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With strong cost support, how can the market of compound fertilizer go after the Spring Festival?

  • Recently, the overall market of raw materials has been relatively strong. The high price of urea has fluctuated, and the market of phosphate fertilizer and potassium fertilizer has remained high, which has provided strong support for the price of compound fertilizer, and the price of compound fertilizer has also increased slightly. Compound fertilizer enterprises often execute early-stage orders, and some manufacturers still have the idea of continuing to raise the price of compound fertilizer, so watch carefully in the downstream.

    In terms of price, the wholesale price of 45% sulfur based compound fertilizer in Shandong is 3100-3200 yuan / ton, and the price of 45% chlorine based compound fertilizer is 2850-3050 yuan / ton; The wholesale price of 45% chlorine based compound fertilizer in Hubei is about 2850 yuan / ton; In Yunnan Guizhou region, the price of 45% sulfur based compound fertilizer is 3050-3150 yuan / ton, and the price of 45% chlorine based compound fertilizer is 2850-3050 yuan / ton; The reference price of 45% sulfur based compound fertilizer in Henan is 3050-3150 yuan / ton.

    Stronger cost

    Last week, the urea market continued to be strong and stable. The person in charge of a urea enterprise in Henan said that at present, the demand for urea still exists. After a long period of downturn in the construction of compound fertilizer manufacturers, they have recently maintained a high start-up rate, and the purchase demand for urea has increased. At present, the daily output of domestic urea has rebounded to 152100 tons, with an operating rate of about 67.17%. The operating rate of coal enterprises has slightly decreased, while that of gas enterprises has increased. The urea market basically maintained a balance between supply and demand. It is expected that the market will continue to maintain a narrow consolidation trend before the year.

    The price of potassium chloride has been consolidated. The price is still on the rise, and the supply of goods is still tight, especially in the northeast. It is understood that with the promotion of winter storage, the demand in Northeast China has warmed up. Compound fertilizer enterprises mainly purchase potash fertilizer on demand, but the local supply is insufficient, resulting in the rapid rise in the price of large particle red potassium. In terms of domestic potassium, the operating rate of manufacturers' devices is still at a low level. After the recent price increase of Qinghai Salt Lake potassium chloride, no new price policy has been issued, and the device operates normally, mainly implementing the early orders. According to the data, the arrival price of 60% white potassium in Qinghai is about 3900~3950 yuan / ton.

    In 2021, driven by the flooding of global liquidity, the sharp rise in international fertilizer prices, as well as the tight domestic energy supply, the rise in raw material prices and other factors, the price of fertilizer rose sharply. Jinxiandong, director of the Policy Research Office of the national development and Reform Commission, said that at present, the peak of fertilizer use in autumn and winter has passed, and the price of urea has fallen slightly, but it is still at a high level in the same period of nearly 10 years, and the prices of diammonium phosphate, potassium chloride and ternary compound fertilizer have also increased significantly year on year. Considering the difficulty of further substantial reduction of production costs, it is expected that the price of fertilizer for spring ploughing may still be high.

    Sufficient supply of goods

    Zhangchuanbin, general manager of Rizhao tilling Agricultural Development Co., Ltd., told the reporter: "recently, the price of compound fertilizer has increased slightly, and the market transaction is relatively cold. The enthusiasm for winter storage is not high, and compared with the same period in previous years, the winter storage has declined seriously. Even so, some manufacturers are still planning to increase the price. The main reason is that the raw material market has been in an upward trend, and the fertilizer market price is difficult to fall sharply in the short term, and even some raw materials still have the possibility of rising, so some manufacturers have to increase the price." but some manufacturers started to think a lot because of the poor delivery of high priced fertilizer. According to Zhang Chuanbin, due to the relatively low price of crops and the continuous high price of chemical fertilizer, farmers are motivated to buy fertilizer.It is not high. Even if it is rigid, it will choose cheap fertilizer, Some compound fertilizer manufacturers seized the farmers' psychology, produced low-content formulas, reduced production costs, seized the market with low-cost products, and won the favor of farmers. But in this way, the application of low-level chemical fertilizers will lead to crop reduction and other problems, which will bring greater losses to farmers. Therefore, I would like to appeal to the relevant departments to pay attention to the healthy and orderly development of the fertilizer market and investigate the fake fertilizer to prevent farmers from being deceived and causing irreparable losses. We will ensure that farmers increase production and income, and return a pure land to the agricultural means of

    production market.

    For the future, industry insiders analyzed that with the gradual promotion of winter storage market, the overall operating rate of compound fertilizer enterprises continued to rise slightly. The support of raw materials is strong, and the cost of compound fertilizer is strong. At this stage, dealers in some regions have strengthened their willingness to pick up the goods, and enterprises mainly deliver winter wheat topdressing. Due to the relatively small inventory of most dealers in the early stage, there is still a lot of replenishment space. It is expected that the replenishment demand after the holiday will be relatively concentrated, which will play a certain supporting role in the compound fertilizer market.

    At the same time, zhangchuanbin also said that at this stage, the supply of high-priced brands is sufficient, and the supply of low-priced products is relatively tight. Large compound fertilizer manufacturers are actively producing and maintaining a high operating rate. During the Spring Festival, a few enterprises plan to stop for a few days, and production will resume soon after the festival to fully ensure the supply of goods in the spring market. In general, the current supply of agricultural materials can meet the demand for fertilizer for spring farming.