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The current domestic urea prices have fallen to the lowest point in the past 10 years. This year, the lowest in October of 1300 yuan, and "1300 yuan is the price the bottom" has become the consensus of the majority of people in the industry, at least before next year's spring, the market is unlikely to fall to the price. But in the long run, the ultimate bottom may not come, the next 3~5 years, with the release of new capacity, urea prices may be another step.
Urea prices in the first half of this year maintained at a relatively high level, since the September sharply down and up to 10 months early a year low, individual enterprises in Shanxi area ex factory price fell to 1300 yuan (ton price, the same below) about, dropped to last year's price lows near, then the market appears rebound of 30 to 60 yuan. Then the price of 1300 yuan is not the bottom of urea it? Most market participants believe that the short term, from now until next year spring this time, 1300~1350 in October of basically is the urea prices bottom, the market outlook is likely to be repeated, but again fell to the price is unlikely. However, if a longer time to see, in the next 3~5 years, due to the low cost of production in Inner Mongolia, Xinjiang and other places in the new increasing, if long-term coal prices remain low, while international demand also suck, the price of urea at the bottom may go to the next level, fell below 1300 yuan is normal.
Beijing Shanxi Coal Chemical Industry Co., Ltd., said the sale of urea, urea market prices have reached the bottom, the most important is the basis of the judgment is excess capacity. After experiencing 2008~2009 urea prices crazy rise, the rapid expansion of domestic urea capacity, the end of 2010 reached 66060000 tons, an excess of about 11000000 tons, to the end of 2014, the capacity is reached 80700000 tons, an excess of about 20000000 tons. Although the price is very low, but the current trend of enterprise production is not a large area, the pressure is greater than the demand for a short period of time is difficult to ease. Current low prices failed to ignite the dealer preparation fat passion, light distributor reserve active decrease, manufacturers will inevitably appear price ceiling single, bargain with each other causing confusion in the market, resulting in a vicious circle.
Currently the domestic urea prices have fallen to the lowest point in the past 10 years, if the price increases, the value added tax and other factors not considered by the market, the majority of coal companies are running at a loss. "In such a market environment, the company's operating pressure is very large, from last year the company's sales costs, management costs, financial costs have been increasing. But even so, the operating rate of urea is still high." The sales staff said.
Henan Jinkai company sales company assistant general manager Lu Jianzhong believes that now the macro background is not good, many dealers bearish on the market outlook, the short storage also cannot get effective operation. Intermediary companies on behalf of the "reservoir" of the role is very small, cause production goods manufacturers go difficult, to the enterprise brought a certain pressure.
"For Henan, the factory price of 1350 yuan is the bottom of the price of urea." Lu Jianzhong said.
Anhui Jin coal chemical shares of the company's sales manager Guo Qihu also believes that from the perspective of export, urea prices have reached the bottom. After this year's export tariff policy adjustment, the year has not been short season, the entire export volume in the diversion, in October last year to enter the off-season after the main export, this year's October off-season no special support for exports, the lowest price is inevitable in the year. And the urea in the international market situation is not good, in India, for on behalf of the dealer to suppress China's suspicion, the foreign trade market is lower than domestic trade, reduce the enthusiasm of domestic exports of urea.
For the afternoon, Shandong Mingshui great sales vice president Peng Jianjun more optimistic, he thinks, according to the current market conditions, the Shandong market lows in the 1350~1400, not too may lower the. Now the majority of urea manufacturers have been in a loss situation, some manufacturers take the opportunity to overhaul, conversion capacity, digestion and adverse effects. Such as long time to maintain, there will be some low output, high cost of production or production, the market supply will be reduced. As the compound fertilizer plant began to start, the beginning of the preparation of fertilizer, especially in the Northeast market for next year to deal with the use of fat, one after another production, the amount of fertilizer in the 20%~30%, late urea demand is expected to slow increase.
Hebei Jinshi company sales of urea in Jian Guo Liang also cautiously optimistic view, according to him, stone's current under gold Wantai company urea ex factory price yuan in 1400~1430, than in the previous low prices have raised tens of dollars. The late start of the weak reservoir, India tender price increases, as well as international urea prices rebound and other good, it means that the domestic urea market will not go down again. Hebei area in the future price of urea may be maintained at 1370~1500 yuan.
