Urea favorable market superposition

May urea market driven by multiple positive factors, out of the market reversal. General manager of Shandong Union Chemical Group sales company Sunde Liang said urea market after a long slump, the recent signs of recovery, mainly due to the support of multiple positive: First, the recent market launch of Jiangsu and Anhui. By summer rice and corn fertilizer fertilizer boost demand, the recent price of urea in Jiangsu, Anhui market is climbing, because farmers need a time when the peak season, the mainstream factory price last week strong rise 20-30 yuan / ton, up to now has been in Anhui rose to about 1,700 yuan, Jiangsu Province has risen to around 1,770 yuan. Second, fertilizer demand gradually released. As the pre-urea prices continued to remain low, the volume of fertilizer companies prepare small, high summer nitrogen increases orders, fertilizer demand is gradually improving corporate procurement. Third, follow the trend of purchasing agricultural demand. Urea prices in recent years, often "busy season" and, therefore, most dealers to maintain low inventories and even zero inventory, especially after several years of losing money to operate, mostly dealers to maintain a cautious wait and see attitude, so leading to a serious shortage of supply channel inventory in the fertilizer season, even the industry has excess capacity, prices have still been rising. Fourth, good pull India tender. Although this year's Indian tendering situation is not very good, but in collaboration with domestic manufacturers, the Indian side did not get a low-cost supply, a new round of bidding data show that India, eventually India in less than $ 300 / ton CIF The sources identified the 735,000 tons of urea purchases, although only half of the planned purchases, but volume control India 330,000 tons of urea tender April 10 reached the view, already has improved significantly, and $ 300 / ton to shore t price of $ 265-270 a previous bid to shore up t price compared to the $ 30, this is the result of both games, although not explain China's urea export achieved winning results , but overall, the trend is for the better.

Domestic prices rose significantly

Affected by multiple positive, the domestic urea prices also rose significantly. Whether or Henan, Shandong, Hebei and other places, the current urea prices are maintained at 1640-1650 yuan / ton in some areas even supply shortage. Sunde Liang said: "In the current market rose significantly urea is actually to be expected, although the large companies operating rate generally remain high, but the primary market due to lower inventory levels, so finished pre-orders, the majority of enterprises according to actual situation slightly raise its offer. "

Henan Yan Jin Kai Group of Chemical Co., Ltd., Assistant General Manager Yang Yu also said that with the recent significant rise in the domestic price of urea is indeed stimulating demand. "While significant rebound in international prices, but domestic enterprises still mainly domestic market, set in Hong Kong from the current price, 1650 yuan / ton price set in Hong Kong and the domestic price is still a certain gap, so companies would rather ensure that domestic market demand, not eager to set in Hong Kong. "

Internationally, the week, the international urea prices extended early gains, most countries of $ 5-10 / ton increases. Small particles of urea aspect, the Black Sea, the Baltic Sea offshore guide prices go to $ 3-9 / ton to $ 272-283 / ton, up $ 8-13 China Offshore guide / ton to 288-293 US dollars / ton; granular urea , China Offshore guide prices go to $ 6-15 / ton to 293-308 US dollars / ton.

Rising international price of urea can be said to be affected by domestic enterprises and India game results, the results of this round of bidding, although urea game still continues, but the price is still a major factor, if the price is reasonable, will lead the domestic market to rise further, Even the price did not meet expectations, it can digest the port inventory for the next round of bidding to provide a positive support.

Outlook still rise

Sunde Liang believes that before July, the price of urea will remain steady rising trend. "Although the price of urea rose significantly, but not all companies can profit, in fact, the current price of urea prices can not be used to describe, it can only be said to be rational return, after several years running low, the current social inventory remains low, with the gradual improvement in the international market in urea exports, after a run-in various enterprises, is also becoming rational, ideology is also more unified, to avoid vicious competition, and promote the healthy development of the market, so in The next period of time, the price of urea is expected to maintain the rebound. "

Yang Yu also believes the same, in 6--7 months, urea prices should remain at 1,700 yuan / ton reasonable price. "From the current market research point of view, whether they are dealers or manufacturers, inventories are relatively low, and the demand for greater summer corn fertilizer, which determines the demand in 5--7 months, urea prices will continue to rebound. "Yang with Yu stressed that although the current export is not smooth, but this is mainly due to lower quotations India from this year several tenders, the current domestic urea is not passive, as the international urea prices fall, India's bid price will increase, and only in line with the psychological level of enterprises, export turnover will be smooth, which will drive domestic prices continued to rebound.