Short reserves increased fertilizer this year , the state encourages circulation and production enterprises form a consortium to jointly undertake short storage tasks. However, due to an oversupply of fertilizer products , price change uncertainty, farmers buy fertilizer ahead of a strong desire not to other factors, "reservoir" effect Dongchu increasingly weak , dealers increasingly reduced enthusiasm for winter storage .

Event:

September 6, 2013 , the National Development and Reform Commission Trade Division , Ministry of Economic Planning and Development Division launched the 2013/ 2014 season annual commercial reserves of fertilizer enterprise qualification tender exercise . The tender number is 12.95 million tons , respectively, for the 2013/ 2014 season annual commercial reserves of 12.25 million tons of fertilizer and 700,000 tons of phosphate fertilizer year 2014 special reserve . Short storage in accordance with the fertilizer , " a bid , for three years ," the principle of the 2010/ 2011 short storage 1025 tons of fertilizer this year maturity , need to re- tender. The tender number is 12.25 million tons , 10.25 million tons compared with an increase of 200 million tons. Coupled with the tender 5.05 million tons in 2011 is still in compliance , as well as 700,000 tons of phosphate fertilizer special reserves , the total for the year amounted to 18 million tons of fertilizer light storage , a record high.

Our fertilizer business light storage system established in 2004, the annual production of fertilizer products to alleviate seasonal use conflicts, protect spring production of fertilizer , the fertilizer market and price stability play an important role . Total short storage increased from the initial 8 million tons in 2008/ 16 million tons in 2009 , after four years has remained at 16 million tons of scale. This year increased from two million to 18 million tons again.

At the same time , as a major regional fertilizer Dongchu , Northeast Dongchu cases compared with previous years , the policy is not to force manufacturers to winter storage , price instability , financial pressure, and many other factors have led to an oversupply of product distribution

Manufacturers Dongchu enthusiasm is not high, Dongchu start late, reserves decline.

Comments:

Secretary for Economic Development and Reform Commission official said that this year the increase was mainly due to fertilizer pale reserves fertilizer consumption increased by more than a few years ago , fertilizer pale reserves also need to simultaneously increase ; difficult industry this year , hoping to ease the way to increase light storage fertilizer market supply and demand , and promote fertilizer market stability and healthy development.

This year 's fertilizer prices long time , greatly magnitude rarely seen in history , urea, diammonium phosphate fertilizer species declines of more than 500 yuan / ton, the lowest after 2010 , such a low price makes a lot of business at a loss state. From cost considerations , this is a relatively short storage of fertilizers good opportunity . This year the total amount of fertilizer National Reserve not fall short , short description of the state of commercial fertilizer storage persistence and a positive attitude , short increase reserves to stabilize the fertilizer market favorable . Meanwhile, the minimum grain price protection is constantly improving , and the current fertilizer prices are low, farmers will be encouraged to actively buy fertilizer and fertilizer . Fertilizer prices have been falling this year , in order to reduce risk , dealer inventory is generally small, provides an opportunity to the market .

But others took a different view. Fertilizer production capacity is growing, increasingly prominent contradiction between supply and demand , the new fertilizer production capacity has obvious cost advantages, will push down prices throughout the fertilizer market . Fertilizer production this year will be 75.7 million tons , an increase of 8.5%, while the current annual growth rate of fertilizer demand is about 3% , the growth rate of output growth is higher than the demand , there will be a lot of fertilizer production to inventory to next year , and next year fertilizer production will increase further next year fertilizer market is not optimistic. While the low international fertilizer prices , overcapacity of fertilizer , many turned to the export of fertilizer . However, due to the international fertilizer production capacity is also great, as fierce competition , international fertilizer prices are also running low . Not only did not stimulate domestic fertilizer exports fertilizer prices, and may even stimulate domestic fertilizer prices lower.