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Is urea too "wild" to increase the price of compound fertilizer in mind?
Time:2019-03-30   Read:690second  

Recently, besides the shocking explosion of the Xiangshui Chemical Plant in Jiangsu Province, there has been a surprising surge in urea prices. From 1870 yuan/ton of Shandong Xiaopei in early March to 2030 yuan/ton now, the increase is nearly 160 yuan/ton. Even individual enterprises have increased 150 yuan/ton at a time. Urea's rise is a bit too wild, so in the face of this situation. Wild raw material rising trend, compound fertilizer prices can be on schedule?

First of all, what is the price trend and motivation of urea? At the beginning of March, the price of urea rose slightly and slowly. The main reason for the price increase was still the start of spring fertilizer demand in some parts of the country and the convening of the two sessions. Some enterprises were limited to start construction. Until mid-March, the price of urea continued to rise after the mainstream quotation of small granular urea rose to about 1970 yuan/ton in Shandong Province and temporarily stabilized for two days. The reason was that some urea quotations continued to rise. There are many orders to be issued by enterprises. In addition, on March 21, the explosion of Yancheng Chemical Plant in Jiangsu Province further upgraded the safety and environmental protection inspection. The start-up of chemical and fertilizer enterprises in Shandong Lianghe and some parts of Jiangsu Province is somewhat limited, but it is awesome to say that urea prices have risen again. For example, the quotation of individual enterprises in Inner Mongolia has risen 150 yuan/ton in one day, and the medium-sized particles are directly from 1870 yuan/ton of the factory. It soared to 1950 yuan/ton, which was very fierce.

Secondly, the price of high nitrogen compound fertilizer has risen slightly. Is it the beginning of price increase or the end of goods? Considering the inertia thinking, the rising urea quotation should bring some favorable factors to compound fertilizer enterprises, but in fact, most of them do not welcome this urea rise. First, the spring orders are mostly collected in advance after winter storage and Spring Festival, and the price has been locked in. Recently, the sharp rise in urea price has given the enterprises that introduced the ultra-low explosive compound fertilizer price in the early stage a head-on. Stick, in the face of increased costs, the price of finished compound fertilizer products had to rise at the end of March, which would cause a lot of complaints downstream; the second reason is that the end of March and early April is the time for compound fertilizer enterprises to operate summer fertilizer, while reserving raw materials and promulgating price policy, while the unexpected surge of urea destroys the whole operation rhythm, corn fertilizer is mainly high nitrogen fertilizer, urea surge is bound to increase. Adding enterprise cost also indicates that this summer's fertilizer quotation will not be too low and there will be a slight upward trend. However, the grass-roots grain income is not considerable, and the high quotation of finished compound fertilizer products is not acceptable. Therefore, although the urea quotation has risen, the quotation of a few compound fertilizer enterprises has risen, but it is not wise to increase the price at the expense of the quantity of purchases.

Finally, in any case, urea quotation has indeed risen, the stable market expected by compound fertilizer enterprises has been shattered, and can only face the reality, but how long can urea rise in the latter period last? Can continue to early April or mid-April, is the key market of public concern, spring demand is over, summer demand is about to start, how to operate the latter will be the most critical issue.

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