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Near September, the autumn fertilizer market in the Central Plains of China, such as Shandong and Lianghe, formally entered a peak season. Demand in the lower reaches of the market increased significantly, and the situation of enterprises moving goods also improved. Influenced by the firm price of raw materials, the cost of compound fertilizer has a strong support, coupled with downstream demand pull, most of the region's Wheat Fertilizer quotations have been rising steadily. Although the recent Autumn fertilizer market atmosphere gradually warmed up, but has not yet reached the peak season, the overall weakness still exists, the game between upstream and downstream is still continuing.
It can be said that "a wave is still uneven, a wave has arisen", the autumn fertilizer market smoke has not yet dissipated, and the winter storage market rallying horn has been sounded. Recently, the winter storage market in some parts of Northeast China has started up slightly. Winter storage dealers'meetings of some enterprises are being held one after another. Some of them have introduced the price of winter storage products, such as the temporary price of 45% general sulfur-based products at about 2200 yuan (tonnage price, the same below). It is worth mentioning that the local winter storage fertilizer market started earlier this year, showing a momentum of "unused grain and grass first".
There are three main reasons for this: first, seasonal demand is weak. Observing the present situation of the autumn fertilizer market in different parts of China, we can see that the weak demand is still an important reason for hindering the promotion of the market. Especially in the case of low grain prices and frequent natural disasters, the grassroots farmers have insufficient funds in their hands, and their enthusiasm for preparing farmland is not good. They often hesitate to make payment for the supply, which leads to the shortage of funds. Market interruption is obvious, concentrated fertilizer time postponed; second, enterprises themselves are too stressed. Higher raw material prices not only boost the price of compound fertilizer, but also make the pricing of enterprises in trouble. Once the price is too high, downstream acceptability is limited, it will further delay the market progress, and even weaken the confidence of long-term cooperative customers, so some enterprises can only try to reduce profits and strive for market share. Amount; third, a new low price source is coming. Facing the increasingly fierce market competition, compound fertilizer enterprises have to compromise to the reality for their own survival prospects. Nowadays, the conventional policy of interest rate and floor protection can not effectively motivate customers, so the level of prices has become the key to determine the market process.
It can also be summed up in three main aspects: first, speed up the transformation of the industry. The traditional compound fertilizer market has a high transparency at both ends of supply and demand, and the change of raw material market has a prominent impact on the price of finished products. The introduction of low-priced commodity sources in the early stage effectively alleviated the cost pressure of enterprises, accordingly increased the profit margin, and changed the traditional marketing mode, which has played an important role in speeding up the transformation of the industry. Role; second, improve the market situation. In the overall market environment downturn, enterprises and dealers are in a dilemma between the market to start early, help to increase confidence in downstream delivery, stimulate rapid release of demand, ease the pressure on both enterprises and dealers, play a role in preheating the follow-up market; third, price confusion. At the beginning of winter storage, in order to seize the market, some enterprises quoted lower prices for the early products. With the gradual advance of the market, the raw material market is unpredictable. Then there is a certain gap between the quoted prices of the enterprises and the early prices, which eventually leads to uneven prices, and the end-users'caution in preparing fertilizer is strengthened.
To sum up, the convening of early distributor meetings and the introduction of prices in local winter storage market have avoided the stalemate in the beginning of the seasonal market, and mobilized the enthusiasm of each link. According to the current raw material market, the price of compound fertilizer will continue to be strong at the beginning of winter storage.
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