What new plans does the nitrogen fertilizer industry have for the 13th Five-Year Plan?
During the “12th Five-Year Plan” period, the average sales profit margin of China's nitrogen fertilizer industry was only 2.38%, lower than the 4.73% average of the fertilizer industry, and in 2014 the whole industry's losses reached as high as 5.66 billion yuan.
The “13th Five-Year Plan” for the nitrogen fertilizer industry states that by 2020, total nitrogen fertilizer production capacity will be controlled at 61 million tons, capacity utilization will be raised to above 80%, and overcapacity will be basically resolved. The share of capacity using non-anthracite coal as raw material will be greatly increased: the share of synthetic ammonia capacity using non-anthracite coal will rise from the current 24% to about 40%, while synthetic ammonia capacity using atmospheric-pressure anthracite coal will fall from the current 51% to 41%. The share of synthetic ammonia capacity using natural gas as raw material will fall from the current 22% to 17%, with the remaining 2% using coke oven gas as raw material.
The use of traditional single-element urea will decrease from 40 million tons to 20 million tons, and the reduced 20 million tons will be replaced by 10 million tons of value-added urea and 10 million tons of urea ammonium nitrate solution. At the same time, 15 million tons of nitro compound fertilizer will be developed. The product structure of fertilizer production enterprises can be adjusted in these directions.