Recently, the rapid rise and fall of urea has made the compound fertilizer market in the autumn a new wave. First, the low-end quotation is reduced, the second is to partially stop receiving payments, and the third is a strong atmosphere of cautious operation.
Throughout July, especially in the second half of the month, the prices of compound fertilizer industry chain products fluctuated significantly, and most prices rose. The data at the end of July showed that only potassium chloride and diammonium phosphate declined from the previous month; The price increase of other products ranges from 1% to 77%. The upward exploration of raw material prices has international price pulling factors, there are also local supply constraints, downstream demand, etc., but the collective inflation makes the cost of compound fertilizer increase faster. In order to ensure the operation of enterprises, some manufacturers have urgently stopped the collection, and careful operation has increased.
Entering August, with the promotion of autumn fertilizer, enterprises are waiting to issue orders, and the capacity utilization rate will gradually increase. However, at the same time, the raw material shock market will increase the difficulty of enterprise pricing, enterprises with a distinct seasonal ratio will be cautious, and there are small enterprises due to slow advance receipts caused by fewer orders, capacity utilization is relatively slow to improve. In this case, what needs to be considered is the tight supply of centralized delivery in the later period. Fortunately, the current early orders are continuing to be shipped, and the new order has been waiting for re-pricing and then promoted again.
For the market in August, upstream urea or maintain a high level of volatility, but phosphate fertilizer, potassium fertilizer firm performance, some also have a certain rise in expectations, the cost of compound fertilizer and mentality to play a supporting role.
In addition, Russia terminated the Black Sea agreement, Ukraine's grain exports were blocked, and the new season crop yield in the United States faced a decline due to drought. The strengthening of international food prices has also boosted domestic corn prices, which will also support the compound fertilizer market.
