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The urea joke was a bit big this time.
Time:2019-05-22   Read:718second  

In late May, the smoke of summer fertilizer market gradually faded, and it seems that the end will be dull, but the replenishment market in some areas has not yet been released, and the downstream wait-and-see mood is still strong. At present, the planting season of summer crops such as rice and maize is about a month away. Generally speaking, distributors should have finished the shop and replenished the warehouse one after another. Who knows that this summer's market is similar to the earlier stage, and the lag is very obvious.

Taking finished fertilizer as an example, in addition to demand, the change of raw material market will also have a great impact on its market. Recent fluctuations in urea have brought suspense to the future market of manufactured fertilizers, and downstream fertilizers have to be treated with caution. At the present stage, urea is mainly vulnerable, although temporary maintenance of some factories will reduce the supply, but the overall market turnover of new orders is not good, the short-term trend is not optimistic, accordingly, the compound fertilizer market is also weak and stable, water-soluble fertilizer market also fluctuates.

First of all, transaction preferences have increased. Compared with compound fertilizer, water-soluble fertilizer has a low price adjustment frequency and limited negotiation space. Recently, some enterprises said that the preferential range of new single transaction has been relaxed on the original basis. First, the raw material cost has been reduced, and the downstream resistance to high prices has emerged. Only by increasing preferential prices, can we not only ensure the stability of the quotation from the factory, but also mobilize the initiative to take goods. Second, the overall atmosphere of Feicheng is low, and the prices of all kinds of fertilizers are low. The price of water-soluble fertilizers is much higher than that of other manufactured fertilizers. Nowadays, the pressure of enterprises has doubled. It is not easy to achieve a large price adjustment, so it is only possible to make an article on the transaction preferences.

Secondly, local demand decreases. In recent years, water-soluble fertilizer products are more popular in all seasons, and the demand is still acceptable. The main reason is the change of planting structure and the implementation of the strategy of "water-fertilizer integration". After the end of May, the demand for local water-soluble fertilizers has decreased. First, the spring and summer seasons alternate, the gap period of demand and the emergence of "small off season" of fertilizer use. Second, as mentioned above, the market of raw materials is weakening, and the price of water-soluble fertilizers is likely to decline further. The downstream also uses this to see if the price of water-soluble fertilizers will decrease accordingly. Therefore, for these two reasons, local areas are facing a decline in the price of water-soluble fertilizers. It is the weakening of water-soluble fat demand that may exist in the short term.

Finally, market chaos is frequent. Nowadays, there is more and more chaos in the fertilizer market, not only in the traditional fertilizer market, but also in the new fertilizer market. The disorder of water-soluble fertilizer industry is mainly manifested in the complicated brand, the rampant fake goods and the confusion of price. Of course, with the development and perfection of the industry, it has matured a lot. However, the disorder still exists. The first reason is that the low price level of crops and the limited purchasing ability of farmers provide "opportunities" for low prices and fake goods; the second reason is that the profit of water-soluble fertilizer is relatively high and the quality of raw materials. The phenomenon of counterfeiting and selling counterfeits increases with the uneven distribution of illegal traders in order to gain more benefits. Therefore, as far as water-soluble fertilizer itself is concerned, there is still a long way to go in the future.

In summary, we believe that the rise and fall of urea has become common, but the fluctuation of urea market does play a vital role in the trend of manure. Recently, urea prices have continued to fall, some of which even exceed expectations, to a certain extent, aggravated the pessimistic atmosphere of the overall fertilizer market.

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