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Transportation blocked compound fertilizer speculation heart?
Time:2020-02-07   Read:717second  

As of 24:00 on February 5, 31 provinces (autonomous regions, municipalities directly under the central government) and Xinjiang production and Construction Corps have reported 28018 confirmed cases, 1153 cured and discharged cases, 26302 isolated cases (3859 severe cases), 563 dead cases and 24702 suspected cases. There were 282813 close contacts and 186354 close contacts still under medical observation.

The epidemic situation is rampant, and the whole country is united in fighting the epidemic. The impact of the epidemic has been large enough, and it can be said that it has penetrated into all walks of life. Taking the fertilizer industry as an example, the most critical transport link has nearly collapsed, and even partially paralyzed. At this stage, it is at the beginning of the start-up of the fertilizer market in spring, and the transportation interruption has greatly hindered the normal promotion of the market.

As a compound fertilizer with large demand in spring, the current market is still in the low state before the Spring Festival, and both upstream and downstream are facing many difficulties. Looking for hope in adversity, the voice of tight supply caused by poor delivery has become stronger and stronger in recent days, that is to say, the price of compound fertilizer in some regions may rise, but can it really be realized?

First of all, good raw materials are hard to find. The price of compound fertilizer largely depends on the raw material market, however, the prospect of its recovery in a short time is not optimistic. The urea market is weak, industrial and agricultural demand release is slow under the influence of the epidemic, many transportation is blocked, and short-term price is weak; the main production area of Monoammonium is in a state of suspension, and most enterprises are still uncertain about the time to resume normal operation; the international market of potassium chloride is good and limited, and the domestic market is difficult to reverse.
Secondly, demand is not well started. Generally speaking, after the Spring Festival, the compound fertilizer market will be in the critical period of cultivating and preparing fertilizer for the Spring Festival. However, the current situation is relatively special. On the one hand, the epidemic is rampant, the multi land exchange and investment are basically stagnant, and the market is delayed; on the other hand, the multi land spring farming in the north is concentrated around the end of April, which is a long way from the real grass-roots picking up season. Some terminal markets are started or delayed correspondingly, which is a certain way The degree restricts the advance of compound fertilizer market in spring.
Finally, the industry as a whole is bleak. With the spread of the epidemic situation, the fertilizer market has suffered heavy losses. The most fatal one is the transportation problem. The automobile transportation is almost "annihilated", and the stevedores are also very hard to find. Even if there is a little demand from downstream customers, there is no circulation of goods, and they can only wait for the improvement of transportation conditions. In addition, the various fertilizer markets are weak. As a result, the overall situation is bleak Will continue.

To sum up, there are rumors in recent years that the price of local compound fertilizer may be adjusted appropriately due to transportation obstruction and supply shortage. However, combined with the above factors, the expectation of price increase of compound fertilizer in the short term is relatively small.

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