August 2016 Weekly Review on Compound Fertilizers: Confidence in the compound fertilizer market is gradually recovering

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Weekly Review of Compound Fertilizers: Confidence in the compound fertilizer market is gradually recovering. Author/Source: Date: 2016-08-29 Clicks: 11. The domestic compound fertilizer market remains stable, with no significant increase in transactions. The operating rate of compound fertilizer production facilities in Shandong region is increasing slowly, with some enterprises operating at full capacity. Due to environmental regulations, the operation load in Hubei region is relatively low. In terms of raw materials: the price of urea remains stable, while the markets for ammonium nitrate and potassium fertilizers are weak but steady, which provides support for the compound fertilizer market; as a result, the cautious attitude in the market has diminished. The prevailing ex-factory prices for compound fertilizers remain relatively stable: 45% sulfur-based compound fertilizers cost between 2100–2300 yuan per ton, while 45% chlorine-based compound fertilizers cost between 1600–1750 yuan per ton; prices for high-end products have seen a noticeable decline. 　　The compound fertilizer market in Henan remains weak but stable. The current typical factory prices are around 1,800 yuan per ton for 45% chlorinated compound fertilizers, and around 2,200 yuan per ton for 45% sulfur-based compound fertilizers. With the production of wheat fertilizers approaching, factories are gradually resuming operations, but the preparation of fertilizers is somewhat delayed compared to the same period in previous years. Local downstream traders usually make purchases only when there is demand; the trends in raw material prices affect their ability to make payments and obtain goods. The market for compound fertilizers in Hunan remains stable. Currently, the standard factory prices remain unchanged: 45% chloride-based compound fertilizers cost around 1,850 yuan per ton at the factory, while 45% sulfur-based compound fertilizers cost around 2,300 yuan per ton. Purchases are mainly aimed at economic crops, with few shipments to other areas. Due to the weak market conditions, manufacturing facilities are operating at reduced capacity. The compound fertilizer market in Hebei region is showing signs of relaxation. The standard factory prices are as follows: 45% chlorinated compound fertilizers cost 1,700–1,800 yuan per ton at the factory, while 45% sulfur-based compound fertilizers cost around 2,200 yuan per ton. Companies are beginning to prepare fertilizers for wheat cultivation; in previous years, this process started much earlier, but this year it has been delayed overall ； So far, there has been no significant recovery in vehicle sales, nor is there a strong desire on the part of end-users to stock up in advance. 　　Future market forecast: Demand from downstream markets has not yet truly picked up, and downstream distributors are afraid that purchasing now could result in losses in the future, which is slowing down transaction activity. The excessive price drop in diammonium compounds has a significant impact on the autumn compound fertilizer market; it is expected that the market will remain stagnant in the short term, with a slow downward trend within a narrow range. (Chinese Agri-Materials)