The fertilizer industry ushered in a boom cycle

The price of urea phosphate fertilizer has reached a new high and the price of potassium fertilizer has soared

The price of urea phosphate fertilizer has reached a new high and the price of potassium fertilizer has soared

It is no exaggeration to describe this year's fertilizer market as "hot market"
.

The prices of nitrogen, phosphorus, and potassium fertilizers, the mainstay of domestic agricultural fertilizers, have risen in turn

　The price jumps and the market is hotThe　price jumps and the market is hot

According to Wang Wenkang, manager of Guangxi Luming Agricultural Materials Co.

, Ltd.
, the most outstanding performance in the fertilizer market this year is undoubtedly urea, which has achieved multi-level jumps in prices

Driven by the sharp rise in urea prices, the phosphate fertilizer and potash fertilizer markets are also vying to rise, and the price increases are one after another
.

By mid-June, the mainstream price of 55% powdered monoammonium phosphate is 2900~3050 yuan, the mainstream price of 58% powdered monoammonium phosphate is 3100 yuan, and the mainstream price of 60% powdered monoammonium phosphate is 3200 yuan, an increase of about 800 yuan from January.

After entering June, domestic potash fertilizer prices have risen steadily, and international potash fertilizer prices have continued to rise sharply
.

At present, the price of 62% Russian white potassium chloride in the port area has exceeded 3,000 yuan, and it has risen by about 500 yuan in the past month

"In previous years, the price of chemical fertilizers has risen by 300 yuan per year, even if it is a good market.
This year, it will be more than 500 yuan, and there are many varieties whose prices have risen by 1,000 yuan.
This kind of market is too rare
.

" Wang Wenkang said

Focus on the five benefits

　The five advantages are concentrated and exerted 　 The　five advantages are concentrated and exerted

　　Why did fertilizer prices soar this year? Zhu Jian, marketing director of Hunan Tianbo Agricultural Resources Co.
, Ltd.
, analyzed five reasons:

　　First, it was affected by the sharp rise in the price of bulk materials
.

After the "May Day" holiday, the prices of bulk materials rose wildly, with iron ore futures prices exceeding 1,200 yuan, rebar futures prices exceeding 6,000 yuan, and aluminum ingot futures prices exceeding 18,000 yuan

　　Second, the operating rate of enterprises was lower than expected
.

This year, the price of chemical fertilizers is high, and the profitability of enterprises is large.

　　Longzhong Information analyst Yu Lijuan introduced that the domestic urea output from January to May this year was 22.
39 million tons, a slight decrease from 22.
54 million tons in the same period last year, but the export volume from January to April was 440,000 tons higher than the same period last year.
The domestic supply has been significantly reduced compared with the same period last year
.

　　The third is the increase in demand
.

The prices of agricultural products are also rising this year, and farmers’ enthusiasm for planting has increased; in addition, to ensure national food security, the country’s arable land has increased by 10 million mu this year, and the amount of fertilizer used has increased accordingly; in addition, industrial fertilizers have also increased, and many factors have led to the demand for fertilizers this year.
Rise
.

　　Fourth, the price of raw materials has risen
.
In mid-March, the average price of thermal coal in the market was 644.
5 yuan, which rose to 931.
25 yuan in mid-June, and the price increased by 44.
5% in three months
.
At present, the price of sulfur in the port has risen to around 1,600 yuan, the high-end price of sulfuric acid in Yunnan is around 800 yuan, the price of liquid ammonia has risen to 3800-4500 yuan, and the price of phosphate rock has risen to 510 yuan
.
Rising raw material prices directly push up the cost of fertilizer production
.

　　Fifth, the price of international chemical fertilizers has risen sharply
.
International fertilizer prices have increased tremendously this year.
In mid-June, the international price of urea exceeded US$430, the price of diammonium phosphate exceeded US$600, and the price of potassium chloride exceeded US$300, generally increasing by more than 40% compared to the same period last year
.
The surge in international fertilizer prices not only stimulated fertilizer exports, but also pushed up domestic prices
.

　　Call for a rational return to the market

Call for the return of market rationality Call for the return of market rationality

　　As the price of chemical fertilizers rises sharply, the potential business risks of companies continue to increase, which has attracted the attention of relevant departments
.

　　In response to the excessive increase in the price of bulk commodities, the State Council held two executive meetings in a row and proposed to attach great importance to the adverse effects of rising bulk commodity prices, make arrangements to ensure the supply of bulk commodities and stabilize prices, and maintain stable economic operations
.

　　The Secretariat of the China Agricultural Material Circulation Association reminds the majority of agricultural material companies to pay close attention to market changes, scientifically study and judge the market, and take measures to effectively prevent risks
.
On June 8, the China Nitrogen Fertilizer Industry Association issued an initiative: to ensure the supply of domestic nitrogen fertilizer production in summer, and during the peak season of domestic fertilizer use, nitrogen fertilizer production and distribution companies should appropriately reduce exports
.

　　For the later trend of the fertilizer market, most of the industry is currently optimistic, the reason is the support of the international fertilizer market
.
It is understood that Egyptian urea producers rejected a bid of US$440 FOB, and for the first time in Latin America, urea with a price above US$500 CFR appeared
.
Such ultra-high prices will still bring some support to the domestic market, and it is expected that domestic urea prices still have an opportunity to rise
.

　　However, Wang Wenkang also believes that the international market should be treated rationally
.
"Overall, the volatility of the international fertilizer market is much higher than that of the domestic market.
If domestic prices blindly follow the international market, irrational speculation and market ups and downs will easily occur
.
" Wang Wenkang analyzed
.

　　China Fertilizer Network analyst Tan Junying believes that the trend of domestic fertilizer prices is not only affected by the international market, but domestic supply and demand is the key
.
In the near future, the supply of domestic urea sources will increase, and downstream resistance will grow stronger, and local price reductions are inevitable
.

　　Zhu Jian said that after the meeting of the State Council, the prices of iron ore, ferrous metals, coal and other bulk products have recently turned down.
Some products have fallen by more than 20%.
This decline will sooner or later affect the fertilizer market
.
"In August of the previous year, as the market gradually entered the off-season of demand, fertilizer prices would fall, but this year due to the excessive increase, there is a more obvious bubble in the market, and fertilizer prices may fall ahead of schedule
.
" Zhu Jian analyzed
.