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After the new year's day, the progress of the winter storage of compound fertilizer did not change with the beginning of the new year, and the advance of the local area was still relatively slow. Since the start of the winter storage, the upstream and downstream dealers are in a dilemma, and the market has been in a dilemma, and it has not yet been significantly alleviated. The reasons are as follows:
First, the price of raw materials fluctuates frequently after the price of raw materials has risen. Since the autumn, compound fertilizer raw material prices have been showing the overall upward momentum, according to fertilizer network understanding, as of this weekend, the Hubei area 55% powdery ammonium mainstream factory quoted at around 2400-2450 yuan, compared with the end of September rose about 550 yuan; powdered potassium sulfate 50% mainstream Mannheim factory price 2900 yuan with the end of September, up about 300 yuan. The price of raw materials has been rising in turn, which has affected the price and sales of the winter storage of the compound fertilizer enterprises in varying degrees, and the schedule of winter storage is backward compared to the previous years. However, while the price of raw materials is rising as a whole, the price of individual raw materials fluctuates frequently, and the confidence of raw materials of compound fertilizer enterprises is always insufficient, and the price of winter storage is also not stable. For example: with urea since early December, prices began to jump up, once exceeded 2000 yuan mark, but after new year's day and gradually declined. The fluctuating price of raw materials compelled the price of compound fertilizer to be in a state of confusion. The difference between the high and low prices is more obvious, so that the downstream stock can not be started.
Second, after the fall of enterprises started running low. According to fertilizer network understanding, since December, the overall national large compound fertilizer enterprises operating rate for three weeks showed a downward trend, the end of the month to about 53% after not always rise. On one hand, raw material prices rose significantly, some enterprises of raw materials consumed after the reserve voluntarily choose to reduce the load, to halt the troops and wait "strategy, to market stability and then plan; on the other hand, accompanied by strong environmental back, natural gas and sudden end. Since the beginning of 2017, the environmental protection situation in the whole country has been very grim. The phenomenon of limited production and parking has been appearing frequently, and even most of them are not up to standard. While the pressure of environmental protection is seriously restricting the start up of enterprises, the "gas shortage" situation in some areas has been alleviated, but it has not been completely solved, and the start-up of enterprises is still restricted. Due to the limited start up business, the pre order production period has been postponed, and the new contract has been controlled. Up to now, some enterprises are still in the early stage of the winter storage order, and the quantity of the new single shipment is very limited.
Third, after the pre orders start new single light. It is understood that since the start of winter storage, in northern China, the downstream market of compound fertilizer overall shipments of 3-4 percent, the early part of the enterprise stored in winter than in previous years the provisional price was essentially flat, the downstream regions dealers worried that late prices will continue to play money orders, along with the winter storage, some enterprises for pre orders have been close off, and the new unilateral is light. On one hand, raw material prices, enterprises adjust pricing for winter storage, after several rounds of rising stocking downstream confidence suffered a serious setback, some dealers to suspend the order plan, and that is likely to be in the next season with the pin with the procurement base with; on the other hand, in recent years the risk of winter storage increases year by year. The importance of the downstream winter began to fade. Affected by market changes and policy regulation, dealers' profits in the winter store haven't increased, but the risk is bigger. In order to avoid risks, dealers in some areas have played the role of winter storage, and have chosen appropriate operation or even abandoned winter storage.
In summary, raw materials of high volatility, started running low and lower demand for light became the main reason for this compound fertilizer for winter storage is difficult to promote, due to the current compound fertilizer price remains steady rise, expected winter storage market in local areas or in the short term will continue in the doldrums.
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