Like this winter's climate in Northeast China, the winter storage market of compound fertilizer is extremely abnormal. So far, the winter storage situation in some areas has not been significantly improved, and the sawing battle between enterprises and distributors has intensified. In addition to the low-price supply in the early stage occupies a certain part of the local market, the total amount of subsequent downstream purchases is relatively limited, the overall demand or there are still some gaps.

Summarizing the reasons is that the winter storage price of compound fertilizer has risen sharply compared with previous years, and the downstream purchasing power is limited. However, urea prices have gradually declined in recent days, the cost support of compound fertilizer has been shaken, and the confidence of downstream delivery has been frustrated again. Based on this, many enterprises and distributors have found new ways to promote new fertilizer-based marketing model, especially water-soluble fertilizer products have been widely recognized, and their market heat and occupancy rate are rising steadily.

Firstly, the profit margin of water-soluble fertilizer is still acceptable. With the development of the traditional fertilizer market year by year, the cost and profit are more transparent. Distributors are not only difficult to sell, but also more difficult to make money. Compared with traditional fertilizers, the profit margin of water-soluble fertilizer products is still acceptable and it is relatively easy to make money. Firstly, the raw materials of water-soluble fertilizer products are different from ordinary fertilizers, with stronger diversity, no unified cost reference standard, and the pricing of enterprises is more flexible; secondly, the water-soluble fertilizer industry is in its infancy, the market is not very perfect, the brand emerges endlessly, and the price is not uniform. Qi, or there is a slightly higher price for some products, therefore, driven by profits, water-soluble fertilizer products have been vigorously promoted by enterprises and distributors.

Secondly, water-soluble fertilizers are widely used. Generally speaking, water-soluble fertilizer is mainly applied to cash crops. At present, field crops in some areas are also trying to apply water-soluble fertilizer. First, water-soluble fertilizer has sufficient nutrients and fast fertilizer efficiency. Water-soluble fertilizer not only contains traditional nitrogen, phosphorus and potassium elements, but also adds various trace elements and other substances for different crop production needs to provide more abundant and diverse nutrients for crops. Secondly, water-soluble fertilizer is completely soluble in water and can be applied by sprinkler irrigation and drip irrigation methods, which can maximize its own utilization rate, avoid waste and greatly reduce its relative usage. On the basis of price advantage, the effect of using water-soluble fertilizer is obvious, and the market position of water-soluble fertilizer has been greatly improved.

Finally, the market prospects of water-soluble fertilizers are promising. The rapid development of water-soluble fertilizer market not only benefits from the change of downstream fertilizer habits, but also contributes to the improvement of water-soluble fertilizer market. In 2016, the General Office of the Ministry of Agriculture of China issued a circular entitled "Promoting the Implementation Plan of Water and Fertilizer Integration (2016-2020)", which emphasized that the implementation of water and fertilizer integration is conducive to promoting Zero-growth activities of fertilizer application, improving water use efficiency, and playing a key role in developing water-saving agriculture and controlling the total amount of agricultural water. In addition, some regions vigorously advocated the downstream transformation of planting structure. As a result, the planting area of cash crops has also increased, and the demand for water-soluble fertilizers has begun to increase.

In summary, the recent compound fertilizer market is indeed deadlocked and difficult to overcome. On the contrary, the peak season of water-soluble fertilizer demand has arrived in winter. With the obvious price advantage and increased recognition, it is expected that the water-soluble fertilizer market will move steadily upward in the future.