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Raw material fertilizers continue to see rising prices; limited options available for compound fertilizers. Author/Source: China Fertilizer Network. Date: 11-16-2020. Clicks: 6. The price of monoammonium nitrogen continues to rise, with an increase of about 50 yuan per week in recent weeks (prices are given per ton). Currently, the actual price at which 55% powdered ammonium nitrogen is sold in Hubei is around 2050 yuan, and in some cases even 2100 yuan. Most companies do not provide public prices and prefer to sell their products to pre-registered customers. At present, companies have orders that can be fulfilled until mid-to-late December, but they are also willing to accept orders at higher prices. It is reported that large manufacturers in Hubei intend to sell 55% powdered ammonium nitrogen at a price of over 2100 yuan, while smaller manufacturers in Yunnan have raised their selling prices to 2000 yuan. Fertilizer manufacturers remain highly interested in ammonium phosphate. Many of them are unable to obtain large quantities of this product in stock, so they are currently pushing for the delivery of the ammonium phosphate that was purchased earlier. Nevertheless, they continue to monitor any new developments in the market for ammonium phosphate, with the intention of making purchases at an appropriate time if such an opportunity arises. The prices of potassium fertilizers and monoammonium phosphate tend to be similar over certain periods. The price of potash chloride from salt lakes has been rising for three consecutive months, and there are rumors that the price of 60% crystalline potash chloride from salt lakes could rise to 2,050 yuan by next month. Currently, agents selling 60% crystalline potash chloride from salt lakes are quoting prices ranging from 1,950 to 2,050 yuan, though many of these agents have no stock available. The price of imported potash chloride also remains high, and traders are generally reluctant to sell their stock. Recently, compound fertilizer manufacturers have gradually come to accept higher prices for potassium chloride, leading to increased enthusiasm for purchasing it. This is especially true for those manufacturers who are not suitable for importing potassium chloride; although they initially had sufficient stocks of potassium chloride as raw material, they are concerned about potential shortages in the future, which has resulted in heightened purchasing activity recently. Urea, a popular product in the fertilizer industry, had already shown a downward trend in prices recently. However, there are reports that India will issue a new round of tenders in the near future, and there is also a possibility of inventory checks in January. Such circumstances could lead to an earlier release of demand before the end of the year, which may result in continued price increases for urea. Currently, compound fertilizer manufacturers in Linyi, Shandong, are offering urea at around 1830 yuan per ton, while the main factory prices for urea in Shanxi range from 1700 to 1710 yuan per ton. These prices have stabilized after rising, but limited production in some areas means that the overall supply remains low, so prices will likely stay relatively stable. Recently, the price of urea has been relatively high, with limited new demand from industrial and agricultural sectors. This is mainly due to the fact that companies and distributors stocked up in larger quantities when prices were lower earlier on; fertilizer manufacturers, too, purchase urea in batches based on their actual needs, and they are reluctant to accept higher prices. In the future, they will continue to pay attention to factors such as pricing trends, inventory levels, and urea supply, in order to decide whether to place additional orders. The prices of raw materials such as nitrogen, phosphorus, and potassium are high and show a tendency to rise further; in addition, there is a shortage of these materials in the market. Under such circumstances, compound fertilizer manufacturers are reluctant to raise their prices arbitrarily. Some have increased their winter storage prices by 30–50 yuan, while others have removed previous discounts or even stopped providing quotes altogether. Companies continue to pay close attention to the market trends for raw materials, and their demand for phosphorus and potassium remains high. As for urea, they adopt a wait-and-see approach, purchasing it only as needed. Some compound fertilizer manufacturers also choose to stock up on ammonium chloride, as it offers better value. In summary, while keeping a close eye on the prices of raw materials from time to time, compound fertilizer manufacturers also take into account factors such as their own operational conditions and the purchasing attitudes of downstream distributors. However, at present raw material costs play a dominant role, and it is expected that compound fertilizer companies will continue to focus heavily on purchasing raw materials in the short term. (Zhao Hongye)