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How can urea increase when urea increases?
Time:2018-12-19   Read:585second  

Talking about the recent fertilizer market, it can be said that "mixed joys and sorrows". The fluctuation of raw materials market makes the stagnation atmosphere of compound fertilizer winter storage market increase continuously. The overall winter storage progress is obviously backward compared with the same period in previous years, and the saw-saw battle between enterprises and distributors is still continuing. Compared with compound fertilizers, the water-soluble fertilizer market is now in the ascendant. Especially after urea price's revival in recent days, the prospect of water-soluble fertilizer market in winter is brighter.

After the official landing of the news of "additional 4.15 million tons of fertilizer depleted storage in 2018/19", the urea market was supported to a certain extent, and then the mainstream urea quotation in Shandong and Lianghe began to rise slightly. The revival of urea price not only brings hope to the market itself, but also promotes the progress of the finished fertilizer market. As a leader in new fertilizers, water-soluble fertilizers also have a "bottom gas" to meet the challenges after.

First, the cost aspect. Generally speaking, raw material prices are indeed at a relatively high level for most of this year, and the cost support of manufactured fertilizers has been relatively strong. Not long ago, when the demand for Industry and agriculture was weak and there was no good prospect for the international market, the price of urea once fell, and the market atmosphere was strong. To some extent, it reduced the confidence of downstream picking up goods. Recently, local urea prices have stopped falling and rebounded. Although the range is limited, the cost support for finished fertilizers has increased again. For water-soluble fertilizers, price fluctuations are not frequent. In the case of collective good raw material prices, the willingness of enterprises to adjust prices may also be strengthened.

Secondly, the demand side. Unlike traditional compound fertilizers, water-soluble fertilizers are in high demand in winter. There is a certain amount of water-soluble fertilizer in greenhouse vegetable cultivation in the northern region and fruit cultivation in the southern coastal region. Under the circumstances of relatively low price of field crops and frequent natural disasters in successive years, the traditional ideas at the grass-roots level have changed, the planting area of cash crops in some areas has increased substantially, and the demand for water-soluble fertilizer has also increased accordingly. The centralized release of demand keeps the water-soluble fertilizer market warming up. In the long winter market, the downstream purchase of water-soluble fertilizer will probably accelerate, and the order situation of enterprises will also improve.

Finally, other aspects. At the beginning of 2018, our government issued a plan for the adjustment of planting structure. In the process of adjusting and optimizing planting structure and accelerating the development of modern ecological agriculture, by means of large-scale planting, standardized production and industrialized development, the planting area has been continuously expanded, new varieties have been popularized and demonstrated, and a number of agricultural products with high economic benefits have been created. In addition, with the popularization of water-saving irrigation system, a large number of agricultural products have been produced. With this technology, water and fertilizer integration has gradually come into people's sight. It has won the recognition of many users by using more efficient fertilization methods. Whether it is to adjust the planting structure or to implement the "water and fertilizer integration" in an all-round way, it will promote the development of water-soluble fertilizer market.

In summary, the revival of urea market has brought confidence to the price development of finished fertilizer market. Under the background of many favorable factors such as the release of demand and the strengthening of policy guidance, the "money" path of water-soluble fertilizer is immeasurable.

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