Urea Production and Operating Rate in January 2024

Urea Production: In January 2024, the monthly production of urea in China was approximately 5.0655 million tons, marking a 2.38% decrease compared to the previous month and a 9.67% increase year-on-year. During the early part of this month, several previously halted enterprises gradually resumed production, especially those in the ammonia synthesis sector. Additionally, there were fewer planned maintenance operations, resulting in an overall upward trend in daily production. The industry is starting to experience supply pressure.

In January 2024, the daily average production of urea was about 163,400 tons, reflecting a 2.38% decrease from the previous month's 167,400 tons, but a 9.67% increase compared to the same period last year.

Urea Operating Rate: In January 2024, the monthly average operating rate of the domestic urea industry was 74.05%. This represents a 5.22% decrease compared to the previous month but a 2.78% increase compared to the same period last year. Although the monthly operating rate of the domestic urea industry experienced a slight decline, it remained higher than the level seen during the same period last year. During the first half of the month, many ammonia synthesis units were affected by natural gas restrictions, leading to shutdowns for maintenance. Additionally, some units faced short-term malfunctions, resulting in a low operating rate for the industry. In the latter half of the month, maintenance units gradually resumed operations, leading to a recovery in the industry's operating rate. It is expected that in the coming month, more maintenance units will resume operations, leading to an increase in capacity utilization.