Let urea soar for a good year
Time：2019-01-24 Read：582second
In recent years, the fertilizer market is almost calm and the demand for Industry and agriculture is relatively general. Since the onset of the winter storage campaign, the stalemate has taken the "upper hand", especially in the fertilizer market. Although the winter storage quotation is at a high level, the downstream response is not strong. At this stage, whether the number of shipments or the downstream stock-up progress, far behind the same period in previous years, with the large-scale weakness of raw materials market, the finished fertilizer market before the Spring Festival has long been undervalued.
On Jan. 10, MMTC India issued a tender for urea with uncertain quantity, due on Feb. 28. For a time, the domestic urea market reacted quickly, urea prices in Shandong, Anhui and other parts of the region rose slightly, the market decline or thus ended. Originally thought that the urea market will be depressed, the price of finished fertilizer has declined steadily, but the sudden positive also boosted market confidence, in the short term, water-soluble fertilizer will continue to move forward steadily.
First, demand continues to release. In winter, affected by climate factors, many field crops can not be effectively planted. The melon, fruit and vegetable crops with small area and higher economic benefits are favored by farmers all over the country. Today, planting technology is gradually mature, the planting structure in the northern region has been greatly adjusted. Even in the cold winter, the growth of cash crops is very good. In addition, the improvement of grass-roots planting habits has also promoted the transformation of planting structure. While abandoning traditional agriculture, new ecological agriculture has stepped onto the stage. Therefore, the demand for fertilizer has changed significantly. Especially in winter, the demand for water-soluble fertilizer will last for a long time.
Secondly, the application effect is obvious. Compared with traditional fertilizers, new fertilizers have many different characteristics, which make the application effect more obvious. Firstly, they are rich in nutrients. In order to meet the growth needs of all kinds of crops, water-soluble fertilizer adds special nutrient elements to the habits of a certain crop to provide superior growth conditions to the maximum extent; secondly, fertilizer efficiency is faster. Generally, water-soluble fertilizer can be applied by sprinkler irrigation or drip irrigation. Fertilizer can be completely soluble in water, and can form a comprehensive contact with the crop itself, so it is easier to be absorbed. In order to increase production and increase value and maximize economic benefits, the stage of new fertilizer is becoming wider and wider in modern agricultural planting structure.
Finally, the price of traditional fertilizer is too high. In 2018, the overall price of fertilizers showed an upward trend. Some of the fertilizers increased significantly. The price of main winter storage of compound fertilizers increased by nearly 200 yuan/ton compared with the same period in previous years. The reason is that the price of raw materials is collectively high and the cost of compound fertilizers has risen. Because of the cost pressure, enterprises have to raise their quotations. The second reason is that the pressure of environmental protection persists. Last year, the high pressure of environmental protection overwhelmed me. In most parts of the country, the production of enterprises is severely restricted, and the voice of local "tightening prices" has increased. Considering that the price of traditional fertilizers is too high and the risk of reserve is too high, some distributors will turn their attention to new fertilizers. Therefore, the market of water-soluble fertilizers will be steadily improved.
In summary, the recent warming of urea market has indeed promoted the further development of the finished fertilizer market. At the same time, the price of water-soluble fertilizer will be stable in the peak demand season. How to further observe the raw materials and supply and demand trends in the future market?
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