The full implementation of National VI emission standards will drive continued growth in market demand for automotive urea

Automobile urea, also known as automobile urea and automobile environmentally friendly urea, is a urea aqueous solution with a urea concentration of 32.5% and ultrapure water as the solvent. Urea for automobiles appears as a colorless and transparent liquid. It can be hydrolyzed to obtain carbon dioxide and ammonia. It can effectively reduce nitrogen oxides in automobile exhaust and is mainly used as automobile exhaust treatment fluid. As the concept of environmental protection continues to deepen, the development of my country’s automotive urea industry is facing new opportunities.

According to the “2022-2027 China Automotive Urea Industry Market Monitoring and Future Development Prospects Research Report released by the Industrial Research Center , the upstream of the automotive urea industry chain supplies raw materials, mainly bulk commodities, including natural gas and coal. According to data from the National Bureau of Statistics, my country’s natural gas production will reach 207.58 billion cubic meters in 2021, a year-on-year increase of 7.8%; my country’s industrial raw coal output above designated size will reach 4.07 billion tons, a year-on-year increase of 4.7%. Benefiting from the sufficient supply of raw materials, my country’s automotive urea production has shown a gradual growth trend. In 2021, my country’s automotive urea production will reach 2.967 million tons, a year-on-year increase of 12.6%. In terms of production costs, the comprehensive cost of producing 1.0 tons of automotive urea is approximately 790.0 yuan. Low cost is the biggest advantage in the development of the automotive urea industry.

As a car exhaust cleaning product, automotive urea is irreplaceable. With the rapid economic development and the continuous improvement of national living standards, cars are favored by many consumers as a means of transportation. According to statistics from the China Association of Automobile Manufacturers, my country’s automobile sales will reach 26.275 million units in 2021, a year-on-year increase of 3.8%. Benefiting from the rapid development of downstream industries, my country’s automotive urea market continues to expand. In 2021, my country’s automotive urea market will reach approximately 10.0 billion yuan, a year-on-year increase of 56.0%.

The “Heavy-Duty Diesel Vehicle Pollutant Emission Limits and Measurement Methods (China Phase Six)” issued by the Ministry of Environmental Protection and the General Administration of Quality Supervision, Inspection and Quarantine clearly stated that starting from July 2021, my country will fully implement the National VI emission standards for heavy-duty diesel vehicles . Driven by national policies, my country’s automotive urea industry will develop in a standardized direction.

The main manufacturers of automotive urea in my country include Liaoning Rundi, Sichuan Meifeng, Longpan Technology, PetroChina, Sinopec, etc. Sichuan Meifeng and Longpan Technology are my country’s leading automotive urea companies, with the two companies accounting for approximately 30.0% of the market. Sichuan Meifeng, as the drafter of the national standard for automotive urea, occupies nearly 10.0% of the Chinese market. According to Sichuan Meifeng Enterprise’s financial report, in the first two quarters of 2022, the company achieved revenue of 2.73 billion yuan, a year-on-year increase of 53.5%, and the company’s automotive urea revenue accounted for 9.7%.

Industry analysts said that as car sales continue to increase and exhaust pollution problems become increasingly severe, the full implementation of the National VI emission standards will The development of my country’s automotive urea industry brings opportunities. As a vehicle exhaust gas cleaning product, automotive urea has gained a broad market space due to its low cost and other advantages. Driven by leading enterprises, my country’s automotive urea production level will continue to improve.