The price of urea in late July apparent signs, and soon the market prices fall so far, most of the region as a whole decline has reached 80-100 yuan / ton, some manufacturers are not executed a reserve or insurance policy, with the manufacturers of the words "market price is very poor, No one shows any interest in"; with this same and liquid ammonia Market, Hebei Henan, though a manufacturers will focus shifted to the production of liquid ammonia, in order to weak slow urea to the manufacturers of the blow, but day didn't work, it did not stop the pace of the urea prices, such as the weekend has a factory in Shandong, urea factory price dropped 100 yuan / ton to 1450 yuan / ton. In addition to the factory manufacturers turnover of only 1430 yuan / ton.
The fall of domestic fertilizer production procurement imminent, environmental inspection efforts overweight, urea enterprises affected, operating rates remain low in the special period, the price of urea enterprises why panic, while the downstream is more in a cool?
On the one hand, the supply of urea remained high. Even if this wave of urea enterprises by environmental inspection and check, but a few turns from last year's experience has made most of the basic standards of urea enterprises, if not unexpected (weather, temporary failure) if enterprises in addition to subjective maintenance, will still maintain a high level of opening, so the environmental inspection of the urea enterprise itself no effect is too large; in addition, due to the high price of ammonia recently to support part of the urea ammonia liquid ammonia, but as prices fall, profits continue to be compressed and exhausted, the enterprise will once again transfer the production center, from these two factors, urea enterprises operating rate is more difficult to cut.
On the other hand, it is difficult to increase the demand for terminals. It is understood that autumn fertilizer price and policy of compound fertilizer enterprises introduced more local markets such as the Hubei area enterprises affected by the price of raw materials, compound fertilizer price increases, payment is acceptable, but with the environmental protection inspection in full swing, compound fertilizer enterprises operating rate fell again to about 60%, collection and delivery schedule of enterprises have encountered obstacles the raw material of urea, and procurement schedule has been delayed, and the autumn market with high P, even if the latter compound fertilizer factory began to purchase, the demand for urea is also difficult to have significant support; other agricultural market demand end, relying on a small amount of single supplement is difficult to alleviate the urea could not save the weak market, prices fall speed of two crops and crop area do not need to buy fertilizer, even a few regions such as the southwest East, some economic crops with The total amount of fertilizer, but compared with the first half in the supply of adequate, so a drop in the bucket, and the factory price of urea have fallen below 1500 yuan / ton, the downstream is holding a "buy or not to buy up" mentality, and if the manufacturers form a stalemate if considering the possibility of lowering the price of the first production enterprises the larger, so the downstream users is more wait-and-see attitude. Look at the export market is another industry down, the first half of China's total exports of 2 million 753 thousand and 300 tons of urea, 5 million 49 thousand and 800 tons over the same period last year, reducing the number of nearly half, in the first half of this year exports of urea under have certain expectations or have the chance, but the price in recent times, the expected value is too high.
In summary, the majority of negative factors of urea market, weak market temporarily difficult to get relief, production price is not panic does not comply with the rules of the industry, but the short-term demand is worrying, if not cut prices, stocks rose to a high price decline may be more late.