LONDON, October 18, 2017 /PRNewswire/ --
Environmental regulations in China will expedite nitrogen plant closures,
lower operating rates and cause a tightening demand/supply
balance.
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We expect to see an increase in costs across the coal based
nitrogen producers, lowering urea exports out of China and raising the global urea price
floor.
From January 2016 through
September 2017, the Chinese central
government has implemented four rounds of environmental
inspections. 24,700 plants have been levied an aggregate fine of
$185 million and over 1,400 people
were detained for breaking the environmental protection standards.
The wide coverage and strict measures taken during the
environmental inspections has instigated broader concerns in the
fertilizer industry.
During the 2016-17 environmental inspections, some fertilizer
plants were found violating the environmental requirements and
forced to shut down, unless they implemented improvements on
environmental protection and fulfilled the requisite environmental
regulations. The majority of fertilizer plants that were penalised
by the Ministry of Environmental Protection (MEP) have been
approved to restart production after making necessary improvements
in environmental protection.
Read the full story:
http://bit.ly/Chinas-environmental-regulations
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SOURCE CRU