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Should the winter storage quotation of Northeast China be paid downstream in July?
Time:2019-07-29   Read:957second  

July 2019 is an extraordinary month, the southern high temperature, while in the northern part of Harbin where Xiaobian is situated, there are continuous rains and heavy rains. There are not many sunny days throughout July. Recently, there are frequent rainstorms, many vehicles are flooded. Of course, there are geological disasters in other areas. 2019 is doomed to be extraordinary. A year. For chemical fertilizer market, the market changes frequently, emergencies occur frequently, urea diammonium compound fertilizer in July has a very "eye-catching" performance.

First of all, urea prices fell below 1700, a rebound is possible? At the beginning of July, India's tender information was released, bringing a glimmer of hope to the long-term stable urea market. Some people even expected that this Indian tender could promote the domestic urea price to rise sharply. However, after half a month's verification, the result was very attractive. The low export price has discouraged the domestic export enthusiasm, together with domestic industry and agriculture. The low demand and the high daily production of urea in China have forced urea prices to continue. In late July, urea prices fell sharply, reaching 70 yuan/ton at a time, while the low prices in Xinjiang and Inner Mongolia plummeted to 1610 yuan/ton. Some people wonder whether such a low price has reached the bottom of the rebound and is slow and near. In terms of the healthy environment of the period, there is a possibility of rebound only when demand, start-up and prices overlap in all respects.

Secondly, diammonium fell by nearly 200 yuan per ton, and the export market was bleak. Generally speaking, the second half of the year is the world of phosphorus fertilizer, because the demand of Wheat Fertilizer for phosphorus fertilizer is still considerable, but this year's market of diammonium makes people stunned. From the beginning of July to now, 64% of diammonium in Hubei province mainstream factory quotation is about 2500-2550 yuan/ton, but in less than a month, the price falls to 2300-2400 yuan./ The main reason is the low export market. At present, the domestic FOB price of diammonium is US$340, but the transaction is difficult. The supply of diammonium turns to domestic, but the demand for fertilizer in autumn is still early, so the goods are not optimistic.

Thirdly, in July, the compound fertilizer enterprises kicked out the winter storage quotation, and the advance quotation was too surprising. In the period of preparing autumn fertilizer actively in the Central Plains, the demand for corn fertilizer in the first half of the year in Northeast China has just come to an end, and most enterprises have entered the vacation period. Just when people turn their eyes to the Central Plains, the compound fertilizer enterprises in Northeast China kick out the price of explosives stored in winter, once again pull their eyes back to the Northeast, Jilin recovers individually. Hefei enterprise exploded 45% sulfur base (12:18:15) to buy out the factory quotation at about 2150 yuan/ton, three months ahead of previous years, so is such a low price accepted by the downstream? Xiaobian interviewed some distributors in Northeast China, reflecting a relatively light reflection. The first reason is that there is still a year to go before fertilizer is used. The phenomena of long-term accumulation of powders and solidification of fertilizers will affect sales. The second reason is that there is no interest accrual and other preferential policies, and long-term loan interest has not been calculated to have too great price advantage; the third reason is that long-term loan interest has not been calculated. In recent years, prices have increased in off-season, declined in peak season, and there is a serious psychological conflict between the downstream and the downstream. In a word, in this period, Northeast enterprises kicked out the outage price of winter storage, and the downstream expectation value is not high.

In a word, July is a calm month. There are many changes and emergencies in the market. Only by paying attention to the market in time can we keep up with the current changes in the fertilizer market. We hope that the fertilizer industry will perform better in August.

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