First look at the compound of nitrogen fertilizer, ie, high-nitrogen fertilizer, manufacturers of urea with ammonium chloride or urea with ammonium sulfate production. At present, the urea nitrogen of 46.2% factory price 2400 yuan / ton, ammonium chloride (dry) nitrogen 25.4% offer for 1250 yuan / ton, a single nitrogen content of the two nitrogen fertilizer prices were at about 51 yuan. So, the cost of synthetic nitrogen is about 1700-1750 yuan / ton, Shandong and other places offer for 1855 yuan / ton compound fertilizer enterprises content of 30% (30-0-0), obviously has a hundred and profit . Moreover, the farmers for corn fertilizer with how much some recognize the number do not recognize the content "purchasing habits. Therefore, with a 50 kg bag, I believe the farmers of 100 yuan / bag of fertilizer nitrogen will be more. Perhaps this will become a dealer has a selling point this year, high prices of urea production of synthetic nitrogen fertilizer plant procurement the main reason. In addition, due to both nitrogen, dealers stocking alternative. So, even if the business is frankly urea shortage does not mean that the late nitrogen fertilizer shortage, there will be enough synthetic nitrogen to supplement domestic market. 

In addition to the industrial demand, export demand has also been neglected. China reported last week, out of 460-480 U.S. dollars / ton FOB, and international traders are interested in purchasing. But at the moment the high domestic price of urea, accounting to July's FOB at least higher than the $ 500 cost-effective, or not as good as sold to fertilizer companies. During this period there are some businesses purchasing the high prices of urea and signed the July contract and international traders. According to my understanding, traders post-urea export policy is not determined, so also be converted to the compound of nitrogen export intend. After all, we in the 2012 tariff file, and did not find the export tax rate. This makes a lot of traders see the same opportunities as the binary fertilizer exports last year. Procurement but does not set the operating strategy, in their view and not much risk. As a result, dealers are also gradually become the main force of the procurement of urea. 

In summary, compound fertilizer enterprises and dealers have greater purchasing demand in the current market, I believe that this is the urea supply and demand tension crux of the problem. Objectively speaking, more than 2400 yuan / ton urea prices, although demand for support, but still too high. Once a change in the international market, the domestic market could not escape. Moreover, we find out a variety of far-fetched factors to make their own "believe" after urea at high prices justified. At this point the price fluctuations will cause a wider range of commotion, then, is likely to occur of the stock market prices have fallen. Therefore, post-operation need to remain cautious.