China National Petroleum Corporation recently held a sales meeting for fertilizer sales in Urumqi, Xinjiang. The meeting proposed to improve overall economic efficiency and comprehensive competitiveness of chemical fertilizers as the goal, optimize the allocation of resources, strengthen intensive management, implement specialized management, and comprehensively increase the level of chemical fertilizer operations.
It is reported that PetroChina has 8 sets of large chemical fertilizer production facilities, with an annual production capacity of about 4.2 million tons, accounting for 8% of the country's total production capacity. In recent years, CNPC has stepped up its efforts in market development and has carried out business integration of chemical sales in the northeast and northwest regions, which has enhanced its competitiveness. Last year, China Petroleum sold 3.8 million tons of fertilizer, which accounted for about 8% of national sales.
The meeting analyzed the changes in the international and domestic fertilizer market in the future. In 2006, the preliminary total national urea production capacity reached 51 million tons, a year-on-year increase of 12.6%. In 2007, more than 3 million tons of new production capacity will be put into operation one after another, and the total domestic urea demand is expected to be 42 million tons. With the continuous increase of production capacity and foreign investment in the field of fertilizer production and circulation in China, the competition in the fertilizer market will become even fiercer.
In response to the new characteristics of resource surplus in fertilizer market, slowing demand growth, the arrival of light storage period and the changes in farmers' planting structure this year and next year, the meeting proposed to further improve and promote the construction of marketing network, striving to establish long-term stability and mutual benefit with customers. The strategic partnership has comprehensively enhanced its ability to resist market risks.
It is reported that PetroChina has 8 sets of large chemical fertilizer production facilities, with an annual production capacity of about 4.2 million tons, accounting for 8% of the country's total production capacity. In recent years, CNPC has stepped up its efforts in market development and has carried out business integration of chemical sales in the northeast and northwest regions, which has enhanced its competitiveness. Last year, China Petroleum sold 3.8 million tons of fertilizer, which accounted for about 8% of national sales.
The meeting analyzed the changes in the international and domestic fertilizer market in the future. In 2006, the preliminary total national urea production capacity reached 51 million tons, a year-on-year increase of 12.6%. In 2007, more than 3 million tons of new production capacity will be put into operation one after another, and the total domestic urea demand is expected to be 42 million tons. With the continuous increase of production capacity and foreign investment in the field of fertilizer production and circulation in China, the competition in the fertilizer market will become even fiercer.
In response to the new characteristics of resource surplus in fertilizer market, slowing demand growth, the arrival of light storage period and the changes in farmers' planting structure this year and next year, the meeting proposed to further improve and promote the construction of marketing network, striving to establish long-term stability and mutual benefit with customers. The strategic partnership has comprehensively enhanced its ability to resist market risks.