With the Central Environmental Protection Inspectorate working in the nationwide, the compound fertilizer market in the peak season has undergone many waves. JOYOU Information Analyst Shi Xuxu said that the current industry decline in the rate of decline, especially in Shandong and Sichuan closed down more enterprises, making some parts of the proportion of shipment slightly nervous. Raw materials, urea prices bottomed out, some areas prices rebound slightly; potassium sulfate prices continued strong momentum, Mannheim device continuously underemployment, caused by Jan Huojin price, now 50% powder factory price is 2550 yuan ~2600 yuan / ton. Despite the presence of environmental protection and good support raw material prices, fertilizer prices are still difficult now for upward trend. In this regard, Shi Xuxu said that this is because of excess fertilizer production capacity.
Productivity pressurization
In recent years, the process of compound fertilizer production has been continuously promoted, and the backward equipment and substandard enterprises are facing the risk of production or rectification. There are thousands of fertilizer enterprises in China, and the reform is difficult. In addition, because of the bad habit of selling on end and the low market of compound fertilizer, many weak dealers are gradually withdraw from the market of agricultural products. Eliminate backward production capacity will improve industry concentration, optimize the market.
In the context of overcapacity, the compound fertilizer supply exceeds demand, while grain prices have continued to decline in recent years. Corn prices have been at historic lows, the downside is limited, and the corn planting area decreased, the decline in production, the serious contradiction between supply and demand or relief, 2017 is expected to reach the basic balance or corn production. Wait until the new corn market, the supply will be further increased, prices or seasonal downward pressure. For the compound fertilizer, the terminal benefit ability is not good, which directly affects the fertilizer enthusiasm, the fertilizer demand or decrease, and the contradiction between supply and demand of compound fertilizer market is still sharp.
The great efforts to environmental supervision drive compound fertilizer to backward production process, although short term labor pains, but long-term view will be beneficial to the development of the industry.
Supply side reform accelerated
Yu Lijuan, an information analyst at JOYOU, said the chemical industry's supply side reform process was accompanied by intensified environmental governance, and under the pressure of environmental protection, the chemical fertilizer industry is undergoing significant changes. Chemical fertilizer industry is a high energy consuming and highly polluting industry. It is more demanding for enterprises to change coal to gas or to deal with dust and noise. Environmental protection supervision has played a positive role in promoting the adjustment of the fertilizer industry structure and upgrading of product categories. At present, the chemical fertilizer industry is not up to standard, serious waste of old production capacity is accelerating out of the market, replaced by efficient, low pollution new capacity. In the aspect of product structure, enterprises are introducing new ideas, and green, efficient and environment-friendly new fertilizers are gaining more and more market share.
In recent years, compound fertilizer market, raw materials, prices, profit trends were collated and compared, from which we can see the changes in the market.
Price, "busy season" seems to become a complex fertilizer market is difficult to break the "Curse", but the oversupply is the state will exist for a long time. This fall, the market enterprises collect good situation, but also in a variety of major incentives to achieve results. In August, environmental protection pressure, device operation rate lower, urea prices first suppressed, after, potash fertilizer and phosphate fertilizer prices have always been strong, but compound fertilizer prices are still difficult to uplink, but overall, the price is better than last year.
As for the cost of the enterprise, the profit level has declined since the price of raw materials has risen considerably compared with last year. In addition, taking into account environmental protection pressure, this year more enterprises have parking, relocation, device transformation, so the cost increase rate is higher than in previous years. But in the wave of reform, through the throes of the industry as a whole, the road forward will be more smooth.
At present, the domestic compound fertilizer market is in the peak season of delivery in autumn. After the continuous shipment in August, the market has more than half of the total fertilizer supply. Plant operating rates continued to decline, the raw material price shock instability, local supply slightly tight, multiple positive, compound fertilizer market price hike is potential, but is expected to post orders will be gradually reduced, the market price of real or difficult trip. The market in reform is not calm, and the compound fertilizer market is struggling.