Cost support fertilizer market outlook can be expected

Since the new year, the compound fertilizer market has been operating smoothly and shows signs of recovery. At present, the mainstream price of domestic 45% chlorine-based compound fertilizer is 2,400 yuan (ton price, the same below), and the mainstream price of 45% sulfur-based compound fertilizer is 2,600 yuan. Comprehensive analysis of the market in all aspects, the author believes that under the support of raw material costs, as a cost-input compound fertilizer, its market will gradually improve, the market outlook is worth the wait.
First, the monoammonium phosphate price has risen steadily. After the New Year, the monoammonium phosphate market has improved significantly. Currently, the domestic 55% powdered and particulate ammonium phosphate mainstream factory price is 2,650-2,700 yuan, and the 58% powdered monoammonium phosphate mainstream factory price is 2,800 yuan, both slightly higher than the previous week. The recent increase in the price of raw materials such as phosphate ore and sulfur has also played a supporting role in the price of monoammonium phosphate. After the New Year, the supply of phosphate rock is very tight. Yunnan Phosphorous Group announced that the price of 29% grade phosphorite ore has been raised. The price of car plates outside the province is 370-380 yuan, which is an increase of 50-60 yuan. The price of phosphate rock in Hubei Province also follows the upward adjustment. ~ 20 yuan. This week, the domestic and international sulphur market was booming. The international sulfur Vancouver FOB rose 4.6% to $183. Domestic sulfur ex-factory prices continued to soar by 7.1% to 1,500 yuan. Affected by the increase in sulfur prices, sulfuric acid correspondingly higher, monoammonium phosphate market continues to strengthen, no suspense.
Second, the potash market is bullish. On January 12, 2011, the KCl contract concluded. Although the CIF price of $400 was ideal, it still rose by $50. According to the current exchange rate, the port price corresponding to CIF 400 is about 3,050 yuan, which is higher than the current quotation of 2,800 to 2,900 yuan. The potash price is expected to rise strongly. At present, due to seasonal reasons, the transportation of potash in Qinghai is not very satisfactory. The port has just signed a large contract, and new goods will be available in mid-March. Border traders will also have no goods in their hands, and the spot of potassium chloride will be tight in the short term. The price will increase.
Third, the urea market is still expected to rebound. The urea market saw a wave of upswings after the New Year. Although last week it continued its upward trend, it experienced mixed ups and downs and high volatility. Although the Shandong urea market was unexpectedly declining, it did not spread at all. The price and cost of urea are upside down. The quality of anthracite is generally 1600 to 1,700 yuan, and some of it is 1,800 yuan. At present, domestic coal is tight. International floods in Australia affect coal exports, and international coal prices are higher than those of domestic coal before the Spring Festival. The market is unlikely to change. In addition, urea exports before tariff adjustments were relatively large last year. After tariff adjustments, urea companies waited and watched and restricted production at all locations, production starts were low, and market stocks were insufficient. Urea prices may still rebound.
At present, the demand for winter wax fertilizer in the northern region may be postponed due to drought. The freezing disaster in the southern region is severe. The overall market for compound fertilizers has not yet fully started. Only the northeastern market has shown signs of starting up slightly. However, after the Spring Festival, the fertilizer season is about to begin. The spring market has a rigid demand for compound fertilizer, and in the winter storage, a visually-informed downstream grass-roots distributor has only 34% of inventory at present, and the gap is still relatively large. It is expected that businesses will enthusiastically receive goods after the Spring Festival. Will be released centrally. In addition, the spring season from January 19 to February 27 has also begun. Transport tensions may also increase the market. On the whole, there are many favorable factors for compound fertilizer, and the possibility of price decline may be basically eliminated. In the short term, it will basically remain stable. With the demand starting after the Spring Festival, compound fertilizer is expected to usher in a wave of rising prices.

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