Article: Overcapacity caused urea firms pain.(M & A, Business & Trade)

In the global economic crisis, China's urea market remained slack in the first half of this year, in line with the end of 2008. Prices increasing in February-March have long brought a temporary happiness to domestic urea makers. But the government released its urea stock at the end of March, pulling the price back to the downturned levels in the second quarter.

Many urea makers reported a slack demand in HI, which, however, did not stop the capacity expansion. China produced 31.64 million tons of urea in HI, increasing 8.9% year over year. The estimated demand is up to 46 million tons for the whole year, considering the fact that the farmers are not buying ...

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