China XLX and Changjiang Fertilizer

China Fertilizer sector: SGX counters China XLX and Changjiang Fertilizer may benefit from spillover interest after Deutsche published its inaugural sector note today, which provides demand, supply, prices and geography data. China is the largest producer of nitrogen-based fertilizers (urea, ammonia) worldwide. China produces 2.5x more urea/ ammonia (u/a) than India, 9x more than Russia, 9x more than the USA, and is a major player on the world’s fertilizer markets. Aggregate fertilizer demand in China has grown at an average of 6.5% pa since 2003. Ytd 2013 demand growth (-14.9%) seems to be an outlier. Nitrogen demand has grown at an average 3.1% pa with potash demand at 6.2% pa. China XLX which produces urea and compound fertilizer from coal, trades at 8.6x P/E. Changjiang Fertilizer which produces nitrogenous fertilizer, liquid ammonia and methanol is loss making.