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In late January, the coldest days, like the weather in the north, now the fertilizer winter storage market atmosphere relatively deserted, the new single enterprise increase slowly, the downstream stocking will is not strong, today the market is still slow to ease the deadlock. Affected by the price trend of raw materials and downstream demand, the slow development of compound fertilizer storage in winter is relatively slow. Upstream enterprises and downstream dealers, though deliberately driving the market forward, are faced with many difficulties.
First, the raw material fluctuates and moves forward. Since the autumn, the raw material prices reached a high level after quickly jump up, the whole began to frequent fluctuations. Taking nitrogen and phosphate fertilizer as an example, according to Zhong Fei net, up to the end of this weekend, the main producer price of urea in Shandong area was 1910-1930 yuan (ton price, the same below), which increased by 30 yuan compared with the same period last week. After the new year's Day urea prices gradually fell to 1900 yuan, due to start is low, the production cost is high, since the beginning of the week after a brief rebound to remain stable; so far, 55% powder ammonium in Hubei accept ex factory price of 2300-2380 yuan, due to weak demand, inventory, ammonium price is down 50 yuan early about. The price of raw materials is the main factor determining the cost of compound fertilizer production. The fluctuation of raw material price and the cost of compound fertilizer will change. As we all know, the price of winter storage in most compound fertilizer enterprises is generally high, and the acceptance level in the lower reaches is always low. Although the price of raw materials has declined, but the cost of compound fertilizer is still high. It is expected that the market price of Hefei will continue to maintain high stability in the short term, with partial or narrow adjustment.
Secondly, difficult to break the deadlock, qihunanxia. Since the start of this year's winter storage, the market atmosphere is relatively low, and the winter storage in some areas is particularly slow. The Spring Festival approaching, the compound fertilizer enterprises to accelerate the process of winter storage, but a short time is difficult to break the deadlock in the market, compound fertilizer is stored in winter "difficult", because on the one hand, as mentioned above, raw materials prices after the frequent fluctuation of compound fertilizer for winter storage pricing predicament, enterprise offers two states: "the quotation high" and "temporarily offer". The price trend remains unclear, the downstream distributors only cautious, halt the troops and wait "; on the other hand, policy regulation was strengthened. It is understood that so far, some compound fertilizer enterprises are still carrying out pre orders. Besides the slow increase of new ones, environmental protection, gas limitation and continuous low operation are also the main reasons. The sluggish demand and low level have made the compound fertilizer enterprise in a dilemma, and it is expected that the composite fertilizer winter market will continue to be in a stalemate before the Spring Festival.
Finally, it is steadily advancing, and the future will be available. At present, although the winter storage market process has been delayed more than in previous years, some areas are steadily advancing steadily. One is because after the fertilizer prices rose to highs, January 15th National Development and Reform Commission and other 12 departments jointly issued the "notice" on the good 2018 spring fertilizer production supply and price stability, price stability notification or make raw materials market gradually clear, prices will gradually hold steady, fertilizer cost is relatively stable, not only help the enterprise pricing dilemma, but also greatly strengthened the downstream distributors stocking confidence; second is due to the early winter preparation is limited, some dealers consider if the latter concentrated large orders, once the enterprise production and shipment of link delay, or will cause the downstream distributors in the passive situation of fertilizer season "no goods to sell", to avoid this, before and after the Spring Festival these dealers will be combined with their own needs, saw the opportunity to continue to purchase.
In summary, the raw material prices fluctuate frequently and significantly strengthen the policy and other factors, compound fertilizer for winter storage market this year does not seem "boom", although a short time difficult to break the deadlock, but with the market regulation and control policies have been carried out, is expected to compound fertilizer market after the Spring Festival or will steadily for the better.
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