(2) After nearly 60 years of development, China’s nitrogen fertilizer output has ranked first in the world, accounting for about one third of the world's total. There are now 485 nitrogen fertilizer producers in China. China's nitrogen fertilizer industry has advanced proprietary production technology and can produce many varieties of nitrogen fertilizer, including urea, ammonium bicarbonate, ammonium nitrate, ammonium sulfate, ammonium chloride and calcium ammonium nitrate. The output of urea, ammonium bicarbonate, ammonium chloride, ammonium sulfate and ammonium nitrate accounts for 60.3%, 9.2%, 4.5%, 1.2% and 2.4% of China’s total nitrogen fertilizer output, respectively. 76.4% of China's nitrogen fertilizer is produced from coal as the raw material.
(3) China's nitrogen fertilizer production has gradually increased in recent years. In 2009, China’s nitrogen fertilizer output reached 48.637 million tons (pure). Due to the market downturn, China’s nitrogen fertilizer output dropped to 45.21 million tons in 2010. Urea is the main variety of nitrogen fertilizer. In 2010, China’s urea output decreased to 54.70 million tons (physical quantity). Currently, there are 114 urea producers in China, of which 20 have a urea production capacity of over 1 million t/a.
(4) China’s nitrogen fertilizer consumption accounts for one third of the global total. In 2009, China’s apparent consumption of nitrogen fertilizer was 46.638 million tons, but the actual demand was about 38 million tons. In 2010, due to the market downturn, the demand for nitrogen fertilizer reduced significantly, and China’s apparent consumption of nitrogen fertilizer was only 40.86 million tons, down 12% year on year. 88% of nitrogen fertilizer is used in agriculture, and 12% in the industry. In the future, China’s nitrogen fertilizer consumption will continue to grow, but its growth pace will slow down. The annual growth rate of the demand for agricultural nitrogen fertilizer is about 1-2%.
(5) In the first half of 2010, China’s nitrogen fertilizer market was in downturn, and more than half of nitrogen fertilizer producers were in loss. From late September on, driven by the rise of export prices and the drop of supply, nitrogen fertilizer prices have risen rapidly. In 2011, the nitrogen fertilizer market will have many uncertainties, but its overall situation will be better than in 2010.
(6) China’s nitrogen fertilizer industry now faces oversupply, and its overall competitiveness is relatively weak. During the "Twelfth Five-Year" Period (2011-0215), it will carry out structural adjustment, change its development mode, eliminate backward capacity and restrict the growth of new capacity.
[Content]
List of Tables and Figures
Table 1-1: China fertilizer import & export during 204-2010 (kt, pure nutrient) 2
Table 1-2: Planting areas of crop and grain, grain production and fertilizer consumption in China during 2004-2010 3
Table 1-3: Forecast of China fertilizer consumption in 2011 and 2015 (kt, pure nurtient) 4
Table 2-1: Grain Production in China during 2004-2010 (kt) 6
Table 2-2: Grain Minimum Purchase Price in Main Producing Areas 7
Table 2-3: China urea export tariffs in 2010-2011. 8
Table 3-1: Production values of China nitrogen industry during 2010. 12
Table 3-2: Structure of China nitrogen fertilizer in 2010. 13
Table 3-3: China nitrogen output during 2004-2010. 13
Table 3-4: Distribution of ammonia enterprises with different outputs in 2010 (kt, %) 14
Table 4-1: Structure of raw materials for ammonia output (kt, %) 16
Table 4-2: Natural gas output in China during 2005-2010 (billion m3) 18
Table 5-1: Outputs of different nitrogen products during 2004-2010 (kt, 100% N) 19
Table 5-2: Capacity and output of urea in China during 2004-2010 (kt, product) 21
Table 5-3: New projects of urea in China during 2010-2011. 21
Table 5-4: Domestic urea enterprises with capacity higher than 1 million t/ty (kt, product) 22
Table 5-5: China ammonium bicarbonate output during 2004-2010 (kt, product) 24
Table 5-6: Top ten Ammonium bicarbonate enterprises with output in 2010 (kt, product) 25
Table 5-7: China ammonium chloride output during 2004-2010 (kt, product) 25
Table 5-8: Top five ammonium chloride enterprises with output in 2010 (kt, product) 26
Table 5-9: China ammonium sulfate output during 2004-2010 (kt, product) 27
Table 5-10: Import of China nitrogen during 2004-2010 (ton, product) 29
Table 5-11: Output forecast of different nitrogen products in 2015 (kt, 100% N) 30
Table 6-1: Export of China nitrogen during 2004-2010 (kt, product) 35
Table 6-2: Export tariffs of China nitrogen fertilizer in 2010-2011. 35
Figure 3-1: China GDP growth rate during 2000-2010. 5
Figure 2-2: Central government increased four items of rural subsidy in 2006-2010. 6
Figure 2-3: Grain production and nitrogen agriculture consumption directly in China during 2000-2010 8
Figure 3-1: Distribution of China's nitrogen fertilizer production in 2010. 14
Figure 4-1: Change of China’s anthracite output in 2000-2010. 17
Figure 5-1: China’s monthly output of nitrogen fertilizer in 2009-2010. 20
Figure 5-2: Change of China’s urea capacity and output in 2000-2010. 21
Figure 5-3: The scale distribution of China’s urea producers in 2010 (According to their urea output) 24
Figure 5-4: Proportion of different industries in the total ammonium sulfate output 27
Figure 5-5: Prediction of China's nitrogen fertilizer output in 2010-2015. 30
Figure 6-1: Apparent consumption of nitrogen fertilizer in China during 2004-2010. 31
Figure 6-2: Nitrogen fertilizer consumption proportion of crops 32
Figure 6-3: Output and agricultural consumption of fertilizer nitrogen in China during 1995-2010 (not including nitrogen fertilizer used in the production of compound fertilizer) 33
Figure 7-1: Changes of nitrogen fertilizer prices in China in 2005-2010. 39