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Urea Distributor: Losing Money to Make Calls
Time:2019-01-24   Read:575second  
Whether it is factories or major small and medium-sized agricultural distributors, there will be a lot of "losing money and earning calls" among them. So far, urea market has been boosted by India's tender, but there is no "sunshine" shine. Today, the domestic urea market as a whole is weak and shipments are slowly rising. Some urea enterprises in the main producing areas have indicated that they plan to resume production in the second half of the year. Demand is weak and the terminal is waiting and seeing, fearing that after urea reserve, it will become hot potato or make a profit by losing money.

_According to many regional agricultural dealers, the wholesale price of urea is low, and according to the actual transaction volume, the terminal operation will be more cautious. For example, the main wholesale price of urea in Lianghu area is about 1980-2020 yuan/ton, the local price of urea car plate in Sichuan is only about 1900 yuan/ton, and the demand in industry is not very large. Today, the receiving price of urea for compound fertilizer enterprises in Linyi area will be more cautious. Ge 1870-1900 yuan/ton. Near the Spring Festival holidays, distributors at all levels are more cautious about urea reserve, buying up and not buying down, the concept of less reserve before the Spring Festival and reimbursing orders in the spring, and even some people joke in the market that "who buys fertilizer before the Spring Festival should buy new year's goods". This shows that the difficult situation of domestic fertilizer market in the next period of time, manufacturers focus on inventory. Digestion, price adjustment and other mainstream trends change.


On the one hand, the urea industry start-up rate is rising. According to the statistics of China Chemical Fertilizer Network, up to now, it is about 45.64%, and the next part of gas urea enterprises have the possibility of resuming production. Some urea enterprises, such as Southwest China and Inner Mongolia, are preparing for the resumption of production. On the other hand, large and medium-sized urea enterprises in the main production areas are ready to resume production in the middle and late ten days. Thirdly, it is the love of liquid ammonia that kills each other. Especially the recent decline in the start-up of ammonia enterprises has led to the pressure of liquid ammonia manufacturers to deliver goods, and the price has been continuously lowered, which has prompted some enterprises to shift their production focus to urea. In addition, with the approaching of the Spring Festival, transportation constraints, consideration of reducing inventory, comparison of storage with urea and other comprehensive factors, some enterprises are more willing to produce more. Urea produces less liquid ammonia, which aggravates the pressure of urea manufacturers. Finally, the demand is not improving in the short term, mainly to agriculture is the greatest concern, large and medium-sized agricultural dealers before the Spring Festival or to avoid risks without reserve, the grass-roots market has no market value, funds are not sufficient or far away from the use of fertilizer before the Spring Festival and do not plan to reserve, the latter with the use, after all, it is difficult to earn money to buy and sell compound fertilizer enterprises in industry; Industry, power plants and other overall demand increase is not obvious, but partial before the Spring Festival there is a decreasing trend.


It's difficult to "pull out four or two kilograms" because of its meager advantages. At present, more people in the market are holding pessimistic expectations, because they can not see much good, but it is not without any good news. First, the good news from exports has not been seen for a long time. India has just issued a tender, which ends on January 16, local time. The deadline expires on January 23, bringing some sunshine to the desperate urea market. It is expected that the factory will be certain in the future. To a certain extent, price operation or even pull up; secondly, before the Spring Festival, before the price of liquid ammonia has not fallen sharply, some urea enterprises may give up their efforts to temporarily transfer the production focus to liquid ammonia to ease the pressure of urea enterprises'shipment; thirdly, some compound fertilizer enterprises or traders should make appropriate reserves before the Spring Festival, which will alleviate urea enterprises to a certain extent. Shipment pressure of industry.

Finally, comprehensive urea market factors, good support weak need attention, bad luck is ubiquitous, even if there is "empty" label support, it is difficult to completely reverse the downturn of the market, but in the short term manufacturers will take advantage of good bidding strength to raise prices, but distributors "lose money to earn shouts" business is still difficult to do, still need to be cautious.

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