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Whether the urea quotation is raised again or not is it worrying to take the goods?
Time:2019-04-15   Read:694second  

Although the overall urea quotation declined slightly in April, the urea quotation rebounded again shortly after the Qingming Dynasty. At this stage, the prices of individual large urea plants in Shandong Province have returned to about 2000 yuan (ton price, the same below). The prices of urea in Linyi area are more and more refreshing. It is known that the urea prices of compound fertilizer enterprises in Linyi area have risen to 2070-210 at this stage. 0 yuan, although the turnover is relatively small, but the willingness of enterprises to bid is relatively strong; the mainstream urea factory quotation in Henan province is 1990-2040 yuan, the industrial demand still exists, the market demand is slightly weakened, but driven by the demand of peripheral plywood factories, the quotation appropriately increased slightly; the mainstream urea factory quotation in Shanxi province is 1960 yuan, the mainstream large particle factory quotation is about 1990 yuan, and some enterprises are now hands-on. The pending orders can last until the end of this month. Although the quotation remains stable for the time being, there is still room for discussion. This price adjustment really makes some traders "unclear ideas", because there is still a certain demand gap in the later period. At this stage, the author worries about whether to take the goods again. At this stage, whether urea price can be purchased and the industry understands that although urea price increases at this stage, procurement still needs to be cautious. The main points are as follows:

_The industry believes that the fluctuation of urea in the later period mainly depends on the direction of supply-demand relationship, the adequacy of raw material cost support, because the price of coal and natural gas is temporarily stable, the cost can at least maintain relative stability, that is, the situation of supply and demand in the later period.

Firstly, the supply side. Due to the gradual warming of temperature, enterprises in order to reduce the cost-sharing of production, according to the usual practice, in late spring and after entering summer, urea as a whole started multi-level operation. At this stage, the overall daily output of urea has reached 151,000 tons, while the rest of the shutdown and production restriction enterprises still have plans to recover or increase in the near future. In other words, excluding the reduction due to faults, the overall supply of urea appears in the later period. There is a certain increase in supply pressure in the later period.

Secondly, the demand side. The overall performance of the export market is poor, because of the wide gap between domestic and foreign prices, the probability of China urea exporting a large amount of urea in the short term is low. If we want to release domestic supply pressure through export, it is unlikely. However, the domestic spring agricultural market is near the end, and only a few regions still have demand. Although the summer fertilizer market has a large demand for nitrogen fertilizer, it is still early on one hand. On the other hand, a part of the downstream has been purchased in advance, and the actual hard demand in the market is not too much, so the possibility of a sharp increase in urea in the near future is not great.

In addition, the overall price of urea is still on the high side at the present stage. Some downstream distributors said that although there is demand in the later stage, the price has been high, and the risk of gambling is too high and cautious.

In summary, although urea prices rebounded and high nitrogen fertilizer consumption was high in summer, the actual purchasing volume of urea in some distributors was not too much due to the above reasons.

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