Released by the National Bureau of statistics in March 2016 industrial producer price index (PPI) data show that PPI fell 4.3%, but the chain from the fall to rise, up 0.5% over the previous month, the first increase since January 2014. PPI by lowering the turn up is significant. After more than two years of downturn, the market is slightly better. Fertilizer market is similar, urea and other fertilizer prices hit a new low for more than ten years.
National Bureau of statistics analysis, part of industry prices rebound, the petroleum and natural gas exploitation, ferrous metal ore mining, chemical raw materials and chemical products manufacturing price chain by the February decline for 3 months were up 9.9%, 3.6% and 0.9%. Fertilizer is a high energy consumption industry, its price is closely related to energy prices, while natural gas or fertilizer production is an important raw material.
Earlier this year, international oil prices fell to $26 a barrel, after the rebound to around $40. Driven by the rise in international oil prices, domestic oil prices rose nearly 10% in March. From another important energy coal prices, April prices did not fall, the main reason is this year, the coal industry capacity to great efforts. April 27th, the ring Bohai power coal price index closed at 389 yuan / ton, six consecutive Zhou Chiping, rising 4.9% compared with the beginning. From energy prices, should not be too bearish outlook of fertilizer.
In addition, the price of chemical fertilizers and agricultural prices are closely related. Chemical fertilizer prices fell sharply in the second half of last year, an important reason for the sharp decline in the prices of agricultural products. Recently due to the price of vegetables, pork and other food prices rose significantly, in February and March CPI (consumer price index) rose 2.3%, the highest since July 2014 a new high. March PPI and CPI have a positive sense of fertilizer market, but also hope that the fertilizer market pessimism can be eased.