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Urea fell into liquid ammonia panic
Time:2019-04-12   Read:807second  

The magic of urea market lies in its "mystery". Whether it is a veteran or a cautious novice who has been in the circle for many years, it is difficult to understand his mind, to grasp the law of urea price adjustment, to say whether to buy up or not, or to say capricious, but the fact is the same. This is not true. After nearly a month's rise, urea prices have fallen from "bird quiet" to the obvious drop at present, mostly in the range of 30-60 yuan/ton. Of course, apart from a few urea enterprises with sufficient advance receipts, the market is still bearish. From the large agricultural dealers, we know that the pressure of urea is on the spot, factory prices have fallen blindly, and the enthusiasm of reserve has decreased. In addition, the weakness of terminal demand has once again hit the enthusiasm of large agricultural dealers and continue to follow suit. Looking at liquid ammonia, after a long vacation, the market gradually rebounded, and when urea was weak, the liquid ammonia Market panicked?

_urea market continues to be bearish, should be slow downward mainly. On the one hand, the most worrying thing is the adjustment of urea start-up rate. Some enterprises in Sichuan and Chongqing have shifted their production focus from liquid ammonia to urea. The local price of liquid ammonia has slightly fallen back. Some enterprises tend to produce urea slightly. In addition, the recovery of gas-head urea enterprises has resulted in the high start-up rate of urea market. According to the statistics of China Chemical Fertilizer Network, the start-up rate of urea industry as a whole has been maintained at present. At 61.45%, the daily output of urea is about 154,000 tons; however, in the near future, a few urea enterprises in Shandong and Ningxia will be overhauled or will be overhauled, which will relieve the shipment pressure of the next surrounding enterprises, but to a limited extent, that is to say, the start of urea enterprises will remain at a high level to a large extent. On the other hand, the demand of agriculture and industry is not good. The demand of agriculture in spring is sweeping away. There are still high-priced goods in the hands of large agricultural dealers to be digested in the early stage; the resistance of terminal farmers to high-priced urea, the adjustment of planting structure, the impact of low-priced fertilizer and other factors lead to the slow urea flow to the terminal; industry is still partially affected by recent safety inspection and environmental protection inspection. The production of industrial enterprises is limited, the starting rate is low, and the demand for urea is reduced to a certain extent. At the same time, compound fertilizer enterprises are forced to increase the cost pressure price, but the overall starting rate is still only about 50%. In addition, the price of ammonium chloride is lower than urea, which is favored by some compound fertilizer or mixed fertilizer enterprises, replacing part of urea. Finally, the original expectation of the label once again with our country's source of goods, it will not be repeated.

_From the above urea situation on the impact of liquid ammonia, we can know one or two. Without doubt, if the price of urea falls sharply, some factories will consider the benefits and tilt the production center to liquid ammonia, thus increasing the pressure of liquid ammonia Market delivery; and some ammonia enterprises start construction because of the impact of environmental protection, especially safety inspection, and then restrict the purchasing volume, such as some large traders in Jiangsu area. Purchase volume has decreased significantly, the supply of liquid ammonia is excessive, and the price has not rebounded since the downward pressure. However, from the current and short-term view of the liquid ammonia market, some regional liquid ammonia enterprises are also affected by environmental protection and safety checks to start a moderate reduction, coupled with the temporary transfer of production focus to urea by individual large factories, which promotes the price of peripheral liquid ammonia to rise.

_Short-term comprehensive impact of liquid ammonia trend of various factors, urea on its impact is not the only. Although from the start-up of liquid ammonia enterprises and the strength of safety inspection, there is still a small space for local liquid ammonia prices to explore; but the fall of urea prices is indeed one of the key factors that can not be ignored, so the next need to be vigilant against the negative impact of the fall of urea prices on the liquid ammonia market.

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