The start of the week the price of urea is heavy, the main producing areas of daily 10-20 yuan / ton fell to urea was the pressure, and feel helpless, part of urea enterprises said that supplier is actually can be slightly to control the market price to a certain extent, the current overall demand is abnormally low fan, the price of urea can only follow the downstream market go. The enterprise will try to take more orders in advance, for now the price of goods sold in the future, but for now, little effect.
Nearly a year of urea performance although not excellent, but the majority of enterprises have been separated from cost pressures, the price of urea had moderate from time to time rise, investigate its reason, it is because coal prices, especially environmental protection caused by low operating rate and balance of urea supply industry. Recently, the Ministry of environmental protection again for a large range of strict environmental inspection, 8 provinces in the Sichuan comes to Shandong, and Xinjiang, and put forward the "new management idea of five step of environmental supervision, environmental protection and law enforcement will be more and said; the Ministry of Environmental Protection Bulletin, will strictly control" scattered sewage enterprises "as one of the important content of strengthening supervision, to upgrade of emissions of the enterprise, shall be closed before the end of September this year, the enterprise law gradually become the norm.
Well, in the current downturn due to abnormal downstream demand, urea prices continued to fall sharply on the occasion, such a large-scale, severe environmental protection can again bring support to urea? Be the umbrella of urea price?
Sadly, as far as the present situation is concerned, environmental inspection has not yet brought good results for urea, but has caused a relatively fatal blow to the production of other industries, such as downstream industry, compound fertilizer and so on. In the overall downturn in the needs of agriculture, work needs to be reduced, undoubtedly brought greater pressure on the urea business. In addition, due to the production of compound fertilizer enterprises Co., procurement is not positive for urea, goods prices continue to fall. According to the China fertilizer network understanding, the current provincial to Linyi industrial urea compound fertilizer factory price is only 1510 yuan / ton, the price for Linyi Shandong real estate urea is only about 1530 yuan / ton, week or up to 60-90 yuan / ton, equivalent to the majority of Shandong enterprises urea prices only 1470 yuan / ton or less.
But fortunately, next environmental inspection has the possibility of restricting the operation rate of urea. On Wednesday evening, just a Xinjiang complex large urea enterprises have a major accident, the accident report is not clear yet announced specific, but the company has said that in the short term will not resume production, subsequent production will be mainly to monitor safety production line, as far as possible to avoid accidents; and in small Cui fertilizer learned that as early as March, the company had a serious accident, the urea production in April 18th has also shut down. Another inaccurate news, the northern part of the early stage of production of a medium-sized enterprises may also be forced to stop production because of the accident. Perhaps these accidents themselves and pollution and other environmental indicators have nothing to do with, but this is tantamount to "crime against the wind", the environmental protection department is likely to focus more on the urea business.
So, if the urea industry started, frank and sincere has significantly reduced, urea prices will rebound possible? Not necessarily, even about 45-50% once again back to the first half of the case, the first half of the existing large agricultural needs in the country, such as operating is still seldom brought by local fertilizer urea prices rose due to tense situation, in the major agricultural companies still need to reserve plan, because of environmental protection the production is limited, there is still the price of urea rebound more obstacles. But the environmental inspection can be restricted to a certain extent supply, alleviate the pressure of market competition and low cost large amounts of urea outward from the slightly reduced due to sales and inventory pressure forced a large reserve or low in Hong Kong and other situations, but also to a certain extent, the decline slowed down the price of urea.
In summary, the current round of large-scale environmental inspection or can only slow down speed of urea, urea prices to rebound, small Cui remains to be temporarily the agricultural company collective procurement occasion for urea enterprise sales bring good prices rebound views and support. In addition, the recent fluctuations in coal prices, and still expected to rise, or the cost of urea will once again bring support.