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Weekly Report on the Compound Fertilizer Market for the Third Week of July Author/Source: China Fertilizer Network Date: 2016-07-25 Clicks: 2 This week, the pricing offered by compound fertilizer manufacturers continued to decline, while prices for autumn fertilizers began to be announced. Currently, the average factory price of 45% Cl(15:15:15) compound fertilizer nationwide is around 1,650–1,800 yuan, while the factory price of 45% S(15:15:15) compound fertilizer is around 1,900–2,100 yuan. The majority of factory quotes for 45%Cl (25:13:7) and (18:22:5) are between 1,750 and 1,850 yuan per ton. This week, the overall market for compound fertilizers remained sluggish. Rainy weather in the south moved northward, causing severe damage in North China; sales by companies continued to be weak. A few companies that had stopped production earlier in the week resumed operations, resulting in an overall production rate that rose slightly to around 43%. This week, most companies have begun to issue tentative quotes for wheat fertilizers. The prices for 45%N (25:13:7) and (18:22:5) are around 1750–1850 yuan, with various incentives such as cash rebates and interest guarantees offered; the discount range is approximately 50–150 yuan. However, since these prices are still new, there is a strong sense of caution in the market, and companies are not seeing satisfactory revenue from selling fertilizers in the autumn season. In addition, due to the low prices of nitrogen, phosphorus, and potassium raw materials, the pricing of compound fertilizers has also dropped significantly. At present, both suppliers and end-users of compound fertilizers lack confidence in the future market, with a strong sense of pessimism prevailing. In terms of raw material costs: the price of urea is showing a downward trend while remaining stable. Demand in industrial and agricultural sectors in Shandong is moderate; the standard ex-factory price of urea ranges from 1230 to 1240 yuan, with discounts possible at the time of sale. The price for delivery in Linyi has also dropped, from 1245 to 1250 yuan in the previous two days to 1230 to 1240 yuan ； There is a strong atmosphere of caution among downstream buyers, and due to heavy rainfall in some areas, sales for enterprises have not been satisfactory. Currently, the mainstream ex-factory price for 55% powdered ammonium nitrate is around 1650 yuan, while the actual price at which it is delivered is between 1600 and 1630 yuan ； Following the signing of the large-scale contract for potassium chloride, new pricing for potash produced from salt lakes has not yet been announced, but bearish expectations are evident ； The market situation for potassium sulfate is not favorable, with prices dropping across the board; however, the new price for Luoke potassium sulfate has not yet been announced. The overall market conditions for raw materials remain weak, putting pressure on the prices of compound fertilizers, causing them to decline. Overall, due to a variety of negative factors such as low prices for raw materials, strong caution among downstream buyers, and the significant impact of heavy rainfall, the prices of compound fertilizers are under pressure and falling sharply; low-priced offerings are becoming common. It is expected that the market situation for compound fertilizers will remain unfavorable in the coming period, so caution is still necessary when making decisions.