But Guo Qihu think, Inner Mongolia, Xinjiang and other new capacity costs are relatively low, if the long-term coal prices remain low, while international demand also suck, so the next 3~5 years, with the release of production capacity, urea prices fall further is possible.The current domestic urea prices have fallen to the lowest point in the past 10 years. This year, the lowest in October of 1300 yuan, and "1300 yuan is the price the bottom" has become the consensus of the majority of people in the industry, at least before next year's spring, the market is unlikely to fall to the price. But in the long run, the ultimate bottom may not come, the next 3~5 years, with the release of new capacity, urea prices may be another step.
Urea prices in the first half of this year maintained at a relatively high level, since the September sharply down and up to 10 months early a year low, individual enterprises in Shanxi area ex factory price fell to 1300 yuan (ton price, the same below) about, dropped to last year's price lows near, then the market appears rebound of 30 to 60 yuan. Then the price of 1300 yuan is not the bottom of urea it? Most market participants believe that the short term, from now until next year spring this time, 1300~1350 in October of basically is the urea prices bottom, the market outlook is likely to be repeated, but again fell to the price is unlikely. However, if a longer time to see, in the next 3~5 years, due to the low cost of production in Inner Mongolia, Xinjiang and other places in the new increasing, if long-term coal prices remain low, while international demand also suck, the price of urea at the bottom may go to the next level, fell below 1300 yuan is normal.
Beijing Shanxi Coal Chemical Industry Co., Ltd., said the sale of urea, urea market prices have reached the bottom, the most important is the basis of the judgment is excess capacity. After experiencing 2008~2009 urea prices crazy rise, the rapid expansion of domestic urea capacity, the end of 2010 reached 66060000 tons, an excess of about 11000000 tons, to the end of 2014, the capacity is reached 80700000 tons, an excess of about 20000000 tons. Although the price is very low, but the current trend of enterprise production is not a large area, the pressure is greater than the demand for a short period of time is difficult to ease. Current low prices failed to ignite the dealer preparation fat passion, light distributor reserve active decrease, manufacturers will inevitably appear price ceiling single, bargain with each other causing confusion in the market, resulting in a vicious circle.
Currently the domestic urea prices have fallen to the lowest point in the past 10 years, if the price increases, the value added tax and other factors not considered by the market, the majority of coal companies are running at a loss. "In such a market environment, the company's operating pressure is very large, from last year the company's sales costs, management costs, financial costs have been increasing. But even so, the operating rate of urea is still high." The sales staff said.
Henan Jinkai company sales company assistant general manager Lu Jianzhong believes that now the macro background is not good, many dealers bearish on the market outlook, the short storage also cannot get effective operation. Intermediary companies on behalf of the "reservoir" of the role is very small, cause production goods manufacturers go difficult, to the enterprise brought a certain pressure.
"For Henan, the factory price of 1350 yuan is the bottom of the price of urea." Lu Jianzhong said.
Anhui Jin coal chemical shares of the company's sales manager Guo Qihu also believes that from the perspective of export, urea prices have reached the bottom. After this year's export tariff policy adjustment, the year has not been short season, the entire export volume in the diversion, in October last year to enter the off-season after the main export, this year's October off-season no special support for exports, the lowest price is inevitable in the year. And the urea in the international market situation is not good, in India, for on behalf of the dealer to suppress China's suspicion, the foreign trade market is lower than domestic trade, reduce the enthusiasm of domestic exports of urea.
For the afternoon, Shandong Mingshui great sales vice president Peng Jianjun more optimistic, he thinks, according to the current market conditions, the Shandong market lows in the 1350~1400, not too may lower the. Now the majority of urea manufacturers have been in a loss situation, some manufacturers take the opportunity to overhaul, conversion capacity, digestion and adverse effects. Such as long time to maintain, there will be some low output, high cost of production or production, the market supply will be reduced. As the compound fertilizer plant began to start, the beginning of the preparation of fertilizer, especially in the Northeast market for next year to deal with the use of fat, one after another production, the amount of fertilizer in the 20%~30%, late urea demand is expected to slow increase.
Hebei Jinshi company sales of urea in Jian Guo Liang also cautiously optimistic view, according to him, stone's current under gold Wantai company urea ex factory price yuan in 1400~1430, than in the previous low prices have raised tens of dollars. The late start of the weak reservoir, India tender price increases, as well as international urea prices rebound and other good, it means that the domestic urea market will not go down again. Hebei area in the future price of urea may be maintained at 1370~1500 yuan.
But Guo Qihu think, Inner Mongolia, Xinjiang and other new capacity costs are relatively low, if the long-term coal prices remain low, while international demand also suck, so the next 3~5 years, with the release of production capacity, urea prices fall further is possible.
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