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After new year's day, the fertilizer market has not yet appeared the ideal state of "New Year's weather", which continues the previous pessimistic atmosphere. As a long-standing market for winter storage, the current situation of enterprises' delivery and dealers' willingness to stock up are slightly strengthened, but they have not yet reached the hot state of the final sprint before the festival. The compound fertilizer and water-soluble fertilizer on the side of finished fertilizer are similar in recent situation. Unexpectedly, the market of water-soluble fertilizer is also in a low ebb.
The overall weakness of fat market is attributed to the "ups and downs" of urea market, which makes it difficult to judge the trend of the future market, thus aggravating the stalemate and lag of the market. It is near the Spring Festival, local agricultural demand is coming to an end, industrial purchasing activity is weakening, and local environmental protection situation is severe in winter, with few domestic demand remaining; foreign market is favorable and lacking, the last urea bidding result in India is disappointing, because the possibility of urea price rise before the Festival is almost zero, so we want to take advantage of urea market to move forward Water soluble fertilizer is one of them.
First of all, the collective price of raw materials. The market price of water-soluble fertilizer is much higher than that of traditional fertilizer, and the profit space is relatively large. Generally, the slight adjustment of raw material price does not cause obvious fluctuation of the market price of water-soluble fertilizer, but recently some enterprises have correspondingly expanded the preferential range, that is to say, price reduction in disguised form. The first reason is that the nitrogen fertilizer market is weak. As mentioned above, there is no good support in short term, so it is difficult to reproduce The second reason is that the price of potassium dihydrogen phosphate has generally fallen, and the high-end quotations of some factories have disappeared. As the price of raw materials plunges, the cost benefits are insufficient, so water soluble fertilizer enterprises have to expand the preferential space.
Second, the peak season demand is low. Different from the traditional fertilizer, winter is often regarded as the peak season of water-soluble fertilizer demand, mainly due to the extensive cultivation of fruits and vegetables in some areas, such as northwest, North China and other places. In recent years, the field crop planting profit has decreased year by year. After the wide range of planting structure adjustment, the economic crop planting area has increased significantly, and the demand for water-soluble fertilizer has increased. However, local demand in this winter has not improved. The first reason is that the price of some kinds of fruits is not high this year, and the planting ability of fruit farmers is weakened; the second reason is that local natural disasters occur frequently, although the influence of greenhouse planting is not big, but Climate change to some extent affects the rhythm of agricultural activities.
Finally, the additional cost increases. At the same time, the change of additional cost makes the enterprise suffer from "pain". With the increasing pressure of environmental protection in winter, the production of many enterprises is often interrupted, which indirectly increases their production costs. In addition, recently, it has been heard that the railway freight in Southwest China is 20% higher than that in the past, and the phenomenon of automobile transportation overload occurs in many places, so the transportation cost of chemical fertilizer increases accordingly. While enterprises are reducing profits and seizing the market, they have to consider the freight increase The extra pressure brought by the price, originally brought by the market in the winter peak season, turned out to be "invisible".
To sum up, before the Spring Festival, the market of raw materials may be dominated by weakness, especially urea price. In addition to the advantages and disadvantages of raw materials, the problems faced by demand and supply cause the market of water-soluble fertilizer in winter stage to be very passive. Like compound fertilizer, it runs in a short-term stalemate.
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