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The price of urea dropped at a bad time.
Time:2019-07-17   Read:949second  

Feicheng's recent market is as changeable as the weather. At the beginning of Zhou Dynasty, we heard that urea prices in Shandong and Lianghe declined collectively, without warning. Although the decline was within the acceptable range, the urea market in the following period was not favored when the domestic demand for agriculture was gradually light and the international market was difficult to boost. If the decline lasted for a long time, the consequences would be unimaginable.

At present, the receipt of compound fertilizer in autumn has been carried out in a round. In the early stage, the enterprises mainly pay in advance at low prices, such as time-limited concessions, rebates, explosives, etc. The interest of downstream payment is still acceptable. However, after the abolition of the above concessions, the enterprises pay more interest, keep the bottom, and the market is in a stalemate for a time. At present, the fall of urea price will not only affect the trend of fertilizer price in autumn, but also have a negative effect on the release of downstream demand. However, the water-soluble fertilizer market on the other side seems not to be affected by this, and the trading atmosphere is still hot.

First, prices are relatively stable. Compared with the traditional compound fertilizer, the price of water-soluble fertilizer is at a relatively high level, and the price adjustment of enterprises with advantages is not obvious. Once there is a big change in the raw material end, preferential policies can be used to adjust their own and market conditions. The first reason is that the price of water-soluble fertilizer raw materials is also at a high level and changes. The reason is that the profit margin of water-soluble fertilizer is higher than that of traditional compound fertilizer, and the narrow range of raw material cost does not affect the price trend of water-soluble fertilizer, only the profit margin shrinks, and the operational risk is greatly reduced.

Secondly, demand is relatively sustained. Different regions have different climates and planting habits. As far as compound fertilizer is concerned, although the low-peak season is not obvious, there is a certain time gap in demand in most areas. With the development of water-soluble fertilizer market in recent years, the demand for water-soluble fertilizer has changed to normal downstream. The first reason is the large-scale adjustment of regional planting structure, the low profit of traditional field crop planting, and the opening up of new paths at the grass-roots level, which enlarges the planting area of cash crops and increases the demand for water-soluble fertilizer. The second reason is that the rational use of water-soluble fertilizer can reduce water sources. Waste and fertilizer loss, more effectively promote crop growth, achieve energy conservation and emission reduction.

Finally, the market is relatively stable. The disorder of traditional compound fertilizer market has been aggravated year by year. For example, the market order has been disturbed by the false and the true, and the second-best. There are certain pressures on enterprises and distributors. In addition to the lack of downstream purchasing power, the frequent explosion of alternative products has also had a certain impact on the complex fertilizer market in various seasons. Compared with traditional compound fertilizers, water-soluble fertilizers not only have faster fertilizer efficiency, but also are easier for enterprises and distributors to operate, and also more in line with the general needs of downstream. Stable market, extensive demand, water-soluble fertilizer on the stage.

In summary, supported by downstream demand and market climate, the water-soluble fertilizer market will remain relatively stable in the short term. With the gradual weakening of urea market, water-soluble fertilizer enterprises will adjust the preferential margin in the later period.

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