China gas production cost of urea, originally, than the cost of coal enterprises greatly a low head. This increase in gas prices, to straighten out the prices of resources of the river.

Did not result in improving national urea production costs (no direct effect on the head of coal enterprises production cost).

But, in spite of gas enterprise low prices of resources production run for many years. However, the cost of finance, management has increased year by year. Therefore, the gas prices, will bring great cost pressure for gas production enterprises. Especially in the current downturn, industry participants confidence, industry development cost subject, demand is not optimistic scenario, gas head enterprise operations more difficult.

Specific products, synthetic ammonia production using natural gas areas, especially in parts of the Northwest Sichuan, Yunnan and Guizhou manufacturers, as well as Liaoning, Henan, Hebei, will usher in the corresponding cost pressure.

The cost of all kinds of fertilizers and chemical products mainly to the natural gas to produce synthetic ammonia as raw material.

At present, the natural gas consumption in China ranging from 650-1100 cubic meters with tons of synthetic ammonia production (with the production process, gas calorific value and resource of different factors, the mainstream 900-1000 cubic meters level)

Accordingly, the gas price hikes, the ammonia consumption per ton cost impact, per tonne of ammonia production cost will be based on the original general average increase 150-250 yuan / ton. Among them, the mainstream cost increase, concentrated in the 200 yuan / tons.

The production of synthetic ammonia urea, tons of theory is converted into 1.6 tons of urea. Accordingly, the production cost of urea tons rose 95-170 yuan / ton (mainstream by 130 yuan / ton).