Production and Market of Urea in China 2009

Page 1

CCM Data & Primary Intelligence

Production and Market of Urea in China The Second Edition July 2009

Researched & Prepared by:

Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China

Copyright by Guangzhou CCM Information Science and Technology Co., Ltd. (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com

Website: http://www.cnchemicals.com Tel: +86-20-3761 6606

Email: econtact@cnchemicals.com Fax: +86-20-3761 6968


CCM Data & Primary Intelligence Description: Urea is an important nitrogenous fertilizer in China. After several years’ fast development, China has become a top urea production country in the world. While at the same time, Chinese urea industry at present is confronted with many challenges. Therefore, adjustment is urgent for China’s urea industry to survive current economic depression, and Chinese government has also carried out several policies to optimize urea industry.

This report focuses on urea market situation in 2008 and H1 in 2009, as well as unveiling the future of Chinese urea industry based on the current trend.

You can figure out a detailed view of Chinese urea industry in the following aspects: - What is the production situation of China’s urea industry in 2008? - Who are the top manufacturers and key players? - How many new projects are under construction at present or under planning in next five years? - What are the present situation and future prospect of China’s small urea plants? - What are the latest policies in China concerned urea industry and their effects? - Is there any technology improvement of urea production in China? - What is the trend of China’s urea industry? What are the key opportunities? Main content:

No.

Content

Page

Executive Summary

0

I

Introduction and methodology

1

I-1

Introduction to this research

1

I-2

Methodology and source

2

I-3

Definition and glossary

2

II

Production situation of urea

3

II-1

Overview

3

II-2

Capacity and output of urea

3

II-3

Top Urea manufacturers

5

II-4

Small urea plants

8

II-5

New urea projects

11

III

Technology and raw material

16

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CCM Data & Primary Intelligence III-1

Technology of urea production in recent years

16

III-2

Technology light spot in China

24

III-2.1

Large-Granule urea technology

24

III-2.2

Zinc-Urea production technology

26

III-2.3

Coated urea

27

II-2.4

Technical dynamic 2008-2009

27

III-3

Treatment of chemical pollution in the urea plant

28

II-3.1

Major pollutant in production of urea

28

II-3.2

Situation of treatment of chemical pollution

29

III-4

Comparison between Chinese technology and foreign technology

30

III-5

R & D situation in Chinese urea industry & hot areas in the future & active

32

III-6

Technology suppliers of urea in China & their strength areas

34

III-7

Influence of electricity-coal

47

IV

Consumption and IE analysis

49

IV-1

Overview of consumption and export

49

IV-2

Consumption

49

IV-3

IE analysis

50

V

Influencing factors analysis of urea industry in China

55

V-1

Global and domestic economic situation

55

V-2

Policies on urea industry in China

56

V-3

Technology

62

V-4

Competition among manufacturers

63

VI

Forecast on urea industry to 2013

63

VII

Conclusion

65

VIII

Profiles of urea manufacturers in China

66

VIII-1

Shanxi Jincheng Anthracite Mining Group

67

...

...

0

VIII-20

Liaoning Beitai Iron & Steel Group Co., Ltd.

104

Executive summary:

China currently has become a leading urea manufacturer with the largest output in the world.

In 2000, China has depended on imported urea heavily to meet domestic demand, and since then, domestic capacity has enlarged rapidly with CAGR of XXX% for more than five years with increasing domestic demand and favorable policies. While by end of 2008, about XXX million~XXXmillion t/a has become surplus for domestic capacity, with the total capacity of XXXt/a and the output of XXX tonnes.

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CCM Data & Primary Intelligence In recent years, the concentration ratio of China's urea industry has become increasingly higher. There were XXX urea manufactures in China in 2008, among which about XXXmanufactures' capacity was under XXXt/a, while the top XXX achieved their total capacity and output of XXXt/a and XXX tonnes respectively, accounting for XXX% andXXX% of China’s total.

