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As the saying goes, "A hundred miles are different in wind and a thousand miles are different in customs." Today, the festival atmosphere in Northeast China is still strong. It may not fade completely until the 15th day of the first lunar month. Also affected by the Spring Festival holidays, fertilizer markets around the country have stagnated for a short time, and have been functioning normally in recent days, but have not achieved a real recovery. With the approaching of spring farming season, many market participants have been unable to sit on their stools, and when to take the goods has attracted much attention.
At present, there are obvious gaps in the market of some spring-ploughed fertilizers. If we can not replenish the warehouse in time, we are afraid that it will increase the risk of "no goods to sell". In the overall market is not good and turbulent, prudent operation may be the choice of most distributors, but demand is imminent, timely hand in case of occasional need is also important, therefore, after the Lantern Festival, the compound fertilizer market will be "re-ignite
Firstly, the raw material market shocks. After the festival, the raw material market is doomed, the nitrogen, phosphorus and potassium fertilizer groups are falling, the price drops are uneven, and the overall market atmosphere is depressed. Demand for Industry and agriculture is sluggish, supply is increasing gradually, urea market is stagnant, favorable factors have not yet emerged; ammonium continues the pre-season slump, new orders are scarce, inventory backlog, low prices, short-term stability; potassium chloride port supply is temporarily on the high side, domestic demand is limited, prices are also under pressure. Faced with the complex trend of raw materials, both upstream and downstream are difficult to cope with. In the early stage of post-festival market start-up, some compound fertilizer enterprises may introduce highly competitive price and preferential policies in order to seek the increase of sales volume.
Secondly, the downstream gap is slightly larger. The high price of compound fertilizer before the festival has severely impacted the confidence of distributors in reserve, resulting in more local surplus demand. It is understood that the reserve quantity of spring tillage fertilizer in Northeast China so far may be only about 40% of the previous year. Before the selling season, the demand will eventually be released, which may play a certain role in driving the price of compound fertilizer. In addition to Northeast China, after the Spring Festival, the returning green fertilizer market of wheat planting areas in Central Plains officially began, and the phenomenon of centralized downstream picking increased. Before production and transportation have not fully returned to normal, the local tight situation will also bring benefits to the stability of the price of compound fertilizer in the follow-up.
Finally, supply may be tight. Above all, the centralized release of local demand may lead to tight supply. However, at the beginning of this year, in the work of eco-environmental protection in China, it was emphasized that it would take four years to complete the second round of central ecological environmental protection supervision and "looking back". Although after many environmental inspections, most enterprises have met the normal production standards, the pressure of environmental protection has increased again. In addition, transportation is equally important. We have heard that the frequent rain and snow weather in some parts of southern China in recent days and the wet and slippery roads are bound to have a negative impact on fertilizer transportation. Therefore, the heat of the compound fertilizer market will increase next.
To sum up, Feicheng has a dull start year and a pessimistic atmosphere. With the approaching of spring tillage season, the increase of demand may push the market forward. However, in the face of fierce market competition, the price war in enterprises will also be warmer and warmer, and the downstream still needs to be faced with cautiously.vv
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