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Urea market becomes a mystery, fertilizer market heats up slowly in summer
Time:2021-04-15   Read:758second  

Recently, the demand for compound fertilizer in spring in some areas has been eliminated one after another. In addition to the centralized procurement of grass-roots farmers, there is basically no large-scale replenishment plan at the dealer level, and the remaining small gap will be supplemented by the surrounding sources. The spring market is coming to an end, and the demand for corn fertilizer in summer is gradually releasing. Compared with the spring stage, the situation of summer fertilizer is similar. Up to now, some dealers in some regions are still in a wait-and-see state, and the overall purchasing and marketing atmosphere is warming slowly.

In summer, such as Shandong, Lianghe and other places, the demand for compound fertilizer is mainly high nitrogen corn fertilizer, and its price trend is closely related to the urea market. It happens that the urea market is unpredictable in the near future, and the price fluctuation is uncertain. Although the mainstream quotation in various regions does not fluctuate much at present, the follow-up market is still elusive. Dealers worry that the next price reduction of urea may affect high nitrogen fertilizer Therefore, the wait-and-see sentiment has not been reduced, but with the approach of the season, the trading situation of some markets has improved this week.

First, there is support for costs. Apart from urea, the market of phosphorus and potash fertilizer is still high, among which the quotation of monoammonium phosphate enterprises is generally strong, and the overall purchase and sales are weak and stable, but considering that there is still a surplus of orders to be issued, the collective quotation of enterprises is mainly strong, and it is unlikely to reduce the quotation in the short term; in April, the price of potassium chloride in Salt Lake rose sharply, and the potash fertilizer price reached by China earlier after the signing of the potash hypertrophy contract in India The follow-up of the big contract is not clear, the supply of potassium chloride at the port is tight, and the price rises slowly. As of now, the cost of pure nitrogen fertilizer is still around RMB 1845-30 per ton.

Secondly, the downstream price is low. At present, the mainstream price of high nitrogen fertilizer in summer is basically clear, and there is no downward trend in the short term. The enterprises are waiting to stabilize the price. However, the downstream dealers do not buy it all the time. The wholesale and retail prices at the grassroots level are on the low side, and the supply has not been fully digested in the early stage. The ex factory price is quite different from the current level. I heard that the wholesale price of 40% high nitrogen compound fertilizer market in some areas is only 2300 yuan /If you take the goods at a high price, it is easy to form an upside down phenomenon. Therefore, before the early digestion of the source of goods, the dealers dare not easily replenish a large number of goods.

Finally, the enterprise is under pressure to reduce the load. After entering April, the demand for compound fertilizer decreased in spring, and the overall operating rate of the enterprise decreased compared with the previous period. Most of the reasons were to take the initiative to reduce the load. The first reason was that the downstream delivery speed was slow, the actual fertilizer use time of corn fertilizer in summer was near the end of May, and the sales situation of dealers was general. As a result, there was not a large number of pre paid goods, and the inventory formed a certain backlog. The second reason was the low price of raw materials The market intermission in spring and summer is short, the operating rate of enterprises has been maintained at a high level, and the raw material inventory in the early stage is gradually digested. If we continue to replenish the warehouse at a high price, the price of compound fertilizer may continue to rise. Therefore, we have to reduce the load and wait and see to stabilize the price.

To sum up, the raw material market has not fluctuated significantly, and the corn fertilizer market is stable in summer. It is expected that the demand in some regions will be released in succession after late April.

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