At the beginning of September, the price of urea and rose so far. Up to now, the Shandong urea mainstream factory quotation has risen by 50-90 yuan / ton to 1550-1560 yuan / ton, the factory has reached 1520-1560 yuan / ton. The urea market demand is relatively off-season, the price of urea rebound small is unexpected, perhaps there are some agricultural friends still have some doubt, then we stroked the end, why the price of urea.
First of all, at the beginning of the month to the local environmental protection work decompression, significantly improved short. Xiao Bian in the previous discussion has said that environmental inspection uncertainty, agricultural people need to pay attention. This does not mean that the face is changed face. For long-term paralysis of the industrial market, downstream customers purchase intention has been relatively strong, relatively tight goods, at the beginning of the month Shandong local environmental protection inspection team to evacuate, industrial enterprises seize the opportunity, then check the intermittent period of clutch production. Downstream feedback, at the beginning of the month as part of the plywood enterprises have pre-sale lots of finished products, while the inventory is very limited, and then began to purchase large quantities of urea and other raw materials, to prepare for the production of urea; Shandong enterprises said, Linyi and other places to purchase quantity of urea fertilizer increased, the early autumn are still stepping up production fertilizer to market niche. Therefore, the price of urea also began to rise, the current round of rising prices of urea in the various factors, environmental protection is the most powerful support, the individual enterprises in Shandong factory quotation rose once 50 yuan / ton.
Secondly, the urea enterprises have no more inventory pressure. China fertilizer network data show that in 2017 China's urea industry operating rate remained at 50-60%, the daily output of 145 thousand tons in the next, although greater demand for the first half of the market has passed, but the social inventory is relatively low, the stage before the enterprise implementation of low-cost marketing orders buyout policy and the Fed also eased the pressure increase in business inventories this work should be improved, and precisely in the executive order on the occasion, the sale amount of urea Enterprises Limited, part of Shanxi enterprises had a brief stop orders and the implementation of pre advance.
Apart from supply and demand, raw materials, coal prices continued to rise, but also to bring strong support for the price of urea. At present, part of the urea enterprises in Shandong anthracite plant to about 1100 yuan / ton; Shanxi part of the urea enterprises anthracite to the factory about 900-920 yuan / ton, equivalent to the full cost of 1450 yuan and 1330 yuan. So, although the price of urea as a whole rises by nearly half a month, a few enterprises are still not completely out of the cost pressure, and some of the high cost enterprises still can only make profits on the chemicals they produce.
In addition, the high international prices and this round of bidding in India have brought confidence to the domestic market. International urea prices continued to rise, this round of India IPL company purchased urea tender in October 23rd prior to loading on Friday a bid with the west coast of India, the lowest bid price of $241.22 / ton CIF, the east coast of lowest bid price of US $251 / ton cif. The latest India counter-offer was $241.22 to the west coast port and $246.91 to the east coast port, higher than the minimum tender price of $11.68-42.41 / ton for all tenders as of this year.
In summary, the rise in urea prices in the short run is necessary and well founded. However, perhaps a friend can discover, before is "short" to modify the environmental pressure, the central environmental protection department has said, since September 15, 2017 will be sent 102 inspection group stationed in 2+26 City, then fall to urea fertilizer production enterprises to bring demand will come to an end, the downstream industry or will once again return to a state of paralysis, urea prices may also end. High prices of raw materials and coal prices have gone up, and some enterprises also said that coal mining is slightly difficult, and then friends of agricultural products need to continue to pay attention to the changes in the rate of operation of the urea industry and the impact of environmental pressures.