The Time Has Come? Compound Fertilizer Market Is About To Start
June 12, 2024, 9:21 AM
Agricultural Resources Herald
3112
Guide
Highlights at a glance
With autumn planting season approaching, downstream dealers and retailers are now compelled to replenish inventories after prolonged hesitation, as low social stock levels and delayed deliveries create tight supply conditions. The compound fertilizer market faces potential regional shortages and price firming, especially with urea—key raw material—showing signs of rebound due to production constraints and rising industrial demand. Although fertilizer prices have dropped from peaks, they remain high compared to previous years, prompting farmers to reduce compound fertilizer use amid widespread drought in major grain regions. To stimulate demand, manufacturers have launched promotional offers, signaling a shift in market dynamics. With improved sentiment and the possibility of tighter supplies, the stage is set for a near-term uptick in activity. Dealers are urged to act promptly, secure supplies, and prepare for the critical autumn sales window.
At present, in general, after a long wait and wait-and-see in the downstream, after the early inventory of the merchants is gradually digested, with the advent of autumn seeds, at this time, the dealers and retailers are "forced to Liangshan" by the market, and they have to consider the right amount and moderation. Replenish the warehouse and prepare fertilizer, and welcome the autumn market operation.
Due to the limited number of merchants who made payment and delivery in the early stage, many of them paid and did not deliver, and some did not pay or deliver, resulting in extremely low social inventory. Probably this autumn, the merchants purchased fertilizers in a concentrated and short period. There will inevitably be staged and regional supply shortages, or will lead to tighter prices.
From the perspective of compound fertilizer raw materials, we need to pay attention to the trend of urea. At present, there are power and production restrictions in some areas, and the daily production of urea remains low. Perhaps the urea market will rebound in the near future. Urea fluctuates frequently and is not surprising. As for how long it can rebound and how much it will rise, we also need to pay attention to factors such as power cut time, industrial demand, compound fertilizer factory procurement, and national fertilizer commercial reserves and policy orientation. If urea can stop falling and rebound, the bear market of compound fertilizer raw materials such as phosphorus and potassium will also change, which will boost market confidence, increase profit opportunities, reduce corporate risks, and reduce