Welcome!

News Feed Item

Chinese Spare Urea Capacity of 20 Million TPY + Will Look for Export Outlets in 2014

LONDON, January 6, 2014 /PRNewswire/ --

The Government of China has set new export tariffs for fertilizer products which took effect on 1 January 2014, the country's Ministry of Finance (MOF) announced in an official statement on Monday 16 December.

Export tariffs for fertilizer products will remain different for peak and off-peak seasons as in the current structure. The new urea export tariffs in the peak season in January-June and November-December will be at 15% plus yuan (CNY) 40/tonne (US$6.60/tonne), down significantly from the current level which is at 77%. "If China's urea FOB is $350-450/t in peak seasons, China's new export tax will be only $50-66/t, sharply down from a prohibitive $150-200/t in 2013" says Oliver Hatfield, Integer's Director of Fertilizers. "This is one of many key factors we analyse in our latest Focus Report, The Chinese urea industry: addressing the global impact which will be released in February 2014" Oliver adds.

The tariff for urea during the off-peak season in July-October will be at CNY40/tonne, according to China's government statement. "Chinese urea capacity has been in serious over-supply, about 30% more than domestic apparent consumption. New investments continue to take place which means more than 20 million tpy of urea capacity will look for outlets in international markets in 2014" says Oliver Hatfield.

The volume of urea exports in 2014 and beyond will play a significant role in determining international urea and nitrogen prices. The new tariff regime will potentially make the economics for exports look more attractive, potentially adding downside. However, much still depends on plant level economics, efficiency and geography.  Integer's new Focus Report, The Chinese urea industry: addressing the global impact - currently under research by Integer's Beijing office - will seek to reveal the key issues.  

About 32 million tpy of urea capacity is energy integrated (owned by coal or gas companies), occupying about 45% of the total urea capacity. "Energy integrated urea capacity is the most competitive in international markets - and is one of the main factors we analyse in our Chinese urea industry focus report" Integer's China nitrogen market expert, Lynn Wang says.

Besides energy and raw materials, Integer's Focus Report, The Chinese urea industry: addressing the global impact also analyses a number of factors which will affect export supply, such as urea capacity geography and government policy orientation. 

For example, urea capacity geography is a very important factor when we assess who will be the most competitive export candidates. Urea capacity from Inner Mongolia and Xinjiang, which tend to have lower production cost than other provinces, will increase sharply - but these plants will mainly deliver to the domestic markets. Urea capacity in Hebei, Shandong and Shanxi provinces will tend to seek out export markets as they are much closer to sea ports.  In 2012, about 3.8 million tonnes of urea were exported by sea ports of Shandong Provinces, occupying about 55% of the total urea export. Shanxi and Hebei are also the big contributors in the export volume of sea ports of Shandong province.

The Chinese urea industry: addressing the global impact

Integer Research is delighted to announce that our Focus Report, The Chinese urea industry: addressing the global impact will be released in February 2014. It is the first study of its kind to comprehensively analyse the Chinese urea industry, providing an essential and timely analysis of the Chinese urea market.  

Click here for more information

Free Nitrogen market analysis paper

Integer Research is pleased to introduce a series of free business-focused papers covering the fertilizer markets for Nitrogen, Phosphate, Potash and Ammonium Sulphate.

Click here to request these free papers

About Integer Research

Integer Research is a specialist provider of research, data, analysis and consultancy services for the global fertilizer industry. For more information please contact:

Integer's Beijing Office

Lynn Wang on +86-10-65014599, +86-13520217871 or [email protected]

Integer's London Office

Ali Asaadi on +44-20-7503-1265 or [email protected]

SOURCE Integer Research Ltd

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
"Operations is sort of the maturation of cloud utilization and the move to the cloud," explained Steve Anderson, Product Manager for BMC’s Cloud Lifecycle Management, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.