The China Nitrogen Fertilizer Industry Association has raised urgent concerns over the growing coal shortage, which is threatening the production of chemical fertilizers essential for spring farming. On March 31, reports from industry sources revealed that many nitrogen fertilizer companies are struggling with a severe coal supply crisis, leading to production cuts and soaring costs. With coal prices surging and supply dwindling, the sector is facing a "no rice pot" situation, where production in the first quarter is already under threat.
In response, the association has called on relevant authorities to take immediate action to secure coal supplies and stabilize prices, ensuring that fertilizers remain available for the critical spring planting season. A recent survey conducted by the association across five major nitrogen fertilizer-producing provinces — Shandong, Hebei, Henan, Jiangsu, and Anhui — found that out of 25 companies surveyed, only three had relatively stable coal supplies. The remaining 22 faced severe shortages, with some able to operate for just one to five days.
In Shanxi, a major coal-producing province, the situation is particularly dire. One company reported that even full trainloads of coal were not enough, with workers rushing to load as little as half a car at a time. The tight supply has led to chaotic scenes at coal terminals, with companies scrambling to secure even small amounts of fuel.
The contractual relationship between fertilizer companies and coal mines has also deteriorated, with most companies securing only 10% to 30% of their contracted coal. Meanwhile, coal prices have skyrocketed, reaching as high as 700 yuan per ton. This increase is driven by both limited supply and rising transportation costs. Railway logistics are strained, forcing companies to rely on road transport, which has become increasingly expensive due to stricter weight limits, higher diesel prices, and other operational challenges.
As a result, the average price of anthracite used by nitrogen fertilizer companies has climbed to 1,100 yuan per ton, while bituminous coal has reached 650 to 700 yuan per ton. Compared to pre-Spring Festival levels, anthracite prices have risen by 20–25%, and bituminous coal by over 50%. For many companies, urea production costs have already exceeded the national maximum factory price limit.
If the coal supply issue remains unresolved in the second quarter, it could severely disrupt spring farming activities. To address this, the China Nitrogen Fertilizer Industry Association has made three key requests: First, the government should prioritize coal supply for fertilizer production, especially anthracite from Shanxi. Second, natural gas supply should be secured to help reduce reliance on coal. Third, the maximum urea factory price should be increased urgently, with a proposed mid-price of 1,700 yuan per ton, allowing for a 15% price fluctuation. These measures are seen as crucial to maintaining agricultural output and stabilizing the market.
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