Nitrogen fertilizer market is expected to usher in the small market before the Spring Festival

2010 is undoubtedly a fateful year for the domestic nitrogen fertilizer industry. In particular, after the implementation of the new tariff policy at the end of the year, the nitrogen fertilizer market was almost entirely subdued. With the beginning of the new year, the price of nitrogenous fertilizers is shifting again under the impetus of the spring plowing and the upstream. It is expected that the market will usher in a small market before the Spring Festival. However, experts pointed out that in the long run, as long as the policy is not adjusted, the outlook for nitrogen fertilizer is still not optimistic.
According to data provided by Longzhong Information, domestic urea prices rose steadily on January 6 and some manufacturers in East China and North China rose at RMB 10-20/ton. Among them, the urea market in Shandong continued to rise slightly, and the mainstream quoted prices were mostly in the range of 1920-1940 yuan/ton. Jiangsu urea market also rose slightly, the mainstream quoted at 1970-2000 yuan / ton.
“In the near future, the enthusiasm of downstream product picking has been mobilized slightly, and the latest shipment status of the manufacturers is also relatively smooth. Since winter wax fertilizer will be used at the end of the month, some dealers have already started purchasing.” An industry person expects that the urea market will continue Slowly pick up. The recent adjustment of coal prices also provides some support for urea prices.
According to a senior executive from Shandong Mingshui Dahua Group, “The fertilizer has been gradually used in the northeastern part of the country recently. Large distributors are also preparing to take the goods. In the middle and late January, that is, a few days before the Spring Festival, there is still hope that there will be a As for the current price, it is not a big problem to raise 100-150 yuan/ton."
On the other hand, the international market also provides important support for the strengthening of nitrogen fertilizer prices. Before that, the international market just ended 2010 in the midst of rising prices of nitrogen, phosphorous and potash fertilizers. This made the days of international large-scale fertilizer manufacturers relatively easy. Some manufacturers even said that they had sold them from January to February 2011. The yield.
However, due to the shortened export period of fertilizers in China, industry insiders predict that China's export volume in 2011 will fall from 5.5 million tons in 2010 to 3.5 to 4 million tons. When demand for fertilizers resumed in the Asian market in January, the supply of urea in China decreased in the international market, which may prompt the international urea prices to continue to rise.
In the long term, due to the overcapacity in the domestic market and the unfavorable policies, the outlook for the nitrogen fertilizer market is still not optimistic.
“The nitrogen fertilizer industry is very bad now. It can't be said that it can't live or live. It's also dead.” A chemical fertilizer expert from the China Petroleum and Chemical Industry Planning Institute told reporters yesterday that due to the policy's unfavorableness to the industry, the cost has been reversed. "Anthracite was sold for 1,700, 1,800 yuan, urea was sold for 1800, 1,900 yuan, which led to the loss of most plants." He pointed out that the country's tariff policy on fertilizers should be reconsidered, otherwise it will cause the industry ups and downs.
The major domestic nitrogen fertilizer listed companies include Hualu Hengsheng, Hubei Yihua, and Cangzhou Dahua.

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