Urea Production and Operating Rate in December 2023

Urea Production:
In December 2023, the domestic monthly production of urea in China was approximately 5.1891 million tons, a 2.64% decrease month-on-month, but a 15.06% increase year-on-year. From January to December 2023, the total domestic urea production accumulated to 61.0763 million tons, which is an increase of 4.6939 million tons compared to the same period last year (56.3824 million tons), marking an 8.33% year-on-year increase. This month, the production of the units slightly declined compared to the previous month, primarily affected by the second half of the month when gas-head enterprises gradually ceased operations for maintenance, combined with a low-demand atmosphere and poor market sales, leading to many enterprises temporarily stopping production, reducing output, and decreasing daily production.

In December 2023, the average daily production of urea was about 167,400 tons, a 5.78% decrease from 177,700 tons in the previous month, but a 15.06% increase compared to 145,500 tons in the same period last year.

Urea Operating Rate:
In December 2023, the average monthly operating rate of the domestic urea industry was 79.27%, a decrease of 1.47% from the previous month, but an increase of 13.54% compared to the same period last year. The average operating rate of the domestic urea industry from January to December 2023 was about 78.90%, up 9.47% from 69.42% in the same period last year. The monthly operating rate of the domestic urea industry slightly decreased, but remained higher than the level of the previous year. This month, many enterprises experienced short-term shutdowns of their units, coupled with gas-head units ceasing operations for maintenance, leading to a significant decline in daily production and the market supply reaching a low point by the end of the month. It is expected that the capacity utilization rate will continue to operate at a low level in the following month.