The price of urea will rise in the short term

"Due to the strengthening of the support of urea raw materials and the recovery of the domestic economy, the demand for fertilizers, vehicle urea, and wood-based panels has rebounded. Under the combined effect, the price of urea will rise in the short term." On May 10, in Shandong Gao Li, deputy secretary-general of the China Nitrogen Fertilizer Industry Association, pointed out at the National Concentrated Glue and Wood Coating Industry Summit Forum held in Linyi.

"The supply of natural gas signed in 2023 will drop by about 20% year-on-year, and the price will rise by 30%-35% year-on-year. It is expected that the production of gas-head urea will decrease this year, and the cost will be significantly higher than last year." Gao Li said.

The Nitrogen Fertilizer Association predicts that the new urea production capacity will be 4.92 million tons per year in 2023. Except for a urea plant with a production capacity of 500,000 tons per year, which is expected to be put into operation in May, the rest will be put into operation after the fourth quarter. Urea capacity has no substantial contribution. Gao Li also pointed out: "The summer fertilizer is approaching, and the domestic agricultural market will gradually release the demand for raw materials for fertilizer preparation and compound fertilizer companies, which will benefit the domestic urea market. It will promote the steady improvement of urea enterprises and the price will rise."

Zhang Jianhui, secretary-general of the Woodworking Adhesives and Coatings Committee of the China Forestry Products Industry Association, predicts that in 2023, China's wood-based panel production will reach or even exceed 340 million cubic meters, and the urea consumption of the wood-based panel industry will exceed 12 million tons. Pulling up urea demand.

Professor Cheng Baodong, dean of the National Forestry and Grassland Economics and Trade Research Institute of Beijing Forestry University, pointed out that under the background of the current comprehensive green and low-carbon transformation of the national economy, the wood processing industry is no longer a sunset industry, but a sunrise industry. There are many developed countries Both regard the development of the wood processing industry as an important starting point for restarting the economy. China, as the world's largest wood-based panel export trade country, will also benefit from this, thus providing strong support for ensuring the price of urea. (Yang Yi)