With the spring plowing, the urea market once again affects the industry's nerves. Domestic urea prices have rebounded since bottoming out in July 2010, and the profitability of related listed companies has also improved. However, judging from the disclosure of annual results, the overall situation is still not optimistic. Listed companies have also embarked on a journey of transformation. Zhang Jinlin, a director of Luxi Chemical, stated: “Usually, the overall capacity of urea exceeds supply, the production process is not advanced, and the cost is high. It is recommended that the government introduce a policy to guide the transformation of urea production enterprises.†Statistics show that both international and domestic urea prices fell last week, and international urea continued to fall by 2.6% to US$370/t. Domestic mainstream urea manufacturers lowered their prices, and the overall operating rate recovered to more than 70%, but the sales situation was not optimistic. The domestic urea factory, wholesale, and retail prices fell by 1.5%, 1.0%, and 0.5% to 1920, 1960, and 2050 yuan respectively. Ton. Ren Hai, deputy general manager of Hebei Provincial Agricultural Production Co., Ltd. believes that the possibility of downside prices for urea is also very high. At present, the psychological status of distributors is relatively fragile. Utilizing urea does not make money or even cause losses. Grassroots dealers are not motivated to stock urea. ST Tianrun disclosed last week that it intends to openly dispose of urea production equipment. In 2010, ST Tianrun’s operating income and net profit fell by 47.89% and 374.99% from the same period of the previous year, due to the impact of severe overcapacity, urea prices remained low and raw coal prices continued to remain high, resulting in product sales prices. The cost is seriously reversed. ST Tianrun stated that the maintenance of the urea production line for a period of one and a half months began on April 6th, 2010. By May 20th, 2010, the maintenance was basically completed. However, due to the fact that the fertilizer market is still in a downturn, there has been no reduction in losses. Drive production, equipment corrosion is also quite serious. WIND statistics show that as of March 14th, five urea industry companies such as ST Tianrun, Changjiu Biochemical, and Lutianhua have reported annual losses through annual reports or performance forecasts and performance reports. From the public information, the tight supply of natural gas has become a big killer. Lutianhua said that due to the decrease in the price of fertilizer products and the increase in raw material prices, the estimated loss in 2010 will be 140 million yuan to 160 million yuan. After the overhaul of the old system urea production plant of the Ministry of Construction, it has remained in a state of parking for a long time, and the output is larger than the same period of last year. The rate of decline. Coincidentally, Sichuan Chemical's shares were also affected by the tight supply of natural gas, and the main production units were operating at low load for a long time. In 2010, the loss was expected to be between 1.8 and 2.2 billion yuan. According to reports from China Investment Advisors, natural gas supply and price fluctuations have a significant impact on the urea industry. The significant increase in natural gas prices has increased the related production costs. For every 600 cubic meters of natural gas consumed, one ton of urea can be made. If the price of natural gas rises by 0.2 to 0.4 yuan per cubic meter, the cost of producing 1 ton of chemical fertilizer by urea production enterprises will increase by 120 to 240 yuan, for example, natural gas prices will increase by 0.2 yuan/cubic meter and the urea price will not rise or the industry will suffer losses. The reporter noted that in recent years, a number of listed companies in the urea industry have announced a restructuring. ST Tianrun stated that it is necessary to bid farewell to the original single main production of purified fertilizer and transform it into a diversified industrial company integrating new industries, real estate development and property management, commercial trade and modern service industries. Liao Tong Chemical's main business has achieved a major transformation, from one of the major domestic urea producers to the Weapon Group petrochemical platform. In addition, Luxi Chemical also announced that the industrial park was basically completed, and the company completed a major shift from urea to diversified chemical industry. Gao Jinghong, deputy general manager of Hualu Hengsheng, also stated that the company will accelerate the transformation from traditional coal chemical companies to high-end coal chemical companies, and will accelerate the expansion of new industrial chains in the coming years, with the introduction of functional urea and special urea in the fertilizer sector. The contribution rate of the material plate reaches more than half. Hydraulic Pumps,Hydraulic Pump Lever,Efficient Hydraulic Pump Lever,Hydraulic Pump In Car Jiangsu Minnuo Group Co.,Ltd , https://www.minnuo-machinery.com