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The rational response plowing new situation in the urea market
Source:China Fertilizer   Author: Yang Lu Yi   Time:2013-03-13   Read:834second  

With the dealer a few weeks since urea prices expected continuous dashed downstream market extraordinarily impatient. Many businesses began selling pre-inventory, especially in Shandong, Hebei, Henan market. The reason lies in seeing plowing into the use of fertilizer, the terminal needs always tepid, compared with the same period in previous years, the market has lagged far behind. Meanwhile, between of urea enterprises and dealers, there have been contradictory. Preliminary Most dealers take the factory for library operation mode, trying to reduce intermediate transport links and reduce operating costs. Contractors who would like to the urea prices still remain a "virtual" sound, dealers still do not have suitable opportunities to pick up. But manufacturers, after all, according to the market situation, the price adjustment promotions, which have not been put away inventory to become a "stumbling block". Once the enterprise down the ex-factory price, inevitably, dealers will not find after the loss. At this point they formed a "reminder factory supplier delivery providers anxious pin inventory, the terminal is not alarmed" plowing new situation in the urea market.

The vendors impatient promote lower prices

Previously, I have also the northern most dealers "mode of operation in order to plant Library did comment. It is not difficult to see that the dealers lack of confidence in the market outlook, did not even dare to undertake secondary shipping charges. Perhaps this is a new mode of operation, but over time, the role of a dealer, what is it? With the approaching of spring plowing, manufacturers seem to no longer willing to help dealers bear the costs, in addition to urging its delivery more price promotions intended. In order to allow the dealer to pick up as soon as possible, the factory also increase the warehousing interest. As a dealer, originally the lack of confidence in the market outlook, plus enterprise urging delivery, can be described as anxious, dilemma. As the saying goes: Eat Hot Tofu. Eager to sell the premise, how can take into account the price that Hebei and so the market upside down. You know, the annual spring urea market seemingly innocuous, but in fact the market did not copy at all. Dealers operation influencing factors detailed analysis to make reasonable adjustments.

Agricultural market slow-paced start

In recent years, every spring, the industry complained that the terminal market "do not take". Simply say is that farmers are not anxious to purchase urea. Relying on the convenient transportation conditions, even with the use will not delay the plowing, and is likely to get compared to cheaper urea fertilizer prepared in advance with the buy. This is true, not short off-market convention. Once escaped the centralized procurement Dongchu period, the price of urea will often callback during use fertilizer, which makes a lot of small and medium-sized agricultural dealers short storage in advance tasted the bitter pill. Thus, the spring of this year there will be a significant slowdown in rhythm. Mainly reflected in: the farmers to defer purchases, especially small and medium-sized dealers stores of urea to maintain a long wait-and-see. Although the province farmers as well as large companies prepare fertilizer, but the postganglionic sales point of view, the situation is not optimistic. However, in the case of the delayed start to see into the agricultural market, the dealer this should not be overly alarmed, after all, plowing rigid demand has not yet passed. Operation Quotes avoid indecision, or interference by many factors. Now expect the spring market "with on-demand", why panic selling so beneficial to others.

To sum up, the 2013 urea plowing new situation is nothing more than the terminal farmers as well as small and medium-sized dealers further postpone purchases in order to avoid the risk of the spring planting season. However, the large agricultural companies prepare urea enterprises, the provincial agricultural fertilizer too early and too much in the face of warehousing interest as well as the urgency of the stock market, can only choose to sell part the postganglionic orders price is also less than the cost. I believe that: the large reserves urea certainly has some risk, but the current situation is not to the point of distress sale. Market support from agricultural markets postpone the start just to be on the one hand, there is the possibility of high nitrogen fertilizer procurement of raw materials with urea set in Hong Kong overlap Quotes late. In addition, in order to adapt to the current international economic system, China in the first half will be appropriate to enlarge inflation, in order to deal with the import and export trade. Urea in terms of nature is more good than harm. Therefore, I am still optimistic about the long-term trend of the domestic urea.

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