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Urea Drama's New Protagonist Comes on the Stadium
Time:2019-05-15   Read:821second  

In mid-May, with the end of spring fertilizer market, the turnover situation was relatively weakened, and the promotion of summer fertilizer market was hindered, the overall atmosphere was slightly depressed. At present, the first round of high-nitrogen fertilizer distribution in Central Plains has been completed, and the enthusiasm of subsequent downstream picking up goods is not good. Although the price trend is still stable, many enterprises have adjusted the price strategy, the actual transaction price has been loosened, and the prices of other finished fertilizers are similar.

The current situation of the finished fertilizer market is partly caused by the raw material urea market. Recently, the price of urea has fallen mainly. The long-awaited international labeling has failed to boost the domestic urea market. However, the domestic market demand and supply situation are equally negative, urea "has to" leave the market ahead of schedule. However, the killing of urea dramas does not mean that there will be no bright spot in summer fertilizer market in the future. As a new type of fertilizer products, water-soluble fertilizer market can be regarded as a downwind.

First, high prices are stable. Compared with other fertilizers, the price of water-soluble fertilizer is not only at a higher level, but also relatively stable. If the price of raw materials does not fluctuate too much, the price of water-soluble fertilizer will not change easily. The reason is that the profit margin is larger than that of ordinary fertilizers, the pressure of raw materials cost is obviously much smaller, and the range of preferential trade is slightly wider, so repeated price adjustment is not significant. Price stability is also the embodiment of brand competitiveness. In today's increasingly fierce market competition, prominent brand effect is also a means to find a way out, especially when the new fertilizer is in the development stage.

Secondly, demand continues to release. In the past, the water-soluble fertilizer market had distinct off-peak season, and the demand of different regions had obvious differences between the north and the south. However, with the development of the market, water-soluble fertilizer broke the seasonality and regionality of demand. One reason was the change of downstream planting structure. Affected by the low price level of field crops, the planting area of cash crops increased significantly, and the demand of water-soluble fertilizer also increased. The effect of water-soluble fertilizer application is more obvious. At present, the traditional fertilizer market is chaotic, low-price goods and fake goods are rampant. In order to avoid unnecessary losses, the downstream prefers to purchase new fertilizers at high prices instead of traditional fertilizers to ensure the fertilization effect.

Finally, the supply is gradually improving. Since the beginning of last year, there has been a wave of environmental protection inspection throughout the country. So far, countless unqualified productivity has been eliminated in the fertilizer industry. In addition, after the "Xiangshui" incident in Jiangsu at the beginning of this year, large-scale safety inspections began one after another, which further ensured the standardized operation of fertilizer production enterprises; in addition, in recent years, the comprehensive strategy of "water and fertilizer integration" in China has been carried out. Implemented, the development of water-soluble fertilizer market has played a vital guiding role, which also makes the upstream water-soluble fertilizer supply gradually improved. Therefore, the good balance between supply and demand has helped the water-soluble fertilizer market to develop better.

To sum up, the fluctuation of urea market does have a certain impact on the overall fertilizer market. The downstream prudence is getting stronger. Before the next round of summer fertilizer replenishment activities, the price of traditional compound fertilizer may be narrowly adjusted, while the price of water-soluble fertilizer is mainly stable.

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