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In the twinkling of an eye, when we came to the "May Day" holiday, the Chinese fertilizer market entered the summer stage. The early ended spring market is called "mixed happiness and sorrow". Most of the fertilizer prices have risen compared with the same period of previous years. However, the trading conditions are not based on the temperature, and the whole process is short and in a hurry. Due to the fuzzy market interval between spring and summer, the weakness of the end market in spring has to some extent restrained the release of fertilizer demand in summer.
Urea price reduction can not be effectively "stopped", so not only the high nitrogen fertilizer market will be embarrassed, but also the water-soluble fertilizer market will be affected.
Firstly, the cost of raw materials fluctuates. The cost of raw materials for water-soluble fertilizer is significantly higher than that of traditional compound fertilizer. Generally, the range and frequency of cost change are relatively limited. However, in recent years, the price of raw materials affecting the price of water-soluble fertilizer fluctuates continuously. Taking potassium dihydrogen phosphate as an example, the factory reference price in Sichuan's main production areas was close to 7000 yuan / ton at the beginning of this month. The price of raw materials yellow phosphorus rebounded and the supply of raw materials was tight, leading to the market recovery of potassium dihydrogen phosphate, or even Some enterprises have already restricted the receipt of orders. Not long ago, the price of potassium dihydrogen phosphate also dropped sharply due to the change of the yellow phosphorus market, with a partial decrease of up to 500 yuan / ton. It can be seen that only one kind of raw material shows a very different market fluctuation from the past, so the price of water-soluble fertilizer is also unnecessarily "implicated", and it is more difficult for enterprises to handle preferential policies.
Secondly, other cost changes. In addition to the cost of raw materials, the cost of other aspects should not be underestimated. Recently, the most eye-catching news is related to the national highway recovery toll. According to the Ministry of transport, with the consent of the State Council, the toll road recovery toll approved by law will be charged from 0:00 on May 6, 2020. Previously, in order to coordinate epidemic prevention and control and economic and social development, toll roads across the country were exempted from vehicle tolls from 0:00 on February 17, 2020. The balance of free time is insufficient, and the freight of automobile transportation is facing an overall increase again, which is not a small test for water-soluble fertilizer enterprises. The reason is that water-soluble fertilizer is mainly transported by automobile, and the transportation distance is relatively far, which to a certain extent increases the cost pressure of enterprises.
finally, the market supply increases. It is self-evident that the overall overcapacity of traditional fertilizer is serious. Nowadays, the supply of water-soluble fertilizer is also facing the problem of substantial increase, which directly intensifies the market competition. The first reason is that there are a large number of small and medium-sized water-soluble fertilizer enterprises. In order to pursue benefits, the product quality is questionable, but the price is significantly lower than the mainstream brand price level, and the terminal acceptance is gradually improved Because the traditional fertilizer enterprises have embarked on the road of transformation, in terms of compound fertilizer enterprises, they can only be eliminated by the market blindly, so they have to do articles on the new type of fertilizer. Therefore, the increase in the number of upstream supply also reminds the current market not to rush forward.
as an important part of market promotion, urea aftermarket affects the market trend of the whole market. At present, it is unlikely that urea prices will.
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