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Market Potential of AdBlue

In order to reduce the pollution caused by automobile exhaust to the atmospheric environment, China will push forward national emission standard stage four. With the gradual implementation of the national emission standards, urea, a traditional chemical product, is expected to be revitalized - the AdBlue has become the focus of the industry.

Industry insiders all agree that channel is the key to the sale of AdBlue.

If national emission standard stage four wants to be successfully promoted, one obstacle must be overcome: the construction and popularization of urea refueling stations. At present, the bus has a fixed refueling point, and it is relatively easy to build a matching urea filling station. But for a wider distribution and more dispersed truck, it is a problem to build a urea filling station. It is difficult for truck users to add AdBlue if they can't popularize construction refueling stations.

The AdBlue is not high, fine and pointed fine chemical products, the entry threshold is not too high. As a result, more companies will enter the industry in the future. However, the cost of building the sales system alone is too high, which can lead to a seemingly high profit and it turns out no profit. If the sales channels of urea production enterprises are limited, it will lead to limited market capacity and it won’t be the main product.

According to European experience, gas station outlets are the main sales channels for the fast and economical vehicle urea. Therefore, people in the industry said that the car with the advantages of gas stations will be expected to maximize the market. It is understood that Sinopec, with more than 30,000 gas stations, is optimistic about the market prospect of vehicle exhaust treatment and has entered the AdBlue industry. When the vehicle is injected with diesel fuel, it is also convenient to get the injection of AdBlue. In addition, according to people familiar with the matter, Sinopec has seven devices consisting of 300, 000 tons synthetic ammonia that have been running at a loss. Due to the high market profit of AdBlue, Sinopec plans to increase the price of urea raw materials by 500 yuan/ton, which is used to produce urea in cars, thus realizing the turnaround of the ammonia plant.

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