Time to enter in December 2016, the country has long been into the use of fertilizer off-season, in accordance with the practice of dealers should have started winter storage of fertilizer. But since the end of October by the coal price rise, nitrogen, phosphorus and potassium fertilizer, the price rose to varying degrees, the off-season price quotes for dealers to temporarily take on the sidelines, so far in winter storage in some areas is still relatively slow.
According to the recent development of the national fertilizer network in some parts of the country, the research shows that the winter storage market compared with previous years, there are three major characteristics: first, the winter storage start time delay. Hebei, dealers said after the conference has started in previous years phosphate fertilizer stored in winter, but in mid November this year and the end of November is a part of the dealer purchase intention. Currently on the market, the price of compound fertilizer winter storage is still uncertain, the majority of dealers only amount of money to fight; and urea prices or larger, dealers said at a low price did not grasp the opportunity to sell at high prices even more reluctant to sell. Two is to reduce the overall amount of winter storage fertilizer. Inner Mongolia, a large dealer said, in November last year, the winter reserves of chemical fertilizers have reached more than 6000-7000 tons, but this year's reserves of only 2000-3000 tons, a decrease of about 2/3. In recent years, the majority of dealers in winter storage of fertilizer has showed a trend of decreasing year by year. Three is relatively strong wait-and-see atmosphere. At present, some large dealers have begun to moderate reserve fertilizer, but the downstream wholesalers and retailers almost no action, they both said that from next year concentrated fertilizer season start still for several months, during which the fertilizer price fluctuations will be difficult, so a temporary or wait-and-see attitude.
Analysis of the industry led to the reasons for the above reasons are mainly the following: first, in recent years, changes in fertilizer habits of farmers makes it difficult to profit in the winter storage market. The three quarter of 2016, fertilizer prices show a downward trend in the stability, some fertilizer decreases, which leads to the preparation of fertilizer dealers and farmers serious losses, in addition to chemical fertilizer enterprises sales outlets across the country as well as the mode of transportation is convenient, the farmers buy Fertilizer easier, so they is in demand to start on the eve of purchasing fertilizer dealers, "off-season storage, selling season" has been difficult to profit. Secondly, the fluctuation of the price of fertilizer affected by multiple factors, the dealer for the "Rose season, season fall" market fear. In last year's winter storage market, for example, in September 1, 2015 before the vat of fertilizer, some dealers in order to avoid the loss of the purchase of a large number of fertilizers. But the market does not work, the fertilizer prices continue downward, the supply of high No one shows any interest in very serious loss, some dealers, so the winter storage enthusiasm poor this year. Finally, the more serious the credit situation in southern area and adverse weather factors in northern area also caused some impact on the progress of this winter. In the early period of Jiangsu and Anhui, more rainfall, resulting in soil moisture is too large, rice harvest and wheat sowing have been postponed, the dealer's winter storage progress has also been affected. While credit conditions in northern China is more serious, grain prices are low, farmers are reluctant to sell, the dealer to return the funds difficult, unable to carry out the work of reserve fertilizer in winter.
Overall, this wave of price rise of the chemical fertilizer market, improve the market slump, but the winter storage progress promote no greater good show, is expected to price stability with urea and compound fertilizer of winter storage price clear, around the winter storage situation may be improving.