In the first half of the year, nitro-compound fertilizer is much more expensive than ordinary urine-based compound fertilizers, but it is much easier to sell. Manufacturers are not diminishing the heat of nitro-compound fertilizers. The news of the construction and commissioning of several nitro compound fertilizer projects announced recently is particularly eye-catching in the cold compound fertilizer market.
Xindu Chemical announced on June 19 that 600,000 tons of nitro compound fertilizer project had been put into trial operation; before that, in mid-April, Gansu Liuhua Group's annual output of 250,000 tons of nitro compound fertilizer project was formally put into operation. There are also many new investments. Xindu Chemicals disclosed on June 18 that it plans to invest 100 million yuan to build a new type of compound fertilizer project of 1 million tons/year in Shandong Plain, including 3 sets of 200,000 tons of nitro compound fertilizer production line. On June 27th, the nitro compound fertilizer project jointly invested by Zhongnong Group, Shanxi Coal and Gold Petrochemical Fertilizer Investment Group and Hebei Hengrui Investment Co., Ltd. laid the foundation for the annual production of 600,000 tons of nitro compound fertilizer.
The performance of nitro compound fertilizer market is also very eye-catching. The reporter recently interviewed dealers in Zhejiang, Guangdong, Hebei, and other places. Compared with ordinary urine-based compound fertilizers, dealers felt that nitro compound fertilizers would be better sold. Zhejiang Jinhua’s money manager told the reporter that the market conditions are not good this year, but the compound fertilizer price war is mainly concentrated in low-end products, and his agent’s nitro compound fertilizer is relatively less affected, and sales have also increased this year. Not only in the economic crop areas, the promotion of nitro-compound fertilizer in the Daejeon crop area in Hebei Province also showed an increasing trend. According to Yu Changzhi, deputy general manager of Hebei Yutai Agricultural Science and Technology Co., Ltd., the nitro-compound fertilizer is rich in nitrate nitrogen and ammonium nitrogen, which has a significant role in promoting the growth of the field crops. This year, the sales of the company's nitro compound fertilizer in the summer sown maize market achieved a contrarian increase. Although the retail price of nitro compound fertilizer is nearly double that of urea-based compound fertilizer with the same nutrient content, many farmers are still willing to purchase it. According to the data held by the company, the current market share of nitro compound fertilizer in Minnan has reached about 5%.
Yang Fuwang, head of the sales department at Tianji Group, believes that strong market demand is a direct driving force for the rapid development of nitro compound fertilizer in the past two years. Driven by demand, nitro compound fertilizers began to expand rapidly in the past two years. According to incomplete statistics, at the end of 2012, there were more than 20 nitro-ammonia companies with a certain scale and an annual production capacity of 6.58 million tons. There are more than 20 newly-built or proposed nitro-fertilizer companies with an additional capacity of nearly 10 million tons.
Faced with high-speed expansion of production capacity, industry sources reminded that China's nitro compound fertilizer R & D and production levels are still at a relatively low level, the expansion rate greatly exceeds the promotion rate, the local market has been the phenomenon of structural excess and counterfeit products. In order to avoid repeating the mistakes, we called for the introduction of nitro compound fertilizer industry standards as soon as possible and raise the barriers to entry in order to achieve the purpose of market purification and order regulation.