Nitrogen and Phosphorus Fertilizers in China Need to Change Thinking

In the next five years, with the global production of approximately 250 new projects and the expansion of existing plants, it is expected that the potential surplus (purification) of nitrogen and phosphate fertilizers in the world will increase from 3.8 million tons and 1.4 million tons in 2010 to 15 million tons respectively. And 2.9 million tons, China's nitrogen fertilizer, phosphate fertilizer companies need to change their thinking in order to keep up with the situation. This is the news that the reporter received from the "IFA China Symposium" held on September 5.

Michel Prudhomme, head of international trade and production of the International Fertilizer Industry Association (IFA), explained that the world's nitrogen supply will increase from 130 million tons to 157 million tons in 2010-2015, an annual increase of 4%; world nitrogen demand will increase from 127 million tons to 1.41. Billion tons, an annual increase of 2.3%. In the next five years, the contradiction between the supply and demand of nitrogen fertilizers will be prominent.

IFA survey data from around the world shows that from 2010 to 2015, 67 sets of ammonia production facilities will be put into use throughout the world, and 22 will be located in China. The capacity of synthetic ammonia will increase from the current 184 million tons to 229 million tons, an increase of 19%; There will be 60 new urea plants in operation, of which 17 are located in China, and the urea production capacity will increase from the current 184 million tons to 224 million tons, an increase of 25%. “The continuous release of global nitrogen fertilizer production capacity will surely cause severe pressure on Chinese nitrogen fertilizer companies, which rely heavily on export-digestive capacity,” said Zhang Rong, secretary general of the China Nitrogen Fertilizer Industry Association.

Michel Prudhomme stated that global supply of phosphorus ore is expected to reach 257 million tons in 2015, an increase of 26% compared with 2010; phosphoric acid supply will increase to 47.8 million tons (refine, the same below), and total phosphoric acid demand will increase to 45 million tons Global DAP supply will increase to 42 million tons, while total demand will increase to 39 million tons. In the next five years, about 40 sets of newly-built phosphate fertilizer plants will be put into production in 11 countries in the world. By then, global phosphate fertilizer production capacity will further increase, or there will be a full surplus.

Experts from the IFA vice president and Sinochem Fertilizer CEO Feng Zhibin said that in the increasingly globalized trend, further intensified competition, and continuous evolution of the industrial structure, China's nitrogen fertilizer companies will need to accurately grasp new market changes and accelerate the transition in the next five years. The development approach, through the structural adjustment to resolve the outstanding contradictions in development, compress and eliminate backward production capacity and develop downstream products. Nitrogen fertilizer companies through the combination or merger and reorganization of energy companies, agricultural capital circulation enterprises, to achieve complementary advantages, the formation of large-scale enterprise groups. At the same time, the nitrogen fertilizer industry needs to carry out multi-level product development to increase the proportion of large-particle urea, slow- and controlled-release fertilizers, special-purpose fertilizers, and nitro-compound fertilizers, participate in soil testing and formulating fertilization projects, and produce compound fertilizers, compound fertilizers, and formula fertilizers. Wait. China's phosphate and compound fertilizer enterprises should control total output, eliminate backward production capacity, further improve innovation capacity, solve the problems of low-grade phosphate rock utilization, recovery of phosphogypsum, and strengthen the technical transformation of phosphorus chemical industry to accelerate the development of high-end fine phosphorus chemical products. The industrialization process will promote the healthy and sustainable development of the industry.

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