Urea prices a day a sample, and now the grass-roots dealers who dare to stock? In the survey of primary urea market, most dealers said some of the low price of goods purchased in 2016 of urea, chicken after Spring Festival, sales and purchase upside down is very serious and widespread, this situation continued to hit dealer purchase enthusiasm of fertilizer. In Cui seems, urea in the process of selling agricultural grassroots, has been in the following two aspects into a vicious circle.
First, due to low grain prices, and in recent years the base fertilizer market competition, primary dealers loss situation is very common, so many have given up reserves or reduction of reserves, agricultural and agricultural companies around the province led to poor sales, so the urea enterprises procurement is slow, since the Spring Festival, including Shandong, Mesopotamia Shanxi, Anhui and other provinces are not a lot of basic agricultural companies buy urea or ready to buy in large quantities, with multi pin with inlet, and as of now, also are performing in such a way that all affect the flow rate of urea, urea enterprises sluggish sales, and some enterprises in the long-term high inventory pressure under the market also improved after the first consumption of inventory and then consider whether the price rebound. To focus on agriculture fertilizer as local area is prone to fat tensions, but due to the overall agricultural need to reduce, this situation is also relatively short, not to bring good sales of urea, it has ended, and the urea market downturn continues to make primary dealers so bearish urea market circulation, completely. It is very difficult to support the improvement of urea market.
Two, from time to time urea enterprises facing cost pressures, in waiting for good and create a slightly higher price; while crop prices are low, the grass-roots farmers enthusiasm is low, much lower prices in waiting for the procurement of urea, as part of dealers in Heilongjiang said that this year to the downstream customers brand and quality basic requirements, as long as the price is cheap you can, this situation has led to dealers on the dilemma. One is the purchase channels, two sales channels, are indispensable, for the interests of two parties, dealers have to end concessions, is the base of urea market competition, price drop is serious, part of the goods have no interest at all, or even a loss. We then discuss, farmers to grow crops do not make money, the dealer from time to time loss, urea enterprises often face cost pressures, it can be said that the interests of the three aspects are poor, that is to use urea in the production process, the basic will lose the basic profit, the same industry is worth pondering the vicious spiral.
In the above two basic market into a vicious spiral of urea used, can be said to dealers in the distribution of urea on the road has gone farther, but in the field to do for so long, have feelings, and fixed market, made a lot of friends, who can not say do not do. To understand the pre market survey, the majority of dealers have decided to start no longer needs credit, and has recently discovered, for protection of fixed market and farmers in poor financial condition, credit market situation has eased but still seems serious, and Heilongjiang don't give up a dealer said that credit after sales than in previous years to reduced 70-80%!
Grassroots urea dealers heart tired, for upstream and downstream Gan link, but it is difficult to protect their own interests, and may for the next long period of time or difficult to improve. But as a large agricultural country, although the preferential policies of urea has been canceled, but the intensity of government subsidies on crops should continue to increase; urea enterprises through this several years of losses, part of the production capacity will be gradually eliminated, the long term, primary dealers for urea should still have the operational space, so the first we can see through this round of test.