Urea market in May have small fluctuations, but as of the end of the month is up more than half of the decline, the price of urea small backward stable, into the second half, changed, xianyihouyang urea market rebound, rebound in prices; and so far, in addition to the local urea market fell slightly, the overall trend is still with the steady rise; according to China fertilizer network statistics since May 14th in Hebei mainstream factory price increases urea 60-80 yuan / ton, Shandong rose 10-60 yuan / ton, Henan rose 50-80 yuan / ton, Sichuan rose 50-100 yuan / ton, in recent days in Henan area with the end part of the required agricultural fertilizer, urea the factory price fell 30-60 yuan / ton.
Support urea market rebounded significantly because of the majority of urea enterprises overhaul, time is too long. According to the statistics in May net China fertilizer urea industry operating rate is only about 51%, only about 55.63% in the current operating rate, and meet local agricultural needs are mainly small start dressing season, manufacturers are at this stage a profit especially, most of the urea manufacturers in Xinjiang operating rate is low, the export amount is limited, the surrounding area Gansu is Zhangye, Jiuquan area receiving and wholesale prices are rising, the current sales of Gansu Zhangye area Xinjiang urea wholesale price of 1500 yuan / ton, up 70-80 yuan / ton. But with most areas off the dressing quietly, distributors become rational attitude, on-demand procurement is the main means of operation and maintenance of the local urea manufacturers also plans to resume production, then the domestic market supply of urea supply must be increased, two kinds of negative factors overlay, manufacturers of urea market outlook bearish sentiment is getting stronger. The price of urea next bit cannot hold.
Enterprise operating rate is one of the important factors that dominate the price fluctuation. The two causes of low operating rate of urea enterprises are environmental protection inspection and maintenance of enterprises' own equipment. In recent years, with the weakening of the role of these two aspects, the operating rate of urea manufacturers showed a trend of pick-up, the market gradually weakened. According to some of the manufacturers said in urea prices for some time, many manufacturers are profitable, regardless of which enterprises hope can start, less investment, more profit, so the production and output of urea manufacturers must be in mustering the effort to resume production, can look forward to seize the price of urea tail, so the next the supply of the supply market will increase to a certain extent, but will not rule out some temporary status during this period, the enterprise started the recovery progress is unknown, the degree of impact on urea price trend also need to dialectical view.
The gradual decline in demand is another culprit in the price of urea. Let's not say that China's urea is losing steadily in the international market. Just look at the domestic market, recently from the primary dealers learned from the previous operation means have risen to more than the procurement procurement, although the profit decreased than before, but also avoid the risk. At the beginning of June in most areas into rice, corn fertilizer, fertilizer time is generally within 8-15 days; in addition due to enter the off-season, composite mast factory operating rate fell to about 45% of sales, inventory can guarantee dealers last single, especially in the northeast and southwest most compound fertilizer plant in response to light season market device has parking, procurement of raw materials enthusiasm weakened.
Overall, the positive factors of urea market will be depleted, negative factors gradually surfaced, expected the first half of the urea prices remain high adjusted slightly, but there will still be local Anxiang half down the road, the possibility of large.