At present, the "soft hardware" has been relatively mature for the introduction of urea futures by Zheng merchants. After the listing of the species, with the existing three dishes, wheat, cotton, rice and other agricultural products futures. Complete data of agricultural production and agricultural product variety series, will be helpful to the agricultural production and operation service companies use futures tools. At the same time, as the energy and chemical industry products, after the listing of urea and methanol and other varieties of the formation of more arbitrage trading opportunities, which is conducive to investors to improve the efficiency of the use of funds, and in the current methanol futures trading is very active in the background, is expected to be listed on the prospects of urea futures will be very good.

Dream of a urea spot operator

"I am very much looking forward to the urea futures market, not only to provide a large number of urea related enterprises to provide a trading platform, financing platform, information exchange platform, more important is to provide a platform for the market to provide a resource allocation, price guidance platform." For many years has been engaged in urea spot and e-commerce business Li Baien told the futures Daily reporter, urea spot market is particularly good, while a lot of companies involved in the futures market to understand, some companies in the production of urea and other chemical products, and has been involved in the transaction of methanol and other futures, in particular, want urea futures trading.

As of 2014, China's total urea production of 166 enterprises, the total production capacity of about 80 million 700 thousand tons. Urea as an important agricultural production data, the main producing areas are concentrated in the agricultural areas, such as the total capacity of the East, North and central China is 51 million 680 thousand tons, accounting for 64% of the total capacity of the country. Domestic urea main downstream demand is divided into agricultural demand and industrial demand, the total annual consumption in 60 million tons or so. Among them, the consumption of agricultural areas in the 45 million tons, accounting for about 75% of total urea consumption, agricultural demand is divided into direct application and production of compound fertilizer. Industrial consumption is about 15 million tons, industrial demand is mainly divided into man-made board, melamine, flue gas denitrification and other small industrial demand, etc.. Current central China, East China, Shandong and its surrounding area is the most concentrated urea demand in China, Shandong, Henan, Jiangsu, Hubei, Anhui and Hebei urea consumption accounted for more than 40% of total consumption.

In Li Baien opinion, urea is a relatively stable quality of industrial products, domestic annual output and demand are relatively large, the price is also more regular, very suitable for listing transactions.

It is understood that urea production enterprises are more concentrated, the demand side is stable and the range is from the agricultural sector to the industrial field, the market development space is large. From the spot market situation of urea, urea as an industrial product, has the characteristics of continuous production, in addition to the necessary maintenance, the monthly output smoothly. Because of the increase in the consumption of urea industry, the production, consumption, trade and circulation of the seasonal is gradually weakening, the relevant enterprises in the year of the year have a hedge demand. Li Baien believes that the future of urea futures market, urea production, trade, demand will be actively involved in the company, then the use of futures markets, the cost of a large number of procurement urea certainly closer to the spot market, the source of the purchase is relatively stable. He said: in this case, I set up a number of agricultural production areas with professional agricultural production services, you can meet the farmers, farms and other agricultural fertilizer needs, while the distribution station is based on the actual needs of the local market with the purpose of fertilizer, but also a lot of savings and unnecessary transportation costs, the ratio of compound fertilizer costs, and so on, I will achieve the scale of urea."

Reporters learned in the interview, the current agricultural fertilizer is from a single urea to the development of compound fertilizer, but the high cost of synthesis of compound fertilizer, conversion costs and other expenses generally in 1000 yuan / ton. Li Baien's dream is that after the listing of urea futures, the use of futures markets, which is a stable supply of goods, a large number of lower cost of urea, and then through the enterprise under the distribution of urea with a lower cost of compound fertilizer supply to farmers, and ultimately achieve the purpose of double win. According to Li Baien introduction, the cost of urea into compound fertilizer is only 50 - 100 yuan / ton.

What makes Li Baien even more confidence is that the current domestic accelerate the development of modern agriculture, land circulation continues to expand the scale of new agricultural organizations such as large and medium-sized farms such as bamboo shoots after a spring rain vibrant growth, agricultural development trend has been formed, the urea procurement field of agricultural production is no longer a decentralized procurement, is developing to the number of tons or even one hundred tons, hundreds of tons of scale, the future of agricultural production in the field of enterprises need to lock the production cost by using futures tools, and avoid the risk of fluctuations in the prices of means of production.