BEIJING, Nov. 18 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, analyzes urea-producing raw material price trends.
Chinese urea production includes natural gas, coal, heavy oil and other raw materials. The Chinese urea industry has also developed a unique supply chain structure; coal is mainly produced by central and eastern enterprises, and urea companies in the west produce oil and natural gas.
Frbiz will mainly analyze Chinese market trends in urea production from coal and natural gas in the second half-year of 2009.
First, there is little room for coal price reduction.
Smoke-free Lump coal prices were firm from January through May of 2009. In Shanxi province, the average prices have been in the area of 900-1100 yuan / ton (include tax), and as some Chinese coal mines, including state-owned key coal mines, resume production in June, the price of smoke-free lump coal will decrease.
Frbiz analyzes that there is little room for price reduction in the second half-year smoke-free lump coal. Coal production, which occurs mainly in Shanxi province, will to continue down at the same time; growth is expected to slow down, which will reduce the pressure on coal prices.
Second, natural gas price reform is imperative.
Frbiz's analyst analyzes that China's current natural gas prices are very low when compared to international standards; how to determine the price is the key challenge China's natural gas industry now faces for its the further development.
Frbiz has discovered that urea production of natural gas prices will rise 0.4 yuan / cubic meter, while the costs of urea production will rise at least 300 yuan / ton.
At present, China's urea production of natural gas enjoys preferential prices, urea enterprises using natural gas as raw material are mainly concentrated in the Southwest and Northwest of China, and prices are also different for Chinese companies purchasing gas. Currently, the lowest prices enjoyed by urea ( http://www.frbiz.com/catalog/05000000/chemicals.html ) manufacturers are in Hainan Island, where the price of natural gas was 0.43 yuan / cubic meter and 0.54 yuan / cubic meter.
If you interested in urea products, please refer to http://www.frbiz.com .
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