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After the festival, urea rises again, waves rise and fall, and procurement is difficult.
Time:2018-10-15   Read:593second  

India's MMTC on October 5th issued a tender for 560,000 tons of urea loaded on November 19th. The winning price was nearly US$80 higher than the winning price of the importer's urea tender on August 1st, but the tender no longer allowed Iran to supply urea goods and attracted the tender volume. About 1 million 750 thousand tons. The Indian importer ended the urea tender in the above circumstances, but international sources said that MMTC purchased additional urea goods before the original tender price expired on October 12, and it was confirmed that the total successful tender was about 750,000 tons by the end of trading on October 11. Affected by this, the domestic urea quotation has risen sharply in the near future. The urea quotation in Shandong, Lianghe and other places has risen more than 100 yuan compared with the quotation before the festival. The urea delivery price in Linyi area has risen to about 2200 yuan at one time. Although the quotation is on the high side, some industrial hard demand still exists, and there is still a certain amount of urea purchasing in the lower reaches of the high price. While the industry was still shocked, the overall price of urea has quietly declined. It is known that the price of new single urea from some large factories in Shandong Province dropped to 2070 yuan yesterday. According to some industry insiders, the main reasons for the price adjustment are as follows:




First, the price increases temporarily exceed domestic acceptance. On the eve of National Day, in order to ensure the normal operation of the shipping links, most enterprises make certain concessions in price. At present, a certain number of low-priced goods have flowed into the market, agricultural winter storage has not entered the peak season, and industrial demand unless the urea reserve is extremely scarce, it is impossible to procure, even if the goods are not enough. Holding a short-term production plan, in other words, the domestic demand for urea downstream has been rapidly narrowing in the near future, and the Indian purchasing turmoil has passed. Even Bangladesh has begun bidding recently, but tens of thousands of tons of total tender volume can not absolutely support the current domestic urea price, so the offer moderately fell.




Second, domestic demand is temporarily off season. Due to the frequent occurrence of "off-season price increase and off-season price drop" in the fertilizer market in recent years, although urea is a hot commodity, traders are relatively cautious in purchasing to avoid risks. In addition, if purchasing at this stage, the reserve cycle is relatively long. Although urea production capacity has been contracted in the past two years, but from the whole supply. In view of the situation, urea production capacity is still in a certain excess state, coupled with this year's gas limit geometry is not yet clear, downstream procurement is relatively slow.




In summary, the recent decline in urea quotations or due to high prices, or the demand season has not yet been timely relay, or due to individual enterprise capital turnover pressure, can soon enter the heating period in China, energy and raw materials supply will become tense, such as Xinjiang and other places, some urea enterprises have stopped production due to insufficient natural gas supply, coupled with coal The price rise is expected to be modest, and urea prices will remain deadlocked for some time before winter storage starts.

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