BEIJING, Feb. 3 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, reports nitrogen fertilizer market supply is adequate.
After the Spring Festival, nitrogen fertilizer market supply will be full sufficient. Himfr analyzes that in the first half of 2010, there may be a bit of tension between market supply and demand, but demand will not exceed supply; urea ex-factory price should be basically maintained at RMB 1,800 ~ 1,900 / ton.
Last year, 2009, was the nitrogen fertilizer industry's most difficult year. Due to the financial crisis, the nitrogen fertilizer industry experienced a long market downturn. According to Himfr statistics, in 2009, synthetic ammonia production was 51.355 million tons, while urea output was 55 million tons, a year-on-year increase of 7.7 percent.
According to Himfr's analysis, in the first half of this year, there will be no significant increase in ammonia production; it will be about the same as last year, about 25.45 million tons. But this year, agricultural and industrial demand will increase, so market demand will be better than in 2009. Therefore, in the first half of 2010, the nitrogen fertilizer (http://www.himfr.com/list-product-Chemicals-05000000-1.html ) market will be a little tight, but there will be no shortages.
As the fertilizer market picks up, the state preferential policies for enterprises in all aspects of fertilizer will be phased out, so expenses for coal, electricity, and freight will all increase, causing the cost of urea to significantly increase. According to Himfr's estimates, the cost of production of coal rose as high as 328 yuan in 2008 and 2009. The lack of confidence in the market in 2009, as well as low prices, resulted in large losses for manufacturing enterprises. As the government promotes reforms in of the price mechanisms for products of national resources in 2010, the price of raw materials will continue to put pressure on nitrogen production, the increased costs will cause this year's nitrogen fertilizer prices to be higher than in 2009.
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