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When will the "rainy days" of urea market clear up
Time:2019-05-24   Read:743second  

To say that the urea market is in a low-pressure state, in fact, more than that. In fact, it is "rainy and rainy day after day". First, it lacks self-support, and then, it is the constant impact of the falling price of liquid ammonia. At present, the domestic urea market is in a low state, and the price is down. The local part is still tentatively scheduled to be collected. Even though some enterprises have planned maintenance or temporary failure inspection, they have failed to bring any hope of stopping the market. The amount of fertilizer used in the distribution of "Tucao" terminal of large agricultural materials has been reduced, and the time for preparing fertilizer has been postponed. There is no market at the grassroots level. When can the continuous rainy and cloudy weather clear up is the focus of the industry.

_. Urea enterprises have a high start-up rate, which is difficult to bring effective support to the weak market. Recently, a few urea enterprises in China have entered the short-term rotational maintenance stage, which mostly concentrates on a few enterprises in Shandong and Hebei. In addition, there are some short-term favorable phenomena brought about by temporary failure shutdown of individual factories. However, this is not enough to alleviate the overall situation of excessive supply, and there are still some maintenance enterprises resuming production successively. More than 60% of them start work, about 158,000 tons a day. The output makes the manufacturer nervous. Moreover, the price of liquid ammonia has not yet fallen to the bottom of the valley. The price of liquid ammonia in North China and East China has almost fallen by 100-200 yuan/ton. For example, the reference price of main acceptance transaction of liquid ammonia in Shijiazhuang area of Hebei Province has fallen to 350 yuan/ton to 2820 yuan/ton since the beginning of Zhou, 150-300 yuan/ton to 2600-2960 yuan/ton in northern Shandong Province and 150-180 yuan/ton to 2820 yuan/ton in Lianghu area. About 2750-2800 yuan/ton, factories are suffering from the pressure of liquid ammonia delivery and safety reserve considerations. Some enterprises have the idea of transferring the production focus from liquid ammonia to urea. At that time, the supply of urea will increase to a certain extent without excluding the supply of urea, and the sales pressure will increase with the increase of urea supply.

There is no "bottom" in dealers at all levels because of the lack of green and yellow demand. At the end of May, urea producers and traders are still playing games with each other, and the result of the game is that the factory keeps compromising and the price keeps falling, which encourages TRADERS'psychology of buying and not buying and falling, and the wait-and-see mood in the fertilizer market is strong. In addition, some large agricultural investors in Northwest China feedback that the high-priced urea reserve has not yet been sold out, and this year's inventory is not complete. It is much higher than the same period in previous years. Others indicate that the grass-roots planting structure has been adjusted. The decrease of field crops or the land reform has led to a significant reduction in fertilizer use. Urea and other fertilizers are on the decline. The enthusiasm of grass-roots fertilizer preparation is not high, and the reserve mentality of distributors has also changed. After agricultural hopelessness, looking back at the demand for urea in industrial compound fertilizers and power plants, the sales progress of compound fertilizer enterprises is slow. Under the multiple pressures of cost, environmental protection and safety inspection, the overall industry start-up rate has dropped to about 50%, and the purchase of raw materials has decreased. It is known that the demand of power plants or plywood factories is mainly stable for the time being. It is difficult to inject positive factors into the market only from the demand point of view, so stopping the decline will inevitably need to wait.

Finally, in addition to urea's own supply and demand dominance, such as excessive supply, difficult to start work at a time to reduce demand is light, traders are mainly on the lookout; the current liquid ammonia moves also affect the urea market trend, and this impact is short-term bullish. It is expected that urea will be weak for at least May in the short term, with no chance of rebound, but only in June.

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