Pain point one: urea prices below the cost, manufacturers are difficult to cut operating rates. In most parts of the summer market has started, actual situation of preparation is agricultural fertilizer volume is still large, the price of urea is dropping lower and lower, in Shandong Province, Shandong urea mainstream factory price from the end of April 1340 yuan / ton gradually decline to late June of 1240-1250 yuan / tons, Shandong rivers a factory only $1160-1210 / tons, Xinjiang, Inner Mongolia distance a factory already below 1000 yuan / ton, the peak season does not Wang reflected the "maxed"! How a "miserable" word! According to incomplete statistics, China chemical network, Shandong most urea manufacturers to produce cost about $1050-1200 / tons, full cost at least high 150-200 yuan / ton, Shandong individual small factories, Xinjiang individual gas head small plant, Hunan a company is this time prices below cost are at the expense of manufacturers in, although have the opportunity to once again started, but unless it can quickly eliminate backward production capacity. Otherwise, it seems difficult to appear again higher than the cost of the ex factory price.

　　Since it has been below the cost, then why not cut down the operating rate or simply stop production in order to ease the bad situation? First, 4-5 is used in factory maintenance season, then the equipment commissioning is completed, the impact of the current maintenance brought again is not too good, and its cost is low operating rate is higher; second, there is a seasonal annual agricultural need more concentrated, if this season due to stop production and loss the old customers, loss of market share, is not conducive to the second half of season with these old customers fed operation; third, in the car that just a few net fertilizer enterprises stop production seems to be unable to bring prices, after all, the cost of Xinjiang enterprises in Inner Mongolia, Xinjiang freight rumors about to cut the supply is far greater than a few of these. The maintenance brought good news for other market impact.

　　Two pain points: compound fertilizer enterprises for urea raw material demand is low, high nitrogen fertilizer with urea fertilizer for market share. The root of the purchase of weakness in the procurement of the lowest utilization rate of the fertilizer and compound fertilizer enterprises of the summer production of intermittent, fat network statistics may approximately 70-80%, in the near future and even some well-known large enterprises are in accordance with the single production, as of June the third week, compound fertilizer enterprises operating down to only 37%, Linyi consignment to 1250 yuan / ton or even slightly low, the raw material of urea can be imagined, urea prices become sluggish is high nitrogen poor sales than last year even more the same urea enterprises compete for market, coupled with the grain price is low, the temperature is poor, crop expected return is low, the farmer is not willing to fertilizer input, the season is not busy pain here.

　　Pain point three: exports without support, dealers in the domestic demand is not the premise of the gap is more hope that the factory price of urea can be close to the export price. 1-5 this year, China's urea exports only about 4 million 331 thousand and 800 tons, compared with the same period last year 6 million 91 thousand and 900 tons reduced nearly 1 million 750 thousand tons of fertilizer, in the network the reason is that the number of cars exported to India and other places have decreased, India is two times the tender price was in the doldrums, the first time in our country to the main ports of urea manufacturers the price of about 1270 yuan / ton, second times or even only to the main ports of the price is 1220 yuan / ton (a decline of about 50 yuan / ton), were far lower than the same period of China's domestic manufacturers of the ex factory price of urea (urea respectively over the same period in Shandong mainstream factory price at around 1340 yuan / ton and 1290 yuan / ton also, a decline of about 50 yuan / ton), in addition, the price adjustment on the eve of the first tender in India on the eve of small and medium sized dealers have purchase in advance, to start the summer dressing market real occasion, dealers in the rush Under the premise of low replenishment to urea ex factory price to more export income of the ex factory price.