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    Home > Agriculture News > Fertilizer News > Urea: local prices rebound slightly in the south, dealers still face embarrassment

    Urea: local prices rebound slightly in the south, dealers still face embarrassment

    • Last Update: 2022-03-23
    • Source: Internet
    • Author: User
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    Unknowingly, the spring plowing market has entered the middle and late stages.
    The industry's hope that the urea market can "sail through the waves" through the wind of spring plowing seems to be counterproductive once again.
    Recently, the urea market has been stable and weak.
    After the spring plowing stimulus, prices have fallen relatively slightly.
    However, with the increase in industrial orders after the Spring Festival and the start of some compound fertilizer plants, urea prices in some areas still rebounded slightly.
    A few days ago, the average market price in Guangdong and Guangxi was 1380 yuan/ton, the transaction price in some areas of Guangxi was 1420 yuan/ton, and the market price in Sichuan was 1340 yuan/ton.
    Urea wholesale and retail in Anhui, Fujin, Guangxi, Guangdong, and Sichuan The price increased by 10-40 yuan/ton; while the mainstream ex-factory prices in Shandong, Shanxi, Shaanxi, Henan and other regions remained at 1,200-1250 yuan/ton, and some areas had 5-30 yuan /Ton fall, the price is mainly stable.
    In this regard, Du Erpeng, deputy general manager of the nitrogen fertilizer department of Sichuan Huili Agricultural Chain Co.
    , Ltd.
    , analyzed the relatively active situation in the southern market in the near future.
    He said that the main reason for the recent stability of the urea market price is that spring ploughing fertilizer has stimulated market demand.
    The rejuvenation of wheat fertilizer in North China has digested part of the fertilizer consumption, so the price of urea has not continued to fall, while Guangdong, Guangxi, Fujian and other regions The supply of urea mainly relies on factories in North China such as Shanxi, Shandong, Henan, etc.
    This has led to relatively tight supply in some areas in the south in the short term, and a small vacuum in inventory, which has caused a phased in the market in some areas.
    The market is active, and prices have risen slightly, but from a normal point of view, this situation will not last long.
    Dealers are facing an awkward situation.
    With the continuous bottoming of urea prices, the sluggish urea market has made dealers lack confidence in the market and have a strong wait-and-see attitude.
    They are entangled in when to buy bottoms and whether to stock up.
    The life of dealers in 2016 will be even more difficult.
    .
    Du Erpeng said that the current mainstream ex-factory price of the urea market is 1,200-1250 yuan/ton.
    This price has more initiative for factories, but it is very embarrassing and passive for traders and distributors.
    In the past few years, dealers have been clearing inventory.
    Now that the bottomed price means no inventory for dealers.
    However, after taking the goods, adding capital costs and other factors, they face greater risks, and even At a loss.
    Li Zhi, manager of the Nitrogen Fertilizer Department of Shaanxi Nongke Fertilizer Co.
    , Ltd.
    , believes that the domestic urea market is still showing a downward trend recently.
    The price has bottomed out and the market lacks favorable support.
    Distributors are cautious and lack confidence in the market outlook.
    He analyzed that the spring plowing in Shaanxi has come to an end, but the spring plowing did not stimulate the urea market on a large scale.
    In addition to the low prices of the three major staple foods, farmers’ enthusiasm for purchasing fertilizer has been greatly affected, and some farmers do not even know.
    What should be planted to make money this year? "Low grains hurt farmers" has also greatly affected the demand in the urea market.
    Before the Spring Festival, dealers’ inventories have not been completely digested.
    Some dealers are facing difficulties in capital turnover.
    Continue to stock up.
    Manufacturers should hold together for warmth.
    Now, the "dreary fate" of the urea market's downturn has made it a trend for manufacturers to join together for warmth and tide over the difficult times.
    "From the perspective of dealers, the adjustment and reshuffle faced by the fertilizer industry in recent years has made dealers’ lives more difficult, and their attitudes have become relatively cautious; for factories, the more difficult times, the more Manufacturers and distributors should be strengthened Cooperation to achieve a win-win situation.
    "Du Erpeng believes that in the past, dealers and traders played the role of a reservoir in the market, and some of the dealers’ stocks played a role in supporting the market and stabilizing the market, but now in difficult times, if the dealers do not go If a certain amount of stocking is carried out and the production capacity is not digested, then the price of the factory will continue to fall, and even the market price will continue to bottom out.
    Therefore, manufacturers should gather together to keep warm and spend time together.
    Li Zhi emphasized that the current industry has stepped forward.
    In the case of entering the adjustment cycle, it is necessary for circulation companies to determine through capital ties such as investment and joint ventures and cooperation methods such as general distribution, general agency, and Federal Reserve joint marketing, based on logistics costs, market competitiveness, production capacity, brand, reputation and other factors.
    Cooperate with manufacturers and establish a solid strategic cooperative relationship with manufacturers.
    This kind of cooperation between manufacturers is not only a simple purchase and sales relationship between the two parties, but also the more important connotation-both parties do not care about short-term gains and losses, and can survive and die in times of difficulty.
    Price instability and the shrinking of the agricultural material market, as well as the complex environment of fierce competition in the industry, manufacturers should unite sincerely, cooperate closely, and go against the trend, so as to achieve a win-win and win-win situation for manufacturers.
    It can be said that the future competition in the fertilizer industry will be The supply chain competition of industry and commerce and the coordination of high-quality, stable and competitive strategic resources are the inevitable choices of circulation enterprises.
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