During the Spring Festival, affected agricultural market started in various regions, urea prices Puzhang state. Up to now, the North China area mainstream price has risen to 1640-1650 yuan / ton, compared to before the Spring Festival rose by nearly 100 yuan / ton. Henan Jin Kai Group Delay Chemical Industry Co Ltd assistant general manager Yang Tongyu told reporters: "because of the early drought weather, all have snowfall during the Spring Festival, so the agricultural market situation better start, urea prices also picked up significantly, whether in Henan or Shandong, Hebei and other regions, urea prices rose significantly, or generally reach 100 yuan / ton, can be said to be exceeded market expectations."
According to press the investigation, urea prices, Shaanxi, Sichuan, Hunan, Guangxi and other places also rose, Hunan area which mainstream price reached 1690 yuan / ton, Shaanxi area mainstream factory pricing has reached 1600 yuan / ton, Sichuan area low-end production factory price raised to 1650 yuan / ton, Guangxi wholesale prices have risen to 1800 yuan / ton or slightly high level. In addition, the northeast area prices also rose, the Jilin area factory price raised to 1650 yuan / ton, Inner Mongolia manufacturers to station price have risen to 1700 yuan / ton.
Agricultural demand is the main reason prices
In fact, since the 2014 winter storage, the market has been in a wait-and-see period, no matter large dealer or grassroots dealer Nahuo enthusiasm is not high, this will lead to the channel market shortage. It can be said that this round of urea prices although the market is expected to take the goods, but because of relatively concentrated, so prices super market expectations. Yang Tongyu said: "at the end of last year, the market confidence is relatively scarce, therefore is a wait state, during the Spring Festival, along with the rest of the market launch, each area Nahuo enthusiasm increased, part of the region and even the emergence of tight supply, so prices rose significantly."
It can be said that this round of price rise is mainly due to agricultural demand from manufacturers around, get information, at present the shipment is basic and normal, although there is still a small set in Hong Kong, but the market remains the focus in the domestic market. Yang Tongyu said: "during the Spring Festival, the international urea prices fell, domestic prices also appeared in Hong Kong fell significantly, the current set of Hong Kong price is only 1650 yuan / ton almost flat and the ex factory price plus freight, if the word, obviously lower than the domestic market price, so, even if there are export orders, each manufacturer mainly to the domestic market supply mainly."
Excessive speculation alert Market
Although the current price increases has fertilizer urea domestic demand for agriculture support, but Yang Tongyu still, prices rise too fast is not conducive to the stability of the market. "Overall, early March urea prices still have agricultural demand support, but with the support of agricultural demand intensity diminuendo, if set in Hong Kong price can not be apparent rebound, urea prices still has probably slowed."
From a survey of the situation, although the urea market overall gains, but high-end price local area has begun to fall slightly. In addition, in the small particles urea prices rose at the same time, the large granule urea prices but is still in the doldrums, the low-end Shandong area of the ex factory price of only 1670 yuan / ton, the Northeast market prices from the previous 1900 yuan / ton dropped to 1850 yuan / ton, the actual transaction price even lower.
Urea market as a whole at present still present surplus situation, although the short-term rise to increase the confidence of the market, but also to prevent excessive speculation. Yang Tongyu thinks, although at present the urea price gains, but also should be appropriate to, whether manufacturers or distributors should keep calm, the overall market stability and can't influence in order to pursue the interests of the moment. "Objectively speaking, urea industry overcapacity is still continuing, if short-term price increase is too large, the latter price decline will certainly large, and a sharp fluctuation is the manufacturers are not willing to see, not only affect the healthy development of cooperation between manufacturers, and even affect the industry."
Shortly after the price or will adjust
At present domestic spring agricultural fertilizer continues, urea prices is expected to remain relatively stable trend, but prices rose sharply after the market has a certain risk. Yang Tongyu said, in the short term, price of urea fertilizer is still useful support, but after entering the middle of March, mainly to see the international market price trend, with the international price declines, the current domestic urea exports have no advantage, if the middle of March international urea prices no color words, the possibility of domestic urea price decline is relatively large. "Although this year the implementation of the export policy relatively loose, but the domestic urea market competition is still fierce, if domestic enterprises do not unite as one, at the end of the spring market, focus on a large number of words in Hong Kong, the initiative will lose a large number of exports, domestic urea flowing into the international market will also influence the fluctuation of the international market. Therefore, whether manufacturers or traders to keep awake, although short-term present urea industry good situation, but also need to maintain the strength of the parties."