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Fertilizer prices are rising all over the world, why is water soluble fertilizer indifferent?
Source:China fertilizer network   Time:2017-10-25   Read:497second  

Recently, the fertilizer market is a hot topic that must be the compound fertilizer raw material prices skyrocketing, nitrogen, phosphorus and potassium in the short-term price quickly jump up, according to the fertilizer network to understand, at present Shandong area urea mainstream factory price 1700-1750 yuan / ton, or even large grain urea price of individual enterprises has crossed the threshold of 1800 yuan Hubei area 55% / ton; ammonium mainstream factory price 2000-2150 yuan / ton, in the short term there is still up space; 50-51% powder of potassium sulfate in Qinghai salt water system factory price up to 2450-2650 yuan / ton. In the face of raw material costs continue to trend upward, compound fertilizer enterprises have gradually started to adjust prices, although currently in fertilizer fall off stage, less demand, but most enterprises have product price hike; but the water soluble fertilizer, the majority of enterprises did not offer large-scale adjustment, but remained stable.

First of all, the market has just started, and the demand has not been fully released. At present, the seasonal demand of water soluble fertilizer is in its early stage, and large-scale downstream procurement has not really started. It is expected that the market will start gradually in November. On the one hand, because of the increased demand is not much, and some enterprises just resume production, after the environmental protection inspection after production is limited, has not been a significant increase in volume to the majority of enterprises, and even a few companies are still in the sale of inventory, so large-scale adjustment of the market price trend has not really formed; on the other hand, in recent years the water soluble fertilizer use has started popular production of water-soluble fertilizer enterprises increased, similar to the traditional fertilizer situation, water soluble fertilizer market competition is more intense. The market for the initial stage, the majority of enterprises to seize the market share, the price increases the confidence is insufficient, how to take moderate sales, in order to win the marketing strategy, and that short-term price fluctuations will not be too obvious.
Secondly, compared with other fertilizers, the profit margins are larger. We all know that water soluble fertilizer price is much higher than the traditional fertilizer, the main reason is that raw materials and production process, the nitrogen, phosphorus and potassium fertilizer of the traditional raw material prices rise rapidly, but the addition of nitrogen and phosphorus, potassium and other nutrients corresponding also need the raw material for the production of water soluble fertilizer, to fulvic acid potassium as an example, currently on the market price difference, natural mineral fulvic acid potassium extraction to 10000 yuan / ton, fulvic acid potassium and plant fermentation to produce low to 2000 yuan / ton, while the low-end water soluble fertilizer material for general materials, but the processing of the product the finished water soluble fertilizer are higher priced, so the profit margin is far greater than other ordinary fertilizer. Because the water soluble fertilizer profit margins, the majority of enterprises did not feel temporarily increase the cost of the profits brought about by the lack of pressure, so large-scale price hikes have not yet been fully started.
Finally, the price of agricultural products is low, and the grass roots purchasing fertilizer is not active. Autumn and winter water soluble fertilizer use for greenhouse vegetable planting area in recent years, affected by the adjustment of planting structure and other factors, such as economic fruit and vegetable crop acreage increased, yield also increased, but the increase in the number of supply may cause a significant decrease in the prices of agricultural products. Although the price of agricultural products has declined, the cost of planting is still high, and the profits of farmers at the grassroots level are decreasing. In view of this situation, some grassroots farmers abandon the use of high price water soluble fertilizer, instead of low price or traditional fertilizer to replace, thus affecting the market sales of water-soluble fertilizer. Most of the water soluble fertilizer enterprises in order to avoid the sales progress and other a series of adverse effects, there are profit margins under the situation and dare to substantial price adjustment, so the raw material price changes on water soluble fertilizer price effect is not very obvious.
In summary, the current domestic water soluble fertilizer prices remain stable, although the short-term price of raw materials is still likely to continue upward, but the expected water soluble fertilizer prices will not be too significant to be floating, the real fertilizer peak is approaching, the upstream and downstream demand started to progress or will become an important factor of water soluble fertilizer the price trend.

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