At the beginning of June, Shandong, and other places are only two small amounts of fertilizer in summer replenishment, the rest of the demand towards the end, a new single increment in most enterprises less, to digest inventory, capacity utilization also decreased. Now, the small compound fertilizer enterprises in Shandong have stopped, and the start-up rate of large enterprises is only about 3-4. There is very little demand in the late period, and the demand for fertilizer in summer is also in a hurry.
First of all, urea prices rebounded, high nitrogen fertilizer did not catch up with the last bus price. Since the end of April, urea prices continue to rise, mainly due to lower operating rate and local demand, Shandong, two small particles urea and other places by 1450-1460 yuan / ton rose to 1540-1600 yuan / ton, has remained relatively stable, rose 100 yuan / ton, the price of raw materials rose high corn n failed to leveraging the rise, weak prices remain stable, mainly due to the price of corn is low, local weather drought, grass planting will reduce fertilizer input, coupled with low price with fertilizer, to seize the genuine market space, so the compound fertilizer market in the first half of this year to end with a sigh.
Second, business equipment starts to keep going down. Compound fertilizer demand into the off-season, so the compound fertilizer enterprises operating rate has been reduced, the majority of enterprises in Northeast China in May has been completely stop, only a few enterprises have a small amount of nitrogen and potassium fertilizer demand, maintain a state of on-demand production; after mid June, off the corn fertilizer requirement of Central Plains area, most of the enterprises will gradually stop expected, parking time in 20-30 days. According to incomplete statistics of China chemical fertilizer network, most of the enterprises in the first half of this year, compound fertilizer sales decreased by about 20%-30% compared with previous years.
Finally, pay close attention to the raw material purchasing of compound fertilizer enterprises in the late stage. After a short rest after parking, most companies will begin to fall for fertilizer production and procurement of raw materials, but most enterprises are still wait-and-see, industry insiders predict late urea will be down, a large number of goods to the short term, while ammonium prices relatively stable, part of the enterprise began to purchase a domestic price of potassium ammonium. Erratic, official documents of Saline Lake price stumble K has not yet officially promulgated, while imports of potassium rose slightly, depending on the circumstances and procurement, but there has not been a big corporate procurement action, but some companies said the procurement of raw materials will begin in late June.