The domestic urea market rebounded quickly after experiencing a low tide during the “May 1st†period. The mainstream quotation rose from the previous 1900 yuan/ton to the current 2,300 yuan/ton, of which Hebei and Shandong have been approaching 2,400 yuan/ton under tight supply, and the mainstream quotes have been restored to the level before the new tariff was introduced. . Faced with high prices and difficult supply of urea market, and then for the pressure of environmental protection and transport tensions, limited power limited production and transportation to the storm, distributors have ordered in advance, causing the original very tight urea market was cast A layer of tension.
Coal - tight!
"Coal prices have risen so fast that our production lines have limited production." A sales manager from Inner Mongolia Wulashan Chemical Fertilizer Co., Ltd. expressed his frustration at the current increase in coal prices. According to him, the mining price of white coal in Ningxia was 660 yuan/ton last year, and it has risen to 1,300 yuan/ton by the end of May, and there is still an upward trend. Calculated by one ton of coal per ton of fertilizer, it is difficult for enterprises to make profits, and small peripheral manufacturers have stopped production. Larger enterprises are also struggling, and only by limiting production capacity to ease pressure.
Yinchuan, a urea production person in charge, said that last year, the coal price was only around 600 yuan/ton, and once this year's price rose, the highest price of steam shipped by coal has reached 1,500 yuan/ton. Manufacturers have to find another way to go far to the Shanxi region. Find new resources. At present, coal in Shaanxi, Gansu, Shandong, Henan and other places also rises, and people in the industry are worried about the survival and development of nitrogen fertilizer companies. "The nitrogen fertilizer company has reached the critical moment of survival."
According to industry sources, the urea capacity of domestic coal-to-nitrogen fertilizer companies accounted for two-thirds of the total domestic urea production. According to the current cost, the limit price of RMB 1,725 ​​per ton has become a “chicken rib†that limits nitrogen fertilizer production enterprises.
According to the statistics of Zhongneng Company, as of May 18, the coal stocks of direct power supply plants were 21.091 million tons, a decrease of 166,000 tons compared with last week. In addition, apart from the tight supply of coal, China’s coal for metallurgy, chemical industry, and building materials is also in short supply. With coal supply continuing to be tight, coal prices have naturally continued to rise. In order to ease the tight coal supply situation in China, relevant state departments have taken measures to accelerate the acceptance of small coal mines for resumption of production and to “lock loose†small coal mines as soon as possible. Timely issuance of safety production licenses and recovery of small coal mines that meet safe production conditions.
Transport - tight!
Due to the pull of the Olympic economy and the impact of the Sichuan earthquake, the transportation situation has become increasingly tense.
A person in charge of a nitrogenous fertilizer company in Shanxi stated that except for some large-scale urea companies that have specialized transportation lanes, most companies in the province are difficult to apply for wagons and have poor transportation. At present, the demand for urea in Shanxi Province is not booming, and the inventory pressure of production enterprises has become apparent.
A sales manager of Inner Mongolia Wulashan Chemical Fertilizer Co., Ltd. said that due to the impact of the Sichuan earthquake, wagons are given priority to transporting relief supplies. The possibility of the most recent wagon approval is not high. The dealers are getting goods and are forced to use Qiyun, but the price of Qiyun increases due to rising oil prices. Costly, manufacturers and businesses are in a dilemma. Manufacturers have no choice but to backlog their inventory and distribute them to the following 20 sales outlets. However, the fertilizer season in the surrounding markets in Inner Mongolia has passed and it is difficult to stimulate demand for urea.
In addition, most highways in the north limit the use of six-axle trucks on the road. This has caused inconvenience to the automakers. The dealers heard the embargo of the trucks at the end of June and they were preparing goods early. A new round of urea panic hit again.
Source - tight!
According to statistics, from January to April, China exported a total of 3.0102 million tons of urea, which is more than four times the export volume of the same period of last year. This is the direct cause of the current tight urea and rising prices. From the current point of view, although the new tariffs have effectively limited exports, a large amount of outflows in the previous period caused the domestic market to become tense. Coupled with the arrival of fertilizer seasons all over the country, the urea market was “up and downâ€.
Starting from April 20th, exports are basically prohibited, but the export of urea under the original tariff in the port protection zone can be delayed until May 20, and a large amount of urea is still being exported. In addition, the introduction of new tariffs has caused dealers to adopt a wait-and-see attitude, and they have not dared to purchase a large number of goods. The reduction in the volume of urea transactions has caused the supply of goods on the market not to be effectively supplemented. Although urea prices rebounded, dealers began to purchase large quantities, but in terms of production, manufacturers are under pressure from rising raw materials and tight supply, which also makes the supply on the market even more tense. Since exports were basically banned before the fourth quarter, and even if the international market accepts China's high-priced urea, the possibility of the government adding special tariffs is also very high. Therefore, the impact of exports on the domestic market will not be considered for the time being. However, the supply on the domestic market is tense. There are also excessive pressures on costs and transportation, plus the demand for urea in the agricultural market in most areas around mid-June. There is still room for growth in the price of urea in the future.
