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Author/Source of Compound Fertilizer Market Weekly Report for the Fourth Week of December: China Fertilizer Network Date: 2016-12-27 Click rate: 25 This week, most compound fertilizer companies have begun to issue quotations for winter storage, mainly companies in Shandong, Jiangsu, Lianghu, and Anhui. The quotations for winter storage in Northeast China are still unclear. At present, the ex-factory quotation of the 45% cl (15:15:15) compound fertilizer part for winter storage is around 1,750-1,900 yuan (ton price, the same below), and the 45% s (15:15:15) compound fertilizer part is tentative for winter storage. The ex-factory quotation is around 1,910-2,100 yuan, and the high-end quotation is around 2,200 yuan. The quotation of sulfur-based fertilizer has increased significantly. A few companies have preferential policies such as payment interest calculation and transportation subsidies, but most companies’ preferential policies have been cancelled. A series of factors such as the continued rise in raw material prices, increasing pressure on environmental protection, and vehicle tensions have led to continued increases in quotes for compound fertilizers this week. In particular, the price of sulfur-based fertilizers has increased significantly. The main reason is that potassium sulfate raw materials have been affected by tight shipments, and the supply of raw materials is tight. This has led to an increase in compound fertilizer prices. A few companies have even stopped collecting payments and quotations, waiting for the supply of raw materials and watching the growth of raw materials. However, the grain market price is very low, farmers are reluctant to sell, and dealers are slow to withdraw funds. Especially dealers in the Northeast region are very slow in preparing fertilizer. The current arrival volume is only about 20-30%, and most of them have a wait-and-see attitude. Therefore, compound fertilizer companies have poor collection of new orders. They are currently mainly issuing early orders to be shipped. The overall operating rate of compound fertilizer is currently around 65%. Raw material cost: The operating rate of urea in Shandong is low and the market supply is tight. The mainstream ex-factory quotation has risen to around 1,550 yuan. The number of companies that have temporarily suspended payment collections has increased, and individual manufacturers are preparing to increase their load. ； The market of ammonium chloride is still good, with stable prices. Manufacturers have received many advance orders, and most of them need to control the order intake. According to the downstream market, the dry ammonium device of a factory in Tianjin is still suspended for inspection, and the supply of goods is tight. The early ex-factory price is 550 yuan. ； Monoammonium is mainly stable. All the monoammonium purchased by downstream compound fertilizer companies in the early stage has not yet been delivered, and the inventory is relatively sufficient. Therefore, new order transactions have slowed down. The ex-factory quotation of 58% ammonium powder from some large factories in Hubei has continued to increase by 50 yuan, but the actual transaction is still stable at 2,100 yuan. ； The low-end quotation of potassium chloride in Qinghai has been catching up. For example, the ex-factory quotation of 57% powder has basically risen to around 1,350 yuan. ； The operating rates of Mannheim and potassium sulfate in the water-salt system in the northwest region are not ideal, and the overall operating rate is only 20-30%. Qinghai's external quotation for 50% powder is 2300-2350 yuan to the station. On the whole, raw material prices are still on an upward trend, and compound fertilizer cost pressures continue to increase. Especially due to the recent shortage of potassium fertilizer supply, compound fertilizer quotations have risen sharply. It is expected that high-end quotations of compound fertilizers may remain stable in the short term, while low-end quotations will continue to catch up. In the later market, we still need to pay close attention to the price trends and start-up conditions of raw material companies.