In mid-March, spring blossoms, like everything else, gradually revived Feicheng. With the approaching of the season, the fertilizer market, which has been depressed for a long time, has warmed up. Although some fertilizer prices are at a low level, the trading atmosphere in the market has improved. Compared with the previous standstill, the pressure on both enterprises and distributors has been greatly reduced, and even some regions have heard of a slightly tight spot supply.

At present, the overall price of fertilizer fluctuates with each other. It is worth noting that urea prices continue to rise after the rebound, which is like a runaway wild horse. It is understood that the mainstream urea ex-factory quotation in Shandong has reached 1910-1940 yuan/ton, up nearly 50 yuan/ton from the end of February. With the start of industrial and agricultural demand and the reduction of supply of urea plants in Shanxi during the "two sessions", urea prices have risen again and again. It is expected that the demand downstream will accelerate or release after the meeting, which will inevitably play a further role in boosting the urea market. Good raw materials, finished fertilizer market will also be good, compound fertilizer is in the traditional peak season, the future is self-evident, but water-soluble fertilizer is also hot.

First, the advantages are obvious. Compared with traditional compound fertilizer, water-soluble fertilizer has three advantages, one is price advantage. The price of regular water-soluble fertilizer products is much higher than that of compound fertilizer, but it is also relatively stable and has a larger profit margin. Secondly, the advantages of fertilizer efficiency. As the name implies, water-soluble fertilizer can be completely soluble in water, more conducive to crop absorption, coupled with a variety of trace elements, the application effect is more obvious; third, industry advantages. In recent years, the compound fertilizer market has become more and more depressed, the industry chaos has also begun to increase, low prices, counterfeit supply flooding the market, dealers are trapped, but water-soluble fertilizer as a new product, with its own characteristics, it is easier to obtain widespread acceptance downstream.

Secondly, demand continues. Generally speaking, there is more demand for compound fertilizer and compound fertilizer in spring farming market, and water-soluble fertilizer is more active in spring Market in recent years. One reason is that the planting structure has been greatly adjusted. Taking the northern region as an example, affected by the regional and weather conditions, the area of economy as a planting area is limited. With the maturity of planting technology and the improvement of planting conditions, the area of each season increases obviously. The second reason is that the price level of field crops is low, and the situation that the income of the lower reaches is insufficient sometimes. In order to ensure the income of agriculture, the grass-roots units in some areas can only find new ways to choose. The amount of water-soluble fertilizer will naturally increase when crops with higher economic benefits are planted.

Finally, policy guidance. In mid-February, the State Council issued Document No. 1 of 2019, which once again proposed to strengthen the control of agricultural non-point source pollution, carry out agricultural fertilizer-saving and drug-saving actions to achieve negative growth in the use of chemical fertilizers and pesticides. The central purpose of the repeated calls for negative growth in fertilizer use is to protect the environment and promote sustainable development. In order to realize the negative growth of fertilizer use, it is necessary to improve the efficiency of fertilizer use and accelerate the transformation of traditional fertilizer market. Therefore, the development space of a series of new fertilizers, such as water-soluble fertilizer, will be wider.

In summary, the recent warming of fertilizer market is due to the rising price of urea. On the basis of the continuous improvement of market demand in spring, urea market will further boost the price of finished fertilizer. It is expected that the price trend of compound fertilizer and water-soluble fertilizer will be stable in the short term.