Cost is always the important factor to influence the product price on Chinese FOB price, although the domestic price is still low compared to, but compared with other countries in terms of international competition, is high, it is understood that the China urea cost is generally higher than other areas of international 15-20 dollars / ton, so also in the international due to oversupply price war time, Chinese natural disadvantage, which is mainly caused by 2017 China exports of urea significantly reduced the amount of the. To do now is domestic urea enterprises need to innovate, innovation of today's technology, reduce the cost, such as the traditional device retrofit to pulverized coal gasification device instead of a fixed bed device, thereby reducing the production cost, to achieve self rescue.
Change ideas and export new products
Change the original way of exports, not just to the general urea based, new products to find new international demand, thus competing with other parts of the international competition. China new urea developed rapidly, polypeptide, humic acid, fulvic acid, zinc controlled-release urea, crop specific production has been very mature in China, and the new price is higher than the ordinary urea urea is not only a little bit, so if we can make the export of new urea, will be able to sell at high prices, opened a new chapter in Chinese urea the export of domestic urea supply pressure relief.
Policy support to save the crisis
In recent years, although the domestic fertilizer, preferential policies to cancel, increase the cost of production, but in terms of exports, the policy side or in the continuous relaxation, from 2016 to 2017 to cancel the season export tariffs canceled, as can be seen, the government is at least in support of the product urea exports, but the current situation this is only the elimination of tariffs, the intensity is not enough, in order to enhance the international competitiveness of Chinese, countries need to continue to make efforts, such as export tax rebate, cancel the port fees etc.. As far as the previous situation is concerned, the guidance of the national macro policy tends to have less than one effect. Therefore, if the international competitiveness is restored, the support of the policy side is essential.
Overall, China domestic production capacity is huge, even if the current operating rate of 60%, there will still be oversupply situation, therefore, the theory on exports is still an important means to ease domestic overcapacity, therefore, the development of industry, the state should not give up the export of urea, otherwise, if the price is reasonable, to achieve import so, for fear of the domestic urea industry a greater impact, but also to foreigners China urea, urea China also depends on self rescue ability later.
