China’s urea supply is not going well. Taiwan Fertilizer does not rule out imports from Southeast Asia and the Middle East (picture taken from Weibo)
[Central News Agency]China has recently strengthened its control over urea exports, which has led to a tight supply of urea and a sharp increase in prices. South Korea has decided to import from Australia in an emergency. Taiwan Fertilizer Corporation said today that it does not rule out imports from countries in the Middle East or Southeast Asia that produce urea.
In a telephone interview with a reporter from the Central News Agency, the director of Taiwan Fertilizer explained that although Taiwan Fertilizer invests in the Jubail plant in Saudi Arabia with an annual output of 600,000 tons of urea, the freight is high. Suppose it is about US$50 per ton to ship from the Middle East to Thailand. If it is shipped to Taiwan, it may cost US$60. Therefore, the local production of urea has not been shipped to Taiwan, and the Taiwan factory no longer produces urea. Domestic urea fertilizers are imported from China.
According to industry analysts, the price of urea was only US$200 per ton last year. It has been rising this year. Since October 20 this year, the price has risen to US$700 to US$800 per ton. It rose to US$730 to US$800 on October 28, and it has arrived on November 4. US$740 to US$830.
The industry speculates that China’s implementation of “dual energy consumption control” affects the use of coal mines, and the coal chemical process that was originally promoted, the chemical raw materials produced also include urea, which may result in a reduction in urea production or restrictions on production, resulting in normal exports.
As the price of urea fluctuates, the contribution of Taiwan Fertilizer’s Jubail plant to the parent company’s profit has also changed greatly. According to the annual report of Taiwan Fertilizer, there was a record of contributing about NT$3.8 billion in after-tax net profit many years ago, but last year it was only a few hundred million yuan.
The industry said that the production of urea requires a liquid ammonia plant to use natural gas as a raw material and add nitrogen to make liquid ammonia. The urea plant further adds carbon dioxide to the liquid ammonia to make it into urea.
The industry added that urea is divided into agricultural uses with “anti-caking agents” and industrial uses and automotive uses without addition. Urea for agricultural fertilizers is the nitrogen fertilizer among the three elements of agricultural fertilizers nitrogen, phosphorus, and potassium, and is mostly suitable for leafy vegetable farming.
In the industrial and automotive parts, it is generally necessary to remove nitrogen oxides before exhausting exhaust gas from diesel trucks to meet environmental protection requirements. Dissolve urea in water and spray it into the exhaust pipe to reduce it to nitrogen and then discharge the nitrogen-free oxide. Exhaust gas.
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