Synthetic ammonia production continues to increase, and industry development prospects are good

Synthetic ammonia, also known as industrial ammonia production, refers to ammonia that is directly synthesized from nitrogen and hydrogen using a catalyst under high temperature and high pressure. Synthetic ammonia appears as a colorless gas with a relatively strong pungent odor. Synthetic ammonia has relatively active chemical properties and can react with acids to form salts. It is a basic chemical product.

According to the “2022-2027 Synthetic Ammonia Industry Development Prospects and Investment Strategic Planning Analysis Report released by the Industrial Research Center, the synthetic ammonia industry chain The upstream supplies raw materials, including coal, nitrogen, hydrogen, etc. In recent years, my country’s coal production has continued to grow. According to data from the National Bureau of Statistics, my country’s industrial raw coal production above designated size will be 4.07 billion tons in 2021, a year-on-year increase of 4.7%. Benefiting from the sufficient supply of raw materials, my country’s synthetic ammonia industry has developed rapidly. According to data from the National Bureau of Statistics, my country’s synthetic ammonia production reached 59.092 million tons in 2021, a year-on-year increase of 15.5%. In terms of production capacity, due to the deepening of supply-side structural reforms and national environmental protection policy restrictions, my country’s synthetic ammonia production capacity has shown a slow downward trend, falling to 64.80 million tons/year in 2021.

In terms of import and export, due to factors such as lower production costs and weakening market supply and demand, the scale of my country’s synthetic ammonia imports continues to shrink. According to statistics from the General Administration of Customs of China, my country’s synthetic ammonia imports reached 809,000 tons in 2021, a year-on-year decrease of 30.0%. Indonesia, Malaysia and Saudi Arabia are my country’s main importers of synthetic ammonia, accounting for nearly 95.0% of the total import volume.

Synthetic ammonia is mainly used in agriculture and industry. In the agricultural field, synthetic ammonia can be used to produce chemical fertilizers, including nitrogen fertilizers, phosphate fertilizers, ammonium phosphate, etc. my country is a major agricultural country, and the demand for chemical fertilizers is growing. According to data from the National Bureau of Statistics, my country’s agricultural nitrogen, phosphorus, and potash fertilizer output in 2021 will be 55.436 million tons, a year-on-year increase of 0.9%. Benefiting from the rapid development of the chemical fertilizer industry, the demand for synthetic ammonia has maintained a steady and positive development trend. In 2021, my country’s apparent demand for synthetic ammonia will reach 59.896 million tons, a year-on-year increase of 14.5%. East China has the highest demand for synthetic ammonia, accounting for 37.6%.

In terms of market competition, there are many synthetic ammonia manufacturers in my country, including Shaanxi Xinghua Chemical Co., Ltd., Zhejiang Juhua Co., Ltd., Jiangsu Huachang Chemical Co., Ltd., Hebei Cangzhou Dahua Co., Ltd., etc. Shaanxi Xinghua Chemical Co., Ltd. is a large-scale comprehensive fertilizer and chemical enterprise in my country. Its business scope includes synthetic ammonia, nitric acid, ammonium nitrate and other products, and it occupies a leading position in my country’s synthetic ammonia market.

Industry analysts said that benefiting from the rapid development of my country’s agriculture, synthetic ammonia, as an important raw material for chemical fertilizers, has seen increasingly strong market demand. In recent years, my country’s synthetic ammonia production has continued to increase, and driven by leading enterprises, the situation of import substitution has gradually begun. Driven by positive factors such as national policy support, sufficient supply of raw materials, and strong application demand, my country’s synthetic ammonia industry will have broad development prospects.