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"Two low" high force urea tons prices hit $one hundred a week afternoon will become "three highs"?
Source:China's fertilizer network   Time:2016-10-23   Read:480second  

   Domestic prices ex-factory price of urea market relay last week up 20 to 50 yuan/ton. After 11 domestic urea factory producing and the surrounding area offer cumulative gains in 80-100 yuan/ton. This paper analyzes the reasons of drive can be referred to as the "two low" high, low, low inventory, high costs. Urea enterprises chose to raise prices, cost pressures from downstream vendors due to the lack of inventory, loss of voice.

  Urea price "two low" high

  Urea and recent round of price increases, meaning a small amount of stock of evolution of centralized purchasing, factory with a pipeline orders rapidly increases. Conveniently in urea or retaliatory rallies round of one hundred yuan. This week, the mainland has always been a "price depression," said the shanxi outbound price also rose to 1200 yuan/ton; Price is the most active is the henan region, sale in domestic market, outgoing ex-factory price 1250 yuan/ton; Shandong quotation as market barometer is new price of 1260-1300 yuan/ton the market to restore confidence. At the same time, Inner Mongolia, xinjiang station on the mainland urea price also has 50-100 yuan/ton increase. Most of the urea enterprises under the condition of the steam quantity is more, choose firm offer, at the same time a certain hype.

  Prices make late market clear

  Under the restriction of environmental supervision and rising costs, limited parking companies and production rate again. Grain prices, shandong region ex-factory price 1240-1300 yuan/ton. In fact, if a change of perspective, the increase in the price of urea retaliatory also left behind potential dangers to afternoon. Before the industry concerns industry capacity utilization will rebound in the fourth quarter, after all, the north park enterprises involved in winter, the difficulty of production, but the tape down low and cost raised the threshold of factory production, expectations are not clear. But a gain of about one hundred yuan, or nearly a week domestic urea will hasten parking companies and production has no suspense. The status quo of high starting and low inventory, low cost, afternoon will be high start, high inventory, high cost of the "three highs" situation.

  Urea enterprises chose to raise prices, cost pressures from downstream vendors due to the lack of inventory, loss of voice. Intention of evolution for the centralized purchasing a small amount of stock, the factory with a pipeline orders rapidly increases. Conveniently in urea or retaliatory rallies round of one hundred yuan. Urea enterprise production no suspense, the early stage of the sharp rise in price promotion parking industry capacity utilization or improve again, the excess of supply and demand is expected to market concerns.

  Driven by the demand of international prices

  In international prices mainly by the market demand well. Last week, such as Brazil, the United States, Europe, Turkey and India market purchase activity, and is likely to continue to push up to November urea MMTC not sure the latest shipping last week. Traders struggling for October load of supply of goods in China, at a price below the FOB200 dollars/tons, another New Orleans large granule urea to FOB190 - $200 / ton.

  There are two of the most unpredictable factors, by the time of the next round of India's procurement, 2 it is to what extent the American market will rise. November shipping industry is widely expected to India again tender urea, need in the rest of this year's time to buy 1.5 million tons of cargo. But due to the high inventory of the country, to buy time really is more flexible. The United States this year and in previous years is different, because the actual market supply and the buyer has changed. Factory production is increased, but may not have predicted that much, imports is reduced. 7-12 month overseas estimates will decline in 70-70 tons from last year.

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