Urea, as a necessity of industry and agriculture, after 20 years of ups and downs, dealers follow the manufacturer after wind, mixed, stand together through storm and stress, and made a positive contribution to China's industrial and agricultural development.
With the changes in the international situation, the total amount of urea exports has dropped from ten tons to 6 million tons, less than ten years ago, 1/10. A series of exports in recent years the introduction of a series of tax incentives, did not make Chinese urea enterprises, from the complex market embarrassment in Phoenix, rebirth. With the increasing contradiction between supply and demand, the influence of environmental factors such as urea industry, a new round of reshuffle, has swept through a large number of backward production capacity, on both sides of the Changjiang River, has been a fatal blow to a new round of restructuring or diverted.
We are not difficult to see, this year, whether it is urea enterprises or dealers, in the operation of the market has been reduced by many blind operations, adding a lot of rational ingredients. First of all, the independent production capacity of urea enterprises decreased from Dingchan, changed to the. They seem to have realized that the pattern of bottom selling can only make urea worse, in the face of a contradiction between supply and demand. Once again, with the deepening of supply side reform, many urea enterprises have new ideas, increased R & D and operation of high value-added products, and achieved remarkable results. As a result, the urea is no longer the only supporting enterprise survival of the aorta, a urea enterprise in Shandong from the reform of the first pot of gold dug.
From the analysis of the dealer level, large quantities of reserves caused by market risk, they have some storage and urea as a warning for the future, because of serious loss of dealers, in the price ascending stage chasing stock, is more cautious than usual. Even engaged in agricultural dealers for many years, for the urea market in recent years without regularity, have lost their judgment. The more the market lost judgment, the more is afraid to purchase, everyone think so, dealers total inventory retention naturally less. In fact, this is precisely the urea enterprise to the market to make an estimate and price judgments of the original capital. In addition, in recent years, corn and seed fertilizer, mostly controlled release fertilizer based, which must reduce the amount of urea topdressing.
The reason of urea enterprise is here, the decrease of production capacity and the decrease of market holding quantity have become the real reason for the high price of urea fertilizer season in the short term. Northwest successive thunder showers, Hualu-Hengsheng urea soared again, in July 16, 2017, the factory price of 1655 yuan tons of particles, large particles of tons of price of 1635 yuan, the price of 605 yuan tons of ammonium bicarbonate. Corn fertilizer soon, because Hualu-Hengsheng yield is very low, the northwest end of the month before or will further push up the price of urea.