China National Nitrogen Association puts forward six recommendations for ensuring nitrogen fertilizer supply in the next spring
June 12, 2024, 9:21 AM
Sinochem
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Highlights at a glance
At a recent forum hosted by the Ministry of Industry and Information Technology, Gu Zongqin, Chairman of the China Nitrogen Fertilizer Industry Association, highlighted key challenges facing the nitrogen fertilizer industry and proposed six policy measures to ensure sufficient supply for next year’s spring plowing. He emphasized that soaring coal prices are causing widespread losses, while strict energy consumption controls in regions like Inner Mongolia, Shandong, and Jiangsu have forced production cuts. Environmental restrictions during autumn and winter have further reduced urea and synthetic ammonia output, compounding concerns over low national urea production. To address these issues, Gu recommended securing stable coal and natural gas supplies, easing "dual control" energy assessments during critical farming periods, capping electricity price fluctuations at 20%, applying fair environmental policies across all production technologies, and strengthening oversight of commercial fe
According to the China Nitrogen Fertilizer Industry Association, at the recent forum on the production and operation of the chemical fertilizer industry held by the Ministry of Industry and Information Technology, Gu Zongqin, chairman of the China National Nitrogen Association, put forward six policy recommendations for ensuring the supply of nitrogen fertilizer for spring plowing next year.
Gu Zongqin said that the primary problem facing the current operation of the nitrogen fertilizer industry is excessive coal prices. According to the current coal prices, both the intermittent fixed-bed enterprises and the new coal gasification enterprises' urea products have losses to varying degrees. Secondly, energy consumption indicators are restricted. At present, some nitrogen fertilizer companies in Inner Mongolia, Shandong, Jiangsu and other places have been forced to cut production and stop production due to limited energy consumption indicators. Third, the environmental protection production restriction policy has a greater impact. The ratio of urea production capacity to the total production capacity affected by the environmental protection production restriction policy in autumn and winter increased by 16.2%, affecting approximately 1.177 million tons of synthetic ammonia production and 1.231 million tons of urea production. In addition, the current nitrogen fertilizer output is too low, and the national daily output of urea has dropped by 10.11% year-on-year.
Gu Zongqin suggested that in order to guarantee the supply of nitrogen fertilizer for spring plowing next year, the relevant departments should do the following six aspects. The first is to ensure the supply of coal for nitrogen fertilizer production to ensure the supply of nitrogen fertilizer, and at the same time to achieve full coverage of nitrogen fertilizer use coal to reduce the price of coal used for nitrogen fertilizer production; second, to ensure the supply and price stability of natural gas for gas-head nitrogen fertilizer enterprises; third, spring plowing During the fertilizer preparation period, the assessment of the "dual control" indicators of enterprise energy consumption will be relaxed; fourth, nitrogen fertilizer is a product that guarantees people's livelihood, and its electricity price fluctuations should not be treated as high-energy-consuming industries, and the floating range should be limited to 20% or less; fifth, cleaning has been implemented Type-modified fixed-bed enterprises should implement the same environmental protection and production restriction policies as those adopting new coal gasification technology; the sixth is to strengthen the supervision and guidance of commercial fertilizer storage enterprises, and implement the storage tasks.
In this regard, the Ministry of Industry and Information Technology in the forum requested the local industry and information authorities to adhere to problem orientation, increase policy support, give priority to ensuring the supply of raw materials, energy and other production factors for fertilizer companies, and guide companies to rationally arrange production to ensure stable operation of fertilizer production companies; strengthen production Need to connect, build a supply-demand docking platform with industry associations and key enterprises to assist in the advancement of fertilizer allocation and other tasks; monitor and early warning, track and analyze industry trends in a timely manner, find out the real situation, grasp changes in market demand, and help coordinate and solve problems.
At the same time, the Ministry of Industry and Information Technology also requires industry associations to play the role of bridges and bonds, take proactive actions, and guide the industry to strengthen self-discipline. Key fertilizer companies must do a good job in production and operation, do a good job in disaster prevention and epidemic prevention, and ensure continuous production and unabated output.
Gu Zongqin said that the primary problem facing the current operation of the nitrogen fertilizer industry is excessive coal prices. According to the current coal prices, both the intermittent fixed-bed enterprises and the new coal gasification enterprises' urea products have losses to varying degrees. Secondly, energy consumption indicators are restricted. At present, some nitrogen fertilizer companies in Inner Mongolia, Shandong, Jiangsu and other places have been forced to cut production and stop production due to limited energy consumption indicators. Third, the environmental protection production restriction policy has a greater impact. The ratio of urea production capacity to the total production capacity affected by the environmental protection production restriction policy in autumn and winter increased by 16.2%, affecting approximately 1.177 million tons of synthetic ammonia production and 1.231 million tons of urea production. In addition, the current nitrogen fertilizer output is too low, and the national daily output of urea has dropped by 10.11% year-on-year.
Gu Zongqin suggested that in order to guarantee the supply of nitrogen fertilizer for spring plowing next year, the relevant departments should do the following six aspects. The first is to ensure the supply of coal for nitrogen fertilizer production to ensure the supply of nitrogen fertilizer, and at the same time to achieve full coverage of nitrogen fertilizer use coal to reduce the price of coal used for nitrogen fertilizer production; second, to ensure the supply and price stability of natural gas for gas-head nitrogen fertilizer enterprises; third, spring plowing During the fertilizer preparation period, the assessment of the "dual control" indicators of enterprise energy consumption will be relaxed; fourth, nitrogen fertilizer is a product that guarantees people's livelihood, and its electricity price fluctuations should not be treated as high-energy-consuming industries, and the floating range should be limited to 20% or less; fifth, cleaning has been implemented Type-modified fixed-bed enterprises should implement the same environmental protection and production restriction policies as those adopting new coal gasification technology; the sixth is to strengthen the supervision and guidance of commercial fertilizer storage enterprises, and implement the storage tasks.
In this regard, the Ministry of Industry and Information Technology in the forum requested the local industry and information authorities to adhere to problem orientation, increase policy support, give priority to ensuring the supply of raw materials, energy and other production factors for fertilizer companies, and guide companies to rationally arrange production to ensure stable operation of fertilizer production companies; strengthen production Need to connect, build a supply-demand docking platform with industry associations and key enterprises to assist in the advancement of fertilizer allocation and other tasks; monitor and early warning, track and analyze industry trends in a timely manner, find out the real situation, grasp changes in market demand, and help coordinate and solve problems.
At the same time, the Ministry of Industry and Information Technology also requires industry associations to play the role of bridges and bonds, take proactive actions, and guide the industry to strengthen self-discipline. Key fertilizer companies must do a good job in production and operation, do a good job in disaster prevention and epidemic prevention, and ensure continuous production and unabated output.
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June 12, 2024, 9:21 AM
June 12, 2024, 9:21 AM
