Urea
China is the biggest urea producing and consuming country. Currently, urea consumption accounts for over 60% of the total nitrogenous fertiliser consumption in the PRC. The key reason for the widespread use of urea is its high nitrogen concentration which makes it suitable for various types of crops and various types of land. Urea is widely applied in the PRC’s agricultural and industrial sectors.
Forecast on urea supply and demand in China
Under the current agricultural-focus policy, it is expected that the increase rate of China’s agriculture will remain at over 5% in the 11th Five-Year Plan period, and the demand for urea will increase by 3.6% - 4% (1.3mt – 1.5mt) per year from 2007 to 2010.
Compound Fertiliser
Henan is a huge agriculture province and most of the fertiliser enterprises in Henan province are producing urea, hence there is a shortage of compound fertiliser. The agriculture demand for fertiliser in Henan ranks the top in China.
Currently, there are more than 180 licensed enterprises producing total capacity exceeding 2 million tons per year of compound fertiliser in Henan. Based on China National Chemical Information Center (CNCIC) report, with a production capacity of 300K tons per year, we are the largest coal-based producer of compound fertiliser in Henan.
Forecast on compound fertiliser supply and demand in China
According to the CNCIC Report, the consumption rates of compound fertiliser were 22.0% in 2000 and this grew year-on-year to 27.3% in 2005. The western developed countries typically have consumption rates for compound fertilisers in excess of 80.0% to total fertiliser consumption in such countries. The consumption rates of compound fertiliser in the PRC of less than 30% between 2000 and 2005 were relatively low as compared to that of western developed countries. As such, in CNCIC’s view, there is room for significant growth of the compound fertiliser market in the PRC.
Methanol
With the development of the chemical industry worldwide, especially the rapid economic development of the PRC and Asia, the demand for methanol has increased significantly. In the PRC, the use of methanol fuel as an alternative to conventional fuel has been widely encouraged. Such a development has also contributed to the increase in demand for methanol.
Forecast on methanol supply and demand in China
It is predicted that Chinese methanol demand in 2010 and 2015 will be 12.5 milion tons and 20 million tons respectively, and consumption accounts for 30% - 40% of worldwide consumption. China will be the worldwide center of methanol market. With the recognition and acceptance of methanol fuel, gas mixed with methanol as substitute fuel will enlarge methanol market. Furthermore, its first domestic 10k-grade tester, with self-knowledge property to produce gas from methanol is being built in Jincheng and Shanxi Province. In addition, a million-grade facility to produce alkenes from methanol is being built in Shanxi.