Water solution complete cycle process is mainly adopted by small urea enterprises, while CO2 stripping process and NH3 stripping, which is more advanced, energy and cost-effective, are used by the large ones and the new plants, but still depends on import heavily. The technology limitation is still a bottleneck for domestic urea development.

Urea export constitutes small proportions of China's total urea output under China's adjustment on export tax. In 2008, the total export was only XXX tonnes, accounting for XXX% of the total output.

In the near future, Chinese urea capacity is estimated to continuously enlarge year on year, with the unbalanced situation between supply and demand to be increasingly intense. Besides, enterprises merger and acquisition will witness growth, with large enterprises to acquire the small ones. It is thus predicted that Chinese urea capacity will concentrate in a few urea enterprise groups, while the small ones will shift to other business or close down.

Character of CCM' Report:

The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.

Sample pages:

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IV-2 Consumption Table IV-2-1 Consumption situation of urea, 2008 Classification

Volume,

1 Agricultural Urea

tonne

Percent, %

0000000000

00000000000000000 0000000000000000000000 0000000000 2 Industrial urea

000000

0000000000

000000

000000000

00000

0000000

00000

000000000

000000

000000000000

000000000

00000

0000000000000000000000000000000

000000000

00000

0000000

00000

0000000000 Total

0000000000

0000000

Source: CCM International

IV-3 IE analysis Table IV-3-2 Top10 importers by volume, 2008 Destination

Volume, kg

Share by volume

Value, USD

Share by value

India

0000000000000

000000

00000000000

000000

USA

00000000000

000000

00000000000

000000

Korea

00000000000

00000

00000000000

00000

Mexico

00000000000

00000

00000000000

00000

Philippines

00000000000

00000

0000000000

00000

Vietnam

00000000000

00000

0000000000

00000

Bangladesh

00000000000

00000

0000000000

00000

Taiwan province

00000000000

00000

0000000000

00000

Chile

00000000000

00000

0000000000

00000

Japan

0000000000

00000

0000000000

00000

Total Source: CCM International

000000000000000

000000

0000000000000000

000000


V-2 Policies on urea industry in China Since urea industry plays a crucial role in China as a big agricultural country, Chinese government has issued several favorable policies on the industry to ensure farmers’ income and crop output. Table V-2-1 Favorable policies on urea industry Item Electricity price policy

Policies Electricity price for fertilizer enterprise is 00000 than common industries. 00 000 is charged for fertilizer transported by 0000000 in terms of railway

000000000000000000000

construction fund (RMB 0.000/t*Km) and freight price is relatively 00000 than others (RMB0.0+RMB0.0000/ t*Km) If the plant is in 0000000 region of China and the urea income accounts for over

00000000000000000

00% of the total income, the Income tax is 00% which is lower by 00% than common industries. st

Since 00l. 1 0000, the value added tax of urea is 0000 for manufactures. This 0000000000000000000000 policy is still 0000000 at present. th

In executive meeting of the State Council in 000. 00 0000, the price control was 0000000000000 cancelled and the pricing 000000000 of fertilizer now is gradually forming. 0000000000 00000000000000000000

Since 0000, the government has 000000 export 000 lower than that in 0000.

The government will 00000000 the adjustment 000000 of general subsidies for

00000000000000000000000

agricultural 0000000 and resources.

000000000000000000000000

The government has 000000 protective purchasing price for 000000 products to

00000000000000000000000000

promote crop planting, which 000000 the demand for urea.

0000000000000000000

Urea accounts for over 00% of the total amount of fertilizer storage in 0000000.

0000000000000

The quantity of fertilizer storage in 0000000 is about 0000 million tonnes.

Source: CCM International

Electricity price policy, transportation policy, income tax policy, and value added tax policy have been … It is expected that Chinese government will … in urea industry. -

Price control

Price control was once a useful method to curb high price of urea, but …… -

Export tax

As the fertilizer export policies are not very strictly implemented, domestic urea market ……


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