li Chaodong, director of the Anhui Provincial Office of Experts in Heavy Chemicals, pointed out that the reasons for the excessive expansion of urea production capacity in recent years mainly include: First, the industrial maturity is high, there are no technical obstacles for the company to start a urea project, and second, China is a big country producing coal, and it is a urea industry. Provides abundant resources; Third, the development of agriculture has pushed up urea demand; Fourth, industrial regulation and control policies are not perfect; Fifth, industry information is asymmetric, resulting in some urea projects blindly launched. He believes that curbing the overcapacity of urea requires the joint efforts of the government and the market.

Xia Yingyu, Executive Vice Chairman of the Anhui Fertilizer Industry Association, said that in the face of the severe situation of excess urea production capacity, the fertilizer industry in Anhui Province proposed the development policy of “adhere to chemical fertilizers, get out of chemical fertilizers, fertilizers, and diversified operations” and focus on the development of primary chemicals. The products have shifted towards differentiation and refinement. At the end of the “Twelfth Five-Year Plan”, the province’s chemical fertilizers and chemical fine chemicals rate should be increased to more than 45%.

Zhang Rong, vice chairman and secretary general of the China Nitrogen Fertilizer Industry Association, Yang Qingyuan, chairman of the Anhui Chemical Fertilizer Industry Association, Zuo Huitong, deputy director of the Fuyang Municipal Economic and Information Committee of Anhui Province, and Han Shuo, deputy governor of Linquan County attended the meeting.

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