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That’s right! The price of sulfur-based fertilizers has indeed increased. Author/Source: China Fertilizer Network. Date: July 13, 2020. Clicks: 7. At the beginning of July, the autumn fertilizer market arrived as expected, starting once again in a quiet manner. As the main market for wheat fertilizers, the price trends of compound fertilizers in autumn are under close attention. At present, the mainstream prices have been largely determined: the factory price of 45% high-nitrogen/high-phosphorus series wheat fertilizers (such as 25-14-6/18-22-5) is between 1,850 and 1,950 yuan per ton, representing a decrease of nearly 200 yuan per ton compared to previous years. Coupled with the release of some premium products, the overall price level is quite surprising, and a pessimistic outlook is growing for the future market. Compared to wheat fertilizers, the market for sulfur-based fertilizers, which used to be very popular, has taken everyone by surprise recently. Currently, the prevailing selling price for 45% sulfur-based (15-15-15) fertilizers in many areas across the country is around 1,950 yuan per ton; in some cases, certain companies are even offering prices as low as 1,900 yuan per ton. However, things have changed starting this week – some factories in Hubei province have ended their previous low-price policies, and the ex-factory prices have risen slightly. There is also a strong tendency to maintain high prices going forward, suggesting that the sulfur-based fertilizer market is likely to experience some turbulence in the days to come. Firstly, costs are rising steadily. It is understood that across the country, the cost of 45% sulfur-based general-purpose raw materials is 1,840 yuan per ton. In the short term, this price is likely to remain stable or rise. The reason for this is that the market conditions for these raw materials are generally favorable; in particular, the price of ammonium phosphate has seen a significant increase. With the onset of the autumn demand season, the market for ammonium phosphate has revived, and factories have raised their prices. At present, most compound fertilizer manufacturers are in a critical phase of raw material procurement, and it is expected that the positive trend in the price of ammonium phosphate will continue for some time ； The second reason is that although the price of urea fluctuates, after several rounds of adjustments, it remains at a moderate level, with no significant swings. Recently, some manufacturers have been trying to maintain high prices, and the future trend will need to be monitored closely. Secondly, downstream demand still exists. We are indeed in a transitional period between summer and autumn at present, and demand downstream has decreased significantly compared to before; however, this does not mean that demand has completely vanished. Future demand expectations also influence the current market. For example, the demand for fertilizers for fruit trees in the southern regions during autumn cannot be underestimated, with application times mostly falling around the end of October. Sulfur-based fertilizers play a key role in this regard. Not only are fertilizers used for fruit trees, but compound fertilizers will also be needed for other cash crops later on. Given these optimistic prospects, it is not surprising to see price increases at present ； Furthermore, after periods of rainy weather, the suppressed demand downstream will be released one by one, which also drives the market forward to a certain extent. Finally, the number of orders pending for companies is increasing. The prices of sulfur-based fertilizers have risen again. Apart from the currently favorable conditions in terms of raw material prices and demand, some companies acquired large quantities of these fertilizers at low prices earlier and now have a large backlog to deliver. To control the volume of orders they receive, they are forced to adjust the prices of sulfur-based fertilizers slightly downward. At the beginning of the autumn market season, sulfur-based fertilizers took advantage of the rising prices; this not only helped to reduce the financial pressure on companies but also alleviated the stalemate in the market and boosted the enthusiasm of downstream users ； On the other hand, this can indirectly boost the development of the wheat fertilizer market, as autumn is the main period for using wheat fertilizers. While various companies are getting ready to take action, they need favorable factors to support them, including positive trends in the prices of other types of raw materials used in fertilizers. In summary, the prices of sulfur-based fertilizers are seeing another round of increases. Although some companies have limited the extent of these price rises, they have indeed moved away from the previously low price levels. If raw material prices remain relatively stable and demand continues to grow steadily, the sulfur-based fertilizer market is still promising in the autumn period. (Feng Hongyang)