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Near the national day, the fertilizer market seems to be catering to the festive atmosphere and bustling. In autumn, the compound fertilizer comes to the final stage, and the terminal markets are started one by one, and downstream dealers are also making calculations for the final replenishment. On the one hand, the end of autumn is coming, and the other is winter storage. Some compound fertilizer enterprises are busy. However, at this time, the raw materials are even more icing on the cake, and the market fluctuation is more frequent. The recent small drop of urea price and the strong rise of potassium chloride market really bring more suspense to the future market.
As the sole supporter of the domestic urea market, it is rumored that India's bidding has not appeared. Although it is said that India is likely to issue the latest urea bidding before China's National Day holiday, the rumor fails to meet the reality in the end. In the case of relatively weak domestic industrial and agricultural demand, urea plants can only choose rational price adjustment for the next printing mark To be prepared, as long as the urea price drops, no matter how large the space is, it will be bad for the compound fertilizer market. In contrast, the price of potassium chloride will be strongly reversed, with port supply taking the lead and domestic factories following up. The price rise has been settled down and the possibility of falling back in the short term is limited. Urea and potash fertilizer rise, a good eventful autumn, autumn compound fertilizer market will not have a big move, then the judgment of the winter storage market has become the biggest problem, compound fertilizer enterprises have to be cautious.
First of all, compared with the autumn market, changes in raw material costs. Since the spring, the price of compound fertilizer has been at a low level compared with that of last year. The important reason is that the cost is wrong. In other words, if the cost of raw materials does not change significantly at the beginning of the winter storage market, the price of winter storage of compound fertilizer may continue the weak situation of previous quarters, and the so-called low price explosives will lead the market opening again. There is also another possibility that the printing label will be released immediately, The price and quantity, as well as the shipping date, are relatively good. The domestic urea price has taken advantage of the situation, and with the high price of potassium chloride, the cost of raw materials has risen to a higher level, and the winter storage market of compound fertilizer may turn over. However, we should rationally look at the future market and be cautious and optimistic.
Secondly, the demand for winter storage is decreasing year by year. Is it true or not? When it comes to winter storage, many market participants are pessimistic and say that not only is the risk increasing, but also the demand is becoming less and less. There is no big difference between doing and not doing, and it is acceptable to purchase with sales. Combined with the actual situation in recent years, this is true of the winter storage market. Since the autumn market has been promoted, the sales volume of most enterprises has basically taken shape. Some enterprises said that the overall sales volume did not decrease but increased this year. Although it is not a common phenomenon, it may explain a problem. After the grain price reaches a high level, the popularity of agricultural planting has increased, which makes the demand for chemical fertilizer increase to a certain extent Quantity. The harvest of autumn grain is imminent, and it is believed that farmers' enthusiasm for the next ploughing will be greatly improved this year.
Finally, supply exceeds demand and prices are chaotic. The fertilizer market has overcapacity, especially the supply of compound fertilizer is obviously too much, and it is heard that the production capacity of some regions has increased this year, which makes the winter storage market with poor demand even worse. Supply exceeds demand. If enterprises want to get a share of winter storage, they have to try their best to reduce profits, resulting in uneven prices of winter storage and frequent low prices. At present, the winter storage market in Northeast China is in the initial stage, and the price is not fully clear. Only a few enterprises issue winter storage quotation, and the level is relatively low, which also lays a certain tone for future price development.
In conclusion, the trend of raw material market will become an important wind vane for winter storage market of compound fertilizer. It is expected that the winter storage market will be finally clear after the national phosphate and compound fertilizer meeting is held in mid and late October.
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