Drying equipment

With the urea market entering the off-season, coupled with severe overcapacity and reduced domestic demand, many people in the industry are concerned about the urea market in the second half of the year. But professionals believe that the urea industry will not be too sad in the second half of the year.

Urea production in 2012 is expected to reach 63 million tons, domestic demand is 52 million tons, of which agricultural fertilizer is 41 million tons and industrial fertilizer is 11 million tons. Considering that the first half of the year is the peak season for urea consumption, surplus production will be concentrated on the release in the second half of the year. In other words, the excess output of 11 million tons must be eliminated in the second half of the year. Otherwise, the situation of oversupply will not be fundamentally changed.

In spite of this, from the analysis of the overall situation, the impact of unfavorable factors is limited, and the good news continues one after another. In the second half of the year, the urea “money scene” is going to be good, and it is difficult to maintain profitability, and there may be situations in which demand exceeds supply and operates at a high level.

From the perspective of the international market, first of all, the global economy is weak and growth is weak, making the US dollar a safe haven and starting to appreciate gradually, which will benefit urea exports. Coupled with this year's off-season urea exports invisible tariff cuts, export policies have been loosened, urea exports may increase significantly. Secondly, the situation in the Middle East is worrying. Syria continues to be turbulent. The new sanctions imposed by the United States on Iran have started. Affected by this, Iran’s urea exports will be significantly reduced in the second half of the year and it may even be withdrawn from the international market. If the situation further deteriorates, urea exports from Russia and Ukraine will also be implicated, making it extremely easy for the international urea market to be in short supply. Finally, due to typhoon and seasonal influence, the markets in Southeast Asia and South America have not yet been fully opened. There is still a large amount of demand space. In particular, after the appreciation of the US dollar and the loosening of export policies, the export market is promising.

Looking back at the domestic market, the economic growth rate slowed down, and the price of coal, electricity, and oil transportation fell across the board. In particular, the raw coal that accounts for 70% of the manufacturing cost was affected by the large increase in imported coal, and there is still a possibility of further decline. It is also possible to further reduce the cost of making urea plants. In addition, this year, there is a large amount of rainwater throughout the country, which has brought certain impact on agriculture. In order to ensure stable grain production, whether it is to resume production after the disaster or autumn sowing, there is a demand for urea, and it may also be higher than in previous years. Moreover, with the in-depth development of macro-control, the state's support for agriculture has been further strengthened. As the main product of agricultural output increase, urea is very likely to benefit from the new round of regulation and control.

All in all, there is a rigid demand in the urea market, and in the context of a reduction in the supply of international markets, a reduction in domestic tariffs, and a drop in costs, the days of the industry in the second half of the year should not be too difficult. However, in the long run, the situation of oversupply has not been fundamentally changed, and the urea industry has entered a period of high platform turbulence. Once the peak season is over, the situation in the Middle East will tend to be gentler. Contradiction between supply and demand is likely to be prominent, and it is recommended that manufacturers ready.

Aluminum Stamping Profile

Aluminum Stamping Profile is a kind of Aluminum Profile.It can be used in stamping application.Trumony can provide the stamping profile as per clients drawing.With our new tooling facility,the development is fast and cost is controllable.With a fruitful communication between each other we can develop the products easy for clients usage.With the rapid development of China's large-scale infrastructure investment and industrialization process, the output and consumption of aluminum profiles in the whole industry has increased rapidly, and China has become the largest aluminum profile production base and consumption market in the world. After nearly 10 years of rapid growth, China's aluminum profile industry has entered a new stage of development, and has shown many new development trends.

Cnc Aluminium Profile,Aluminium Profile Price,Aluminium Frame Profile,Industrial Aluminum Profile

Trumony Aluminum Limited , https://www.szaluminumpipe.com