At the beginning of 2020, the calendar opened a new chapter, but the fertilizer market is still unable to get rid of the downturn. The so-called "Shu Road is difficult, and it is difficult to go to the blue sky". In particular, the compound fertilizer market has almost entered a stalemate stage, and the downstream delivery progress is very slow, while the compound fertilizer enterprises are also quiet. Recently, there is news of the increase in transport prices, is it to add another cold atmosphere to the original frozen winter storage market?

First, the raw material market support is low. After new year's day, the overall urea market is still stable and weak. The prices in some regions are slightly reduced, with a range of 10-20 yuan / ton. The rise and fall of urea can cause fluctuations in the fertilizer industry every time. However, the recent fluctuation range is not large, with small adjustments up and down, just like the long experience of a small earthquake, the downstream has not been taken seriously. However, the prices of phosphate fertilizer and potash fertilizer are still not significantly improved, right In terms of the cost support of compound fertilizer products, the support of raw materials is very limited.

Secondly, the transportation cost increases, and the downstream delivery speed is blocked. In December 2019, the news that automobile transportation and ship transportation are restricted has been spread, such as container frost and weight restriction. Since the beginning of the new year 2020, the state has issued some new regulations on transportation, mainly aiming at dangerous chemicals, and many provinces strictly check the problem of overload. For the fertilizer industry, the transportation speed of chemical fertilizer products has slowed down significantly in the near future, and the increase of transportation price is directly transferred to the next level As for the dealers who are not willing to take delivery in winter, the enthusiasm for taking delivery is obviously reduced.

Thirdly, only 30% of Northeast China's winter storage has progressed. How to release the remaining space in the later period? According to the recent incomplete survey of China fertilizer network, the amount of fertilizer preparation in the lower reaches of Northeast China is significantly reduced compared with that in previous years, especially in Heilongjiang and Inner Mongolia, where there are many people waiting to see, while in Jilin and Liaoning, the progress is slightly better, but it is far less than that in previous years. On the whole, the progress of winter storage in Northeast China is only about 30%, and there is still a lot of demand space to be released in the later period, but Compound fertilizer enterprises can not be blindly optimistic, after all, there are not a few dealers in the fertilizer industry this year.
Finally, the winter storage market of chemical fertilizer has not improved, and the downstream demand has not started in large areas. Although dealers in some regions began to take delivery of goods, most of the orders are waiting to be issued in advance, with fewer new orders. In the short term, the market of compound fertilizer has not come out of the trough, while in the long term, the market of compound fertilizer has a long way to go.