my country’s urea production capacity is overcapacity and industry development faces challenges

Urea, also known as urea and carbonamide, has the chemical formula CH₄N₂O or CO(NH₂)₂. It is an organic compound composed of oxygen, hydrogen, carbon and nitrogen. Urea is weakly alkaline, soluble in water and alcohol, but insoluble in ether and chloroform. Urea exists in living organisms and often uses chemical substances such as carbon dioxide, L-aspartic acid, water and ammonia as raw materials, and is converted from aspartic acid through metabolic cycles. In industry, urea uses liquid ammonia and carbon dioxide as raw materials and can be directly synthesized under high temperature and high pressure conditions. Its appearance is white and slightly reddish solid particles, odorless and tasteless.

According to the “2022-2027 Urea Industry Market In-depth Research and Investment Prospects Forecast Analysis Report released by the Industrial Research Center, in recent years Affected by factors such as the country’s “dual control” of total energy consumption and intensity and the industry’s overcapacity reduction cycle, my country’s urea companies have suspended production and restricted production, and the industry’s operating rate has been operating at a low level, resulting in a decline in urea production. According to statistics from the China Nitrogen Fertilizer Industry Association, my country’s urea production reached 54.55 million tons in 2021, a decrease of 1.68 million tons compared with 2020 and a year-on-year decrease of 3.0%. my country is the world’s largest urea producer, and its production technology and equipment have reached advanced levels. However, the urea market is facing an oversupply situation.

Urea is mainly used in medicine, agriculture and industry. In the medical field, medical urea has the effects of increasing osmotic pressure and cooling, and can also be used to treat chapped hands and feet and chapped hands and feet caused by keratotic tinea pedis; in the agricultural field, urea is a high-concentration nitrogen fertilizer with a neutral pH value that can It is suitable for any type of soil, does not change the acidity and alkalinity of the soil, and can also promote the growth of crops. It is currently the most widely used fertilizer in my country; in the industrial field, urea can be used to prepare polymer synthetic materials and can be used to produce plastics, Urea production, used as an industrial raw material in paints and adhesives, accounts for nearly 10.0% of the world’s total production.

In terms of import and export, due to the impact of export legal inspection policies, my country’s urea export volume has declined. However, under the influence of rising international prices, the amount of urea exports still shows an upward trend. In 2021, the General Administration of Customs will implement new export commodity inspections on 29 types of fertilizer products such as urea, which will restrict the export volume of urea. According to statistics from the General Administration of Customs of China, my country’s urea export volume will reach 5.295 million tons in 2021, a year-on-year decrease of 2.9%. my country’s urea export value will reach US$2.145 billion in 2021, a year-on-year increase of 51.1%.

Industry analysts said that currently, the demand for urea is strong in the industrial and agricultural fields. With the support of advanced production technology and equipment, the application of urea The field will continue to expand, and there is huge potential for industry development. However, my country’s urea market is oversupplied and the difficulty in digesting excess production capacity remains a major challenge for industry development. With the further implementation of national environmental protection policies, low-end production capacity enterprises will be eliminated, the concentration of the urea industry is expected to increase, and the oversupply situation will be effectively alleviated.