HCBBS Forum (English)
Submit Chemical Projects / Find Solutions
Amplify Your Requirements on a Broader Chemical Platform *Engineering · Technology · Equipment · Solutions*
Submit Request

Whether urea prices rise or not is not that important

2019-11-14View Original

Thread Content

Whether urea prices will rise or not is not that important. Author/Source: China Fertilizer Network. Date: 11-12-2019. Clicks: 65. In mid-November, with the National Phosphorus Compound Fertilizer Conference approaching, it seems as though the fertilizer market, which has been quiet for some time, is about to see a \"savior,\" and market trends are on the verge of changing. So, is that really the case? At present, it is still too early; the fundamental reason for the stagnation in the winter storage market lies in historical \"remaining issues\" that have accumulated over the previous quarters. Short-term, hasty positive factors or speculation may have a slight impact, but it is minimal. Some might say that recently, not only is there the influence of conferences on phosphate fertilizers, but urea prices are also showing a tendency to rise again. There are two reasons for the slight increase in domestic urea prices in certain areas: first, supply is slightly tight in some regions while demand is rising ; Second, India is conducting tenders. The increase in urea prices is, to some extent, beneficial for the winter storage market; if this trend persists, it will be an additional advantage. If not, it has \"no significant impact\" on water-soluble fertilizers. Firstly, it offers a significant cost-performance advantage. With the traditional fertilizer market facing challenges, more and more companies and distributors are turning to the market for new types of fertilizers, among which water-soluble fertilizers are by far the most popular. Compared with traditional compound fertilizers, the advantages of water-soluble fertilizers are, first, a high fertilizer utilization rate and significant application effects. According to relevant data, when applying fertilizers to land of the same area, the cost of using water-soluble fertilizers is even lower than that of traditional compound fertilizers ; The second advantage is that market conditions are relatively stable, resulting in low operational risks. With the changes in the traditional fertilizer market in recent years, price trends have become largely unpredictable and follow no discernible pattern. To mitigate risks, distributors have gradually turned to alternatives; water-soluble fertilizers offer stable prices along with more substantial profits. Secondly, seasonal demand is weakening. Generally speaking, the demand for compound fertilizers persists throughout all periods of the year, with little difference between peak and off-peak seasons, and the intervals between them are relatively short. The difference is that in the past, there was a clear distinction between peak and off-peak periods for water-soluble fertilizers, with significant seasonal constraints. After significant adjustments to the cropping structure in most areas, the use of water-soluble fertilizers increased, and the so-called peak and off-peak seasons became less distinct ; Furthermore, the areas considered suitable for growing single-season crops each year have also changed; for instance, the cultivation of vegetables in winter greenhouses in the northeastern region is becoming more widespread, and water-soluble fertilizers are being used more often. By breaking away from seasonal constraints, the market is showing a positive trend. Finally, policy support has been strengthened. China has a limited total amount of water resources, with uneven distribution in terms of space and time; drought and water scarcity severely hinder agricultural development. Vigorously developing water-saving agriculture, implementing measures to achieve zero growth in fertilizer use, promoting water-fertilizer integration and other techniques for saving water in farmland, and comprehensively improving the efficiency of water use in farming as well as the utilization rate of fertilizers are essential ways to ensure food security, develop modern water-saving agriculture, transform the mode of agricultural development, and promote sustainable agricultural growth. Based on the above, China’s Ministry of Agriculture formulated the \"Implementation Plan for Promoting Integrated Water and Fertilizer Management (2016–2020)\\", which has been actively implemented across various regions. In summary, the urea market has been showing weak fluctuations recently. Although there have been some so-called \"short-term price movements\" in certain areas, the positive factors involved are limited, and price increases seem unlikely once again. However, whether prices rise or not does not play a decisive role in the trend of the water-soluble fertilizer market; driven by factors such as strong demand and cost advantages, the prospects for water-soluble fertilizers remain favorable.

Submit a Project

**Looking for Chemical Technology, Equipment & Solutions?** No Registration Required Broader Platform Exposure | Global Chemical Service Provider Connections

Submit Request — Free Consultation

Disclaimer

This is an automated machine translation of the original thread. Some technical terms may have inaccuracies; the original text shall prevail. Click "View Original" at the top right to access the source page, which supports IP-based automatic real-time language translation. Please watch out for contact details and sales inducements to prevent fraud. All content and translations are for reference only, representing solely the poster's personal views. For enquiries, email service@hcbbs.com.