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Fertilizer prices rise across the board, not one exception. Author/Source: China Fertilizer Network Date: 2020-03-03 Clicks: 1 “I expected prices to go up, but I didn’t expect them to rise so quickly.” ”Why did it go up? Up to now, many people, including some of the companies that raised their prices, are likely still completely confused! But in any case, following urea and phosphate-based fertilizers, potassium fertilizers have also stopped remaining untouched by price increases; in the past half month, an increasing number of them have seen their prices rise. Although it cannot yet be said that a formal upward trend has begun, overall, the fertilizer market is now experiencing price increases across all categories. The increase in the price of potassium chloride is mainly evident in the port markets in the Northeast, where the maximum rise over a period of about a week was 150 yuan per ton. It is understood that not long ago, the typical selling price for 60% potassium-enriched red granules packed in bulk at Bayuquan Port was around 2,180 yuan per ton. Currently, major distributors have halted sales due to shortages, while smaller distributors are charging approximately 2,330 yuan per ton ； 62% talc: The initial bid was 2,250 yuan per ton and negotiations were possible; now the price is 2,270 yuan per ton, but it’s not certain that stock is available. Such price increases have objective justification: firstly, although the total inventory at the port is high, a large proportion of this consists of goods in bonded status. As of now, no major contracts have been signed, and import volumes are starting to decline; the regular port inventory is gradually decreasing compared to the same period in previous years. Taking Bayuquan Port as an example, the current regular port inventory is 40% lower than it was during the same period last year ； Secondly, although border trade has seen a resumption of imports, especially of the large-red-grain variety, transportation remains problematic for now. Meanwhile, pellet factories have also seen reduced production compared to previous years due to unfavorable market conditions and a shortage of raw materials; they are only just starting to pick up pace. In other words, there is a shortage in supply sources outside of the ports as well ； Third, prices of all other fertilizers are rising, while port-based potassium chloride has consistently operated at a loss. So whether it’s due to these rising prices or a return to more rational pricing, in any case, even at current levels, the price has only just risen above the minimum cost threshold for importers; they may not yet have escaped losses. The increase in the price of potassium sulfate is mainly evident in the low-price markets north of Mannheim, with an overall increase of around 100 yuan per ton. The trigger for this wave of price increases was the sharp decline in the price of the by-product hydrochloric acid, which led to a significant rise in costs. The underlying cause was the substantial drop in production rates earlier on and the decrease in inventory levels. It is understood that in the northern market, which mainly includes regions such as the Northeast, the Two Rivers area, and Shandong, the actual ex-factory prices of 52% fully water-soluble powdered potassium sulfate and 50% granular potassium sulfate have risen from around 2,550 yuan per ton earlier on to around 2,650 yuan per ton at present, with prices possibly being even higher in some areas. No wonder, in the early stages, no matter how high the inflated prices were, most companies insisted on keeping their advertised prices at around 2,700 yuan per ton. Looking back on it now, could that be considered a form of \"foresight\"? However, the upward trend in potassium fertilizer prices may continue, at least until around mid-March, but it remains very difficult for the entire industry to enter an upward trajectory. Firstly, the negotiation of large-scale contracts is expected to take place in March or April, and prices are likely to drop significantly, which will directly affect the costs of potassium chloride and potassium sulfate ； Secondly, the supply and demand dynamics in the fertilizer market should not have led to the current situation of supply falling short of demand. As the pandemic eases, the market will gradually return to rationality; however, various problems that were a cause for concern earlier may still occur ； Thirdly, in addition to preventing the epidemic and ensuring spring plowing, there is also the need to stabilize prices; **various conveniences and discounts are provided. A slight increase in prices is understandable, but a significant rise will surely draw attention. Therefore, when deciding on upcoming purchases, it is necessary to consider one’s own actual situation carefully; order what needs to be ordered without hesitation, and order less for items that are not urgent. (Adu)