When it comes to the best fertilizers, urea still takes the crown!

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When it comes to the best fertilizers, urea still takes the crown! Author/Source: China Fertilizer Network Date: 2019-03-18 Clicks: 9 Spring plowing has begun in some areas of the fertilizer market recently, but the performance of various mainstream fertilizer types in this market varies. The phosphatic ammonium market is operating in a weak condition: the price of monoammonium phosphate continues to decline, companies still face inventory pressures, new orders are not performing well, and prices keep falling. It is reported that the price of 55% powdered phosphatic ammonium at the lower end is 1,980 yuan per ton (the same unit is used throughout). For large manufacturers, the price of 58% powdered phosphatic ammonium in Shandong is 2,400 yuan per ton. In most parts of the country, the price of monoammonium phosphate can remain stable at levels seen in early April ； The price of diammonium phosphate remains weak and stable; manufacturers are holding their prices in anticipation of increased demand from farmers. Although the shipping process for companies in the northwest region is nearing completion, there is still low acceptance of products at high prices in that region as well as in the northeast. The reference price for picking up 64% diammonium phosphate at the port in Bayuquan is between 2800 and 2820 yuan. Due to an ample supply, there is still room for further negotiation on the prices of certain brands. The low-end segment of the potassium fertilizer market remains stable for now, while prices in the high-end segment continue to fall. Despite numerous rumors circulating recently, overall market demand is weak; traders are holding their prices and waiting to see what happens. Currently, the mainstream price for 62% pure potassium fertilizer at ports is between 2350 and 2420 yuan. Sales in the compound fertilizer market have shown some improvement. Currently, the standard factory price for 45% chlorinated general-purpose fertilizers is between 2000 and 2100 yuan, while that for 45% sulfur-based general-purpose fertilizers is between 2300 and 2400 yuan. Purchases in the local markets are following a similar trend. 　　However, the urea market has seen rising prices recently. Yesterday, the ex-factory prices of urea at some factories in Shandong province had risen to around 2,000 yuan, while the purchase prices of urea by compound fertilizer manufacturers in Linyi region also increased to between 2,000 and 2,020 yuan. Even in Xinjiang, where prices are usually low across the country, the ex-factory price of urea rose to 1,680–1,720 yuan. Urea prices are generally on the rise; despite the poor performance of most other types of fertilizers, the urea market is showing the opposite trend. This prolonged increase in prices can be attributed to the following reasons: First, reduced production capacity coupled with increased demand. The resumption of operations and full-scale production by urea production companies is nothing new in the urea industry. However, instead of seeing such companies resume production on a large scale, some factories have stopped operating due to issues with their equipment. Coupled with problems related to the supply of raw materials for these companies and staggered production restrictions in regions like Shanxi, the current daily production volume of urea remains slightly above 140,000 tons. Meanwhile, some urea producers that also have facilities for producing compound fertilizers have reduced their output in order to meet their own demand. 　　Secondly, the demand driven by preparedness. Some in the industry say that demand in the grassroots markets has slowed down slightly this year, while the timing of fertilizer use remains relatively unchanged. In other words, demand in these markets is concentrated over a short period of time, which places greater pressure on the supply capabilities of compound fertilizer manufacturers and distributors, as well as their ability to stockpile fertilizers. It is reported that some large compound fertilizer manufacturers in the Central Plains already have reserves of raw materials amounting to over 200,000 tons; under such demand conditions, the supply of urea can be ensured. 　　In summary, urea prices have been rising steadily recently, and the willingness of some downstream buyers to make purchases has also increased as a result of these price increases. However, considering urea’s performance in previous years as well as current market demand, urea at these prices is not suitable for long-term storage, and caution is still necessary when making purchases.