Coal - tight!
"Coal prices have risen so fast that our production lines have limited production." A sales manager from Inner Mongolia Wulashan Chemical Fertilizer Co., Ltd. expressed his frustration at the current increase in coal prices. According to him, the mining price of white coal in Ningxia was 660 yuan/ton last year, and it has risen to 1,300 yuan/ton by the end of May, and there is still an upward trend. Calculated by one ton of coal per ton of fertilizer, it is difficult for enterprises to make profits, and small peripheral manufacturers have stopped production. Larger enterprises are also struggling, and only by limiting production capacity to ease pressure.
Yinchuan, a urea production person in charge, said that last year, the coal price was only around 600 yuan/ton, and once this year's price rose, the highest price of steam shipped by coal has reached 1,500 yuan/ton. Manufacturers have to find another way to go far to the Shanxi region. Find new resources. At present, coal in Shaanxi, Gansu, Shandong, Henan and other places also rises, and people in the industry are worried about the survival and development of nitrogen fertilizer companies. "The nitrogen fertilizer company has reached the critical moment of survival."
According to industry sources, the urea capacity of domestic coal-to-nitrogen fertilizer companies accounted for two-thirds of the total domestic urea production. According to the current cost, the limit price of RMB 1,725 ​​per ton has become a “chicken rib†that limits nitrogen fertilizer production enterprises.
According to the statistics of Zhongneng Company, as of May 18, the coal stocks of direct power supply plants were 21.091 million tons, a decrease of 166,000 tons compared with last week. In addition, apart from the tight supply of coal, China’s coal for metallurgy, chemical industry, and building materials is also in short supply. With coal supply continuing to be tight, coal prices have naturally continued to rise. In order to ease the tight coal supply situation in China, relevant state departments have taken measures to accelerate the acceptance of small coal mines for resumption of production and to “lock loose†small coal mines as soon as possible. Timely issuance of safety production licenses and recovery of small coal mines that meet safe production conditions.
Transport - tight!
Due to the pull of the Olympic economy and the impact of the Sichuan earthquake, the transportation situation has become increasingly tense.
A person in charge of a nitrogenous fertilizer company in Shanxi stated that except for some large-scale urea companies that have specialized transportation lanes, most companies in the province are difficult to apply for wagons and have poor transportation. At present, the demand for urea in Shanxi Province is not booming, and the inventory pressure of production enterprises has become apparent.
A sales manager of Inner Mongolia Wulashan Chemical Fertilizer Co., Ltd. said that due to the impact of the Sichuan earthquake, wagons are given priority to transporting relief supplies. The possibility of the most recent wagon approval is not high. The dealers are getting goods and are forced to use Qiyun, but the price of Qiyun increases due to rising oil prices. Costly, manufacturers and businesses are in a dilemma. Manufacturers have no choice but to backlog their inventory and distribute them to the following 20 sales outlets. However, the fertilizer season in the surrounding markets in Inner Mongolia has passed and it is difficult to stimulate demand for urea.
In addition, most highways in the north limit the use of six-axle trucks on the road. This has caused inconvenience to the automakers. The dealers heard the embargo of the trucks at the end of June and they were preparing goods early. A new round of urea panic hit again.
Source - tight!
According to statistics, from January to April, China exported a total of 3.0102 million tons of urea, which is more than four times the export volume of the same period of last year. This is the direct cause of the current tight urea and rising prices. From the current point of view, although the new tariffs have effectively limited exports, a large amount of outflows in the previous period caused the domestic market to become tense. Coupled with the arrival of fertilizer seasons all over the country, the urea market was “up and downâ€.
Starting from April 20th, exports are basically prohibited, but the export of urea under the original tariff in the port protection zone can be delayed until May 20, and a large amount of urea is still being exported. In addition, the introduction of new tariffs has caused dealers to adopt a wait-and-see attitude, and they have not dared to purchase a large number of goods. The reduction in the volume of urea transactions has caused the supply of goods on the market not to be effectively supplemented. Although urea prices rebounded, dealers began to purchase large quantities, but in terms of production, manufacturers are under pressure from rising raw materials and tight supply, which also makes the supply on the market even more tense. Since exports were basically banned before the fourth quarter, and even if the international market accepts China's high-priced urea, the possibility of the government adding special tariffs is also very high. Therefore, the impact of exports on the domestic market will not be considered for the time being. However, the supply on the domestic market is tense. There are also excessive pressures on costs and transportation, plus the demand for urea in the agricultural market in most areas around mid-June. There is still room for growth in the price of urea in the future.
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