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Can urea rebound save compound fertilizer from spring?
Time:2019-03-02   Read:616second  

At the beginning of March, the pace of spring is getting closer and closer, and the temperature in the North has gradually warmed up. With the increase of fog and haze weather, we can imagine that we will soon enter the period of spring ploughing. Fertilizer use is about to enter a critical period. However, since the Spring Festival, the market of compound fertilizer is still very depressed. Only a small amount of commodities have started to go on sale in some areas. Recently, the price of urea has rebounded, so it has been in a downturn for a long time. Will the demand for compound fertilizer continue to warm up urea and usher in spring?

First, how long will the urea rebound last? Since late February, urea prices, which have been in a declining state, began to rebound. Now, the mainstream quotation of small-grain urea in Shandong Lianghe area is about 1870-1910 yuan/ton, which is about 50 yuan/ton higher than the previous period. The main reason is that the demand for winter wheat topdressing in Central Plains began to start, urea is widely used in some areas, and the demand for high-nitrogen fertilizer raw materials also appeared, so the demand for urea is obvious. If the price of vegetable rises slowly and demand releases well, and if it can be started by environmental protection after March 5, the rise will last until March 20, but if the increase is too large and too fast, and the increase in the late profit margin will probably end soon.

Secondly, how about the recent shipment of compound fertilizers? Influenced by the slight warming of urea prices, the demand for compound fertilizers also shows signs of starting up. Although the volume of purchases is not large, it is also better than before, especially in Shandong, Henan and Northeast China. The daily purchases of some enterprises have risen from 100-200 tons/day to about 2000 tons/day. Of course, there is still a wait-and-see downstream, and the price of urea is uncertain. Persistence, if the urea rise can continue until March 20, then the compound fertilizer spring farming market will be expected to warm up, business goods will gradually increase.

Thirdly, the two sessions will be held soon. Can we take advantage of environmental protection? The second session of the Thirteenth National People's Congress and the second session of the Thirteenth National Committee of the CPPCC will be opened in Beijing on March 3 and March 5, 2019, respectively. The duration will be about half a month. If the environmental protection is strengthened at that time, the urea enterprises will be limited to start construction and the price will still rise. Then the trend of urea revival will be used for compound fertilizer, and the spring market will also rise. Spring can be welcomed.

Of course, all are in the hope of expectations, if you want to come early in spring, you also need to rely on raw materials, demand and other spring breezes to brush your face, but the compound fertilizer shipment has been a good expectation, the price is very difficult to have the hope of a rebound, maintaining price stability in the rapid shipment is the concern of the compound fertilizer industry.

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