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Is nitrogen, phosphorus, and potassium not affected by heat in summer? Do compound fertilizers require cold conditions in winter? Author/Source: China Fertilizer Network Date: 2019-10-14 Clicks: 33 After the holiday, the market for compound fertilizers remains stable with little activity. The market for wheat fertilizers in North China has largely come to an end. Although the operating rates of compound fertilizer manufacturers remain low, they still face certain sales pressures. Some companies report having large inventories of fertilizers ready for use in the fall, which reduces their enthusiasm for stocking up on raw materials for the next growing season. Some compound fertilizer manufacturers have turned their attention to the Northeast region. However, due to the low prices of the popular products produced by large factories in Henan earlier on, collection of payments has not been satisfactory. Demand for compound fertilizers has not yet recovered after the holiday, and there is a strong atmosphere of caution among downstream customers. Some compound fertilizer manufacturers are willing to purchase raw materials in preparation for the next season, but due to their own pressures, they remain cautious and wait to see. Urea: In the Shandong Lianghe region, urea prices have seen a slight rise after the holiday and have since stabilized. Currently, the price at which compound fertilizer manufacturers in Linyi, Shandong, purchase urea is around 1,800 yuan per ton. At present, urea producers are focusing on fulfilling the orders they received earlier, so there is no significant sales pressure on them. Additionally, factors such as a slight increase in industry operational rates and a gradual recovery in the operating rates of downstream plywood factories contribute to positive conditions, which may lead to further modest increases in urea prices. Downstream compound fertilizer manufacturers, facing considerable pressure, operate at low production levels. Although they are willing to replenish their stock of urea as a raw material, they have no plans to make large-scale purchases at present due to the volatility in urea prices. Monoammonium phosphate: The market for monoammonium phosphate remains sluggish. Some manufacturers have not issued any quotes or are continuing to use their previous quotes; only a few companies have lowered their quotes by 100 yuan per ton. Currently, the ex-works price for 55% powdered monoammonium phosphate from major producers in Sichuan is 1,800 yuan per ton, with room for negotiation. In Hubei, the actual ex-works price for 55% powdered monoammonium phosphate, based on acceptance terms, is around 1,850 yuan per ton, also open to negotiation. In Shandong, the acceptance-based delivery price for 55% powdered monoammonium phosphate ranges from 2,000 to 2,050 yuan per ton. Downstream compound fertilizer manufacturers will have certain procurement and stock-replenishment plans in the near future. However, given the current market conditions for monoammonium phosphate, even with guaranteed prices, these manufacturers do not have a strong desire to make large purchases at the moment, and traders also show little interest in entering the market. Demand for monoammonium phosphate might increase slightly as the phosphorus compound fertilizer conference approaches, but it is unlikely to be sufficient to consume the daily production and inventory of monoammonium phosphate manufacturers. In the short term, there should be no significant increase in procurement by compound fertilizer manufacturers, who will mainly replenish their stocks as needed. Potash fertilizers: The new price of potassium chloride from salt lakes for this month is not yet known. Although prices at the ports remain stable, traders say that a price reduction would not have much impact. However, due to weak demand and high inventory levels at the ports, the actual transaction prices are gradually falling. Currently, the actual selling price for 62% pure potassium chloride is around 2230–2250 yuan per ton. The sales of potassium sulfate have also been less than satisfactory; there is a risk of price cuts in the future. Currently, the actual ex-factory price of 52% powdered potassium sulfate produced by Mannheim across China ranges from 2,750 to 2,900 yuan per ton, with some regions seeing prices that are 200–300 yuan per ton higher. Downstream compound fertilizer manufacturers pay little attention to urea, and even less so to potassium fertilizers during the off-season for demand; they mainly fulfill existing orders or restock as needed. In summary, it is hoped that the phosphorus compound fertilizer conference in November will bring some vitality to the sluggish fertilizer market. However, based on the current situation, although compound fertilizer manufacturers will prepare for the production of fertilizer stocks for winter, cautious purchasing remains the dominant approach; it is unlikely that there will be a significant improvement in the fertilizer market by then. (Zhao Hongye)