Due to the comprehensive balance of nitrogen, phosphorus and potassium nutrition and convenient application, the compound fertilizer is loved by farmers. The amount of fertilizer is relatively large during autumn and winter. In some places, it even becomes a main fertilizer for autumn and winter crops. At present, fertilizer compound fertilizer and fertilizer season have already arrived. However, from the actual trading situation in the market, there has not been a clear booming season.
In terms of distribution, many local distributors have low enthusiasm for purchasing goods. Instead, they use “how much, how much†and “fast-forward and fast-out†sales methods and are not willing to store compound fertilizers excessively.
In terms of prices, with the advent of the fertilizer season, the prices of compound fertilizers have not only risen, but have presented a situation of steady decline, such as the current ex-factory price of 25% chlorine-based compound fertilizers is only 950-1050 yuan (t). Price, the same below.
Judging from the current signs, during the fall and winter season this year, the domestic compound fertilizer market is unlikely to have a large market, mainly due to four factors:
The first is the impact of the overall fertilizer market. Since August, with the decrease in demand, there has been a noticeable decline in the fertilizer market, with urea and other varieties falling by more than 200 yuan. In the case of a drop in the price of the entire fertilizer market, it is very difficult for compound fertilizers to “stand aloneâ€. Because the single-element compound fertilizer and other chemical fertilizers have a problem with each other alternative, also followed if other single element fertilizer prices are falling, but in rising fertilizer prices, farmers will use a single-element compound fertilizer instead of chemical fertilizers, forcing fertilizer prices Fell.
The second is the increase in market supply. In the second half of last year, due to the favorable market conditions for compound fertilizers and the country’s price limit on urea prices, many dealers did not dare to store urea in winter and changed to a large number of winter storage compound fertilizers during the last year’s winter storage period, making the supply of compound fertilizers this year apparent. The increase, coupled with the fact that many new compound fertilizer installations have been put into operation this year, has led to a further increase in the supply of compound fertilizers. At present, the market supply of compound fertilizer is very sufficient. Many manufacturers and distributors have a considerable amount of compound fertilizer in their hands, which also makes it difficult for compound fertilizer prices to rise.
Third, production costs have decreased. Since May of this year, the prices of raw materials for various compound fertilizers have dropped significantly. For example, the highest price of monoammonium phosphate reached 2,200 yuan this year, the current price is about 1,800 yuan; urea this year, the highest price reached 2,000 yuan, the current price is about 1,720 yuan. The drop in raw material prices has led to a reduction in the production costs of compound fertilizers.
Fourth, the demand situation is not optimistic. Since the beginning of this year, the prices of chemical fertilizers and other agricultural products have continued to rise on the basis of last year's rise. The prices of many agricultural products not only have not risen in synchrony, but have fallen. This has led to a significant decline in farmer income this year as compared to last year. If not, the country has cancelled agricultural taxes. This year, farmers' income from farming will fall faster. This situation will have a negative impact on the enthusiasm of farmers for farming. Therefore, the demand for compound fertilizer during the fall and winter season this year is not optimistic.
In terms of distribution, many local distributors have low enthusiasm for purchasing goods. Instead, they use “how much, how much†and “fast-forward and fast-out†sales methods and are not willing to store compound fertilizers excessively.
In terms of prices, with the advent of the fertilizer season, the prices of compound fertilizers have not only risen, but have presented a situation of steady decline, such as the current ex-factory price of 25% chlorine-based compound fertilizers is only 950-1050 yuan (t). Price, the same below.
Judging from the current signs, during the fall and winter season this year, the domestic compound fertilizer market is unlikely to have a large market, mainly due to four factors:
The first is the impact of the overall fertilizer market. Since August, with the decrease in demand, there has been a noticeable decline in the fertilizer market, with urea and other varieties falling by more than 200 yuan. In the case of a drop in the price of the entire fertilizer market, it is very difficult for compound fertilizers to “stand aloneâ€. Because the single-element compound fertilizer and other chemical fertilizers have a problem with each other alternative, also followed if other single element fertilizer prices are falling, but in rising fertilizer prices, farmers will use a single-element compound fertilizer instead of chemical fertilizers, forcing fertilizer prices Fell.
The second is the increase in market supply. In the second half of last year, due to the favorable market conditions for compound fertilizers and the country’s price limit on urea prices, many dealers did not dare to store urea in winter and changed to a large number of winter storage compound fertilizers during the last year’s winter storage period, making the supply of compound fertilizers this year apparent. The increase, coupled with the fact that many new compound fertilizer installations have been put into operation this year, has led to a further increase in the supply of compound fertilizers. At present, the market supply of compound fertilizer is very sufficient. Many manufacturers and distributors have a considerable amount of compound fertilizer in their hands, which also makes it difficult for compound fertilizer prices to rise.
Third, production costs have decreased. Since May of this year, the prices of raw materials for various compound fertilizers have dropped significantly. For example, the highest price of monoammonium phosphate reached 2,200 yuan this year, the current price is about 1,800 yuan; urea this year, the highest price reached 2,000 yuan, the current price is about 1,720 yuan. The drop in raw material prices has led to a reduction in the production costs of compound fertilizers.
Fourth, the demand situation is not optimistic. Since the beginning of this year, the prices of chemical fertilizers and other agricultural products have continued to rise on the basis of last year's rise. The prices of many agricultural products not only have not risen in synchrony, but have fallen. This has led to a significant decline in farmer income this year as compared to last year. If not, the country has cancelled agricultural taxes. This year, farmers' income from farming will fall faster. This situation will have a negative impact on the enthusiasm of farmers for farming. Therefore, the demand for compound fertilizer during the fall and winter season this year is not optimistic.
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