Since the end of spring, the domestic price of urea has a slight concussion, low operation. Practitioners have gradually adapted to this market environment, the operating rate and low stock under the premise, prudent operation. However, compound fertilizer enterprises in recent nationwide operating rate increase, in a certain sense stimulate urea market downturn, people began to put their hope in industrial urea demand.

The market for industrial driving

Since the beginning of spring, the domestic market is urea before the downturn, although the national related department to introduce access and eliminate backward production capacity of the relevant measures, but such a big production capacity continues to play "the negative effects of pile up in excess of requirement". Up to now, although Shandong urea factory gate inflation, price stability, but the mainstream transaction remains low in the 1390-1420 yuan / ton; urea prices in Hebei area is still in the doldrums, although the lower orders increased slightly, but the price has continued in 1400 yuan / tons, and no obvious market pull.

Every year to enter the 5-6, part of the production enterprises will be down, but the downturn in the market today, and the operating rate of enterprises did not decrease. According to the general manager of Shandong Union Chemical Group Limited sales company Sun Deliang introduced: Although the market downturn, but the downstream market still have certain requirements, so still have to maintain the continuity of production. At present, the harvest wheat in North China area is ongoing, corn fertilizer will have strong demand. Compound fertilizer production enterprises in Shandong operating rate improved obviously, urea orders increased slightly, so to some extent, the market. But in front of a large capacity and low coal prices, the price of urea are very difficult to have the obvious rise, near stage will maintain a slight concussion, will still hovering between 1400 - 1450 yuan / ton.

Compared with the North China area, performance price of urea southwest near stage. Chongqing prices remain at 1450 yuan to 1520 yuan / ton interval, Sichuan area is maintained at 1520 ~ 1550 yuan / ton interval. According to the state power of Sichuan agricultural chain market analysts, this element fertilizer prices relatively low, people used to the application of fertilizer used some changes this year, some farmers began to buy single fertilizer instead of compound fertilizer, from the price is cheaper, so this is one of the prime reasons at present prices stable. According to relevant sources, air head urea enterprises will be in Sichuan Province by a new round of natural gas prices impact, enterprises have to make full preparations, but production and head of coal enterprises, the advantages of natural gas has There is not much left., not even the head of coal enterprises profit margins, so the urea enterprises in Sichuan the operating rate is not high, prices will remain stable.

Urea prices weak

Compared with the downstream market, the upper reaches of the unfavorable factors of urea in natural gas prices, one of the factors that coal prices slump is not significantly higher urea. At present, the coal market from seller to buyer's market, the competition is very fierce. Local coal enterprises also began to get out of the office, to "run the market" efforts, returned to port operation. As the battle for market share, large-scale coal enterprises begin to implement preferential policies, in premium volume. But this strategy, and the oversupply exacerbated. Jiangsu Xuzhou port group said, the current coal market weakness has been back in 1996 - 2000 levels. The port of Xuzhou as a storage yard, Yanzhou Mining Group, Jincheng coal, coal group, Huaibei mining, Xu Kuang coal company coal since early March increased gradually in Hong Kong, Jincheng coal coal nearly 500000 tons, Yanzhou coal industry has more than 100000, Yangquan coal after disappeared in 10 years and re appeared in Xuzhou harbor. So, when the industry review urea prices over the past 10 years, but human, electricity costs have been present rose sharply, but the price has dropped to the level of 2007, but according to the current prices, enterprises still have a certain profit, large amplitude fall because of the coal price.

The analysis of the current market, in addition to agricultural urea, one of the important ways to port shipment is digestion yield, port workers and peasants with urea to each half. Theoretically speaking, the recent North maize with compound fertilizer will stimulate urea in a certain degree of sales, but the actual situation is no better. The first is the year urea prices continue to slump, enterprises and downstream market basically uses is to buy used strategy, so the enthusiasm of the procurement is not large; second is the compound fertilizer production enterprises most and pre inventory, at present can not find the focus point to take the goods to stimulate the market prices rebound; again is the enormous pressure of overcapacity in the domestic market have no fertilizer concentration period. In the spring of 2014 as an example, the three stock market, short storage inventory and production enterprises and supply under the state of the market, not warm not fire will be in the next few years showed a normal existence, so the demand on the pull lead to price increases opportunities will be very difficult to meet.