In mid-June, with the busy season, corn fertilizer sales coming to an end, the focus turned to wheat fertilizer manufacturers. Recently a few manufacturers adjust our offer, in addition to the cost pressures, but also to take advantage of favorable market for the sale of wheat fertilizer ready.
Fertilizer demand is at the off-season, mainly from the favorable market fertilizer prices. Last week the domestic urea continued steady upward trend. According to statistics, the average price of the factory has more than 1750 yuan (t price, the same below). Before the end of June, industrial and agricultural demand for urea will continue to increase, one agricultural fertilizer demand, and second, fertilizer production of raw materials procurement. In addition, there are opportunities for international procurement. Judge, opportunity urea prices are still up-regulated. Ammonium chloride as a chlorine-based compound fertilizer main raw material, but also ushered in a good opportunity. Currently wet ammonium factory price more than 500 yuan, the price of dry ammonium also close to 600 million, representing 50% of all early gains. If the second half of the environmental pressure diminished, and exports continued rising trend in June chloride balance between supply and demand will remain tight, prices will continue to firm.
Compared to fertilizer raw materials, phosphate and potash relatively flat performance. Currently 55% ammonium powder factory price of 2050 to 2100 yuan. In the short term, fertilizer manufacturers of raw materials purchase orders will support the market to hold above ammonium. After wheat fertilizer production start, a small fertilizer manufacturers will increase ammonium procurement, will be expected to continue in the second half orders. Over the same period, potash oversupply has not improved, at present 62% of Russian potassium mainstream offer yuan in 2100, unchanged from last week. Recent potash demand is just off-season, the price is not optimistic. However, the July fall fertilizer production and demand for raw materials will support tobacco tenders especially potassium potash market.
Compare to last year raw material prices, urea, potassium chloride and ammonium gains are more than 150 yuan. Currently chloride-year high 80, low potassium prices up 400 yuan, according to the current 45% of the content of chlorine-based compound fertilizer factory price of the mainstream judge from 1800 to 1850 yuan, autumn chlorine-based compound fertilizer is expected to continue to rise.
On the whole, fertilizer costs fall to the good support, this is the recent price some manufacturers take the lead source of confidence. Round of price adjustment is large, low-end 40 to 50, the high-end 100 ~ 150 yuan. The reason why no large-scale spread of prices, the most direct reason is that market into the off-season, most manufacturers have a certain profit margin in the case are still waiting to see. The deeper reason is that most manufacturers are trying to get rid of price competition mode. Traditional products is not the main source of corporate profits, on the contrary, the manufacturers hope that through product innovation, model innovation, reap greater profit margins.