The second general meeting of the China Chemicals Import and Export Chamber of Commerce and Chemical Fertilizer Branch and the 2010 China Fertilizer Market Summit Forum were held in Beijing from the 15th to the 16th. Su Jing, deputy director of the Department of Foreign Trade of the Ministry of Commerce, said that the phenomenon of overheated investment in China's chemical fertilizer industry deserves attention.
Su Jing said that the current domestic chemical fertilizer industry should pay attention to three issues. First, the production capacity of nitrogen and phosphate tends to be surplus, and investment overheating is worthy of attention. Since 2005, due to demand pull, the production capacity of nitrogenous fertilizer products such as urea has increased rapidly. In the five years, cumulatively added urea production capacity has exceeded 17 million tons. In 2009, the total urea production capacity has reached 65 million tons. At present, there are still 10 million tons of urea production capacity under construction and planning and construction, and the total production capacity of phosphate fertilizer is 20 million tons, and the production capacity is over 1/5. There are still a number of new projects under construction in some places. This phenomenon needs to cause industry authorities to attach great importance to take effective measures to control the blind new nitrogen fertilizer, phosphate fertilizer production capacity.
Second, the degree of industrial concentration is low and the task of adjusting the industrial structure is arduous. At present, the productivity of the top 10 domestic ammonia producers is 13.3%. There are 465 Chinese synthetic ammonia producers and 130 phosphoric acid producers. There are as many as 4350 mixed fertilizer companies with production licenses. On the whole, China's fertilizer industry has many small companies, with scattered layouts, backward installations, and high energy consumption. The task of structural adjustment is very arduous.
The third is that the potash resource has a high degree of foreign dependence. China is the country with the largest consumption of potash, and consumes 8 million to 10 million tons annually. It accounts for 20% of the total potash consumption in the world. It is estimated that with the launch of the 1.2 million-ton potassium salt construction project for annual output of potash fertilizer in Lop Nur in 2011, the self-supply of potash fertilizer in China will increase. In the potash trade, China further improved the management methods of potash fertilizer import and export, maintained the order of potash fertilizer trade, and used domestic and foreign resources to ensure the stable operation of the Chinese fertilizer market.
Li Xiaoni, vice president of the China Minmetals Chemicals Import & Export Chamber of Commerce, stated that the fertilizer industry is a typical resource and high investment industry, and the relevant authorities are working on the study guidance and industry access conditions. At present, the risk of entry is high. Companies that wish to continue investing are cautious.
Su Jing said that the current domestic chemical fertilizer industry should pay attention to three issues. First, the production capacity of nitrogen and phosphate tends to be surplus, and investment overheating is worthy of attention. Since 2005, due to demand pull, the production capacity of nitrogenous fertilizer products such as urea has increased rapidly. In the five years, cumulatively added urea production capacity has exceeded 17 million tons. In 2009, the total urea production capacity has reached 65 million tons. At present, there are still 10 million tons of urea production capacity under construction and planning and construction, and the total production capacity of phosphate fertilizer is 20 million tons, and the production capacity is over 1/5. There are still a number of new projects under construction in some places. This phenomenon needs to cause industry authorities to attach great importance to take effective measures to control the blind new nitrogen fertilizer, phosphate fertilizer production capacity.
Second, the degree of industrial concentration is low and the task of adjusting the industrial structure is arduous. At present, the productivity of the top 10 domestic ammonia producers is 13.3%. There are 465 Chinese synthetic ammonia producers and 130 phosphoric acid producers. There are as many as 4350 mixed fertilizer companies with production licenses. On the whole, China's fertilizer industry has many small companies, with scattered layouts, backward installations, and high energy consumption. The task of structural adjustment is very arduous.
The third is that the potash resource has a high degree of foreign dependence. China is the country with the largest consumption of potash, and consumes 8 million to 10 million tons annually. It accounts for 20% of the total potash consumption in the world. It is estimated that with the launch of the 1.2 million-ton potassium salt construction project for annual output of potash fertilizer in Lop Nur in 2011, the self-supply of potash fertilizer in China will increase. In the potash trade, China further improved the management methods of potash fertilizer import and export, maintained the order of potash fertilizer trade, and used domestic and foreign resources to ensure the stable operation of the Chinese fertilizer market.
Li Xiaoni, vice president of the China Minmetals Chemicals Import & Export Chamber of Commerce, stated that the fertilizer industry is a typical resource and high investment industry, and the relevant authorities are working on the study guidance and industry access conditions. At present, the risk of entry is high. Companies that wish to continue investing are cautious.
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