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    Home > Agriculture News > Fertilizer News > Observe the potential of winter storage of compound fertilizer in Northeast market

    Observe the potential of winter storage of compound fertilizer in Northeast market

    • Last Update: 2022-03-28
    • Source: Internet
    • Author: User
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    With the arrival of a few cold winters, the winter storage market for compound fertilizer seems to be particularly suitable-deserted.
    According to an incomplete survey by China Fertilizer.
    com, the current arrival volume of compound fertilizer from distributors in Northeast China is only 30-35%, while the Fed's joint sales Part of it accounts for about 25%, which shows that the Northeast winter storage market is still tepid, and the continuous decline in the prices of urea and potash makes compound fertilizer manufacturers unable to see the sun.
    This year's Northeast winter storage is more than a little later than previous years.
    First of all, the editor leads everyone to listen to the voice of the Northeast market: Winter storage survey in Heilongjiang: The winter storage market has started slowly, but the overall arrival volume is small.
    Most dealers said: The arrival price of large granular urea stored in the early stage is around 1700 yuan/ton, and the current arrival price has dropped to 1440-1470 yuan/ton.
    Without calculating interest, it has lost about 250 yuan/ton.
    This makes the enthusiasm of downstream winter fertilizers gradually weakened, and the purchase of diammonium is very cautious, and the large-scale purchase of compound fertilizers is postponed until after the Spring Festival.
    Survey of winter storage in Jilin region: The winter storage market has started, but the overall purchase volume is lower than in previous years.
    Most dealers said: Due to the lower grain prices this year and the obvious decline in fertility, the amount of winter storage fertilizer will be reduced this year.
    Most fertilizer companies and large local distributors conduct joint sales with the Federal Reserve, but the grassroots market has not yet started, and the peak season for fertilizer preparation has not yet arrived.
    At present, the downstream buyers have relatively low willingness to accept the buyout price of various fertilizers, and most of them are transacted by means of temporary pre-receipt guarantees, etc.
    , and settlement will be carried out after the later period of the peak season.
    Survey of winter storage in Liaoning: There are fewer distributors of local winter fertilizers, and most of them are waiting and watching.
    The same period last year has entered the peak purchasing season, but now farmers are not motivated to sell grain due to lower grain prices, and dealers have more liquidity in their hands.
    Less, although you can borrow from the bank, but the cost is higher, the market is full of wait-and-see sentiment.
    In addition, it is understood that the local market mostly uses blended fertilizers or slow-release fertilizers, while the sales of urea and diammonium in traditional fertilizers are difficult to make profit.
    In summary, we can see that the current psychology of most downstream dealers in Northeast China is to pay a small deposit to the compound fertilizer company before the Spring Festival, and then start distributing the goods.
    It is very heavy, so most compound fertilizer companies adopt cautious delivery in order to avoid later risks on the one hand: For new customers who dare not to ship in large quantities, old customers who have cooperated for many years can still deliver small quantities; The main reason is that the price of raw materials has fallen continuously, especially the price of urea has continued to fall.
    At the same time, as the main raw material of blended fertilizers-large granular urea has fallen awkwardly, making the quotation of blended fertilizers still a mystery;
    In addition, companies with premature or high quotations will become "bulls-eyes", and raw materials will continue to fall.
    Then companies with late bids will inevitably offer low quotations and seize the market, while companies with premature or high quotations will become targets of public criticism.
    Passive and not conducive to later payment.
    In addition, most compound fertilizer companies use the Federal Reserve to store raw materials in order to avoid risks.
    The reduction in raw material prices directly restricts the trend of compound fertilizer prices.
    This is also the main reason why the price of compound fertilizer companies has not been fixed.
    At the beginning of 2016, the winter storage game for the upstream and downstream of compound fertilizer was tense and fierce, and who will be the winner will ultimately be evaluated by market demand.
    The current situation is that most dealers do not plan to fully prepare fertilizer before the Spring Festival, so most of the market demand for compound fertilizer will inevitably be postponed until after the Spring Festival.
    The spring ploughing market demand is short and concentrated, so the later local shipments will become tight.
    2016 The year is the most difficult year for China’s economy, and how long the L-shaped fertilizer trend will last, we can’t tell, but whoever can cut through the waves and tide over the difficulties in this winter storage stage will be able to be proud of the world.
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