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Now the general trend of urea market is stable, although it will not say how good, but can maintain a more optimistic attitude, the current price has bottomed out, and there is a rising trend. First, the current inventory of urea is not in the process of falling prices, dealers, retailers or loss, or did not earn money, resulting in the current are in a wait and see attitude, social inventory is very low. Secondly, now the market price of urea has far below cost price, there are a considerable number of enterprises have begun to limited production, cut or even stop production, some enterprises took the opportunity to shut down for maintenance, in this case, the industry as a whole operating rate far below the normal operating rate, only 60% ~ 70%, lower rate means supply reduction, China is not enough. Again, the international market there are signs of a rebound in the bottom, prices have recovered from the previous $180 to $170 or even higher, so that it can drive the domestic market activity and confidence. Finally, in late August, the company's operating rate gradually increased, the weather conditions have gradually become better, industrial demand and agricultural demand will steadily increase. So, according to the current situation, the urea market has a certain rebound conditions.
In this case, the enterprise is to cut down the consumption cost reduction, second is to adjust sales strategy, increase production of other products, a reduction in urea production, like our factory began to gradually increase the production of methanol, triethylamine and melamine. For dealers, both urea and compound fertilizer, basic can intensify the reserves, but in the bottoming process, risk will be accompanied by chance, according to the amount of the actual situation of the local hunters.
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