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China: Price of winter storage fertilizer continues to rise
Over the past month, due to the effects of multiple factors - such as increase in the price of raw material - the price of chemical fertilizer has been rising continuously.
According to statistics, the wholesale price index of China's chemical fertilizer has continued to rise for five weeks. In the current situation, many dealers are not optimistic about the market prospects in this winter. Some dealers think the current high price of chemical fertilizer is due to the rising price of international fertilizer, and the prices of bulk products such as steel, coal and chemical products are also all far too high. The possibility of a market pullback is great, and the risk is obviously quite high.
Currently, the compound fertilizer market is its the early stages and the players in the industry are very cautious. But the price of raw materials, urea, phosphate fertilizer and potash fertilizer has increased sharply. In just two weeks, ammonia companies in Hubei are almost at their limit and they have temporarily stopped providing a quotation or accepting payments. The supply of compound fertilizer is sufficient, but taking into consideration the lack of demand at the grassroots level, currently, compound fertilizer companies are trying to raise the price of sulfur fertilizer by about 100RMB / ton.
In this “rising” market, the increase in the price of compound winter storage fertilizer seems to have become a foregone conclusion. At this moment, there are more dealers and they buy most of the products at the current price of autumn fertilizer. According to the forecast, the specific price offer of winter storage fertilizer will be available at end of this month or the beginning of next month; the average increase might be up to 200RMB / ton.
Source: Internet Agricultural People
Publication date: 11/20/2017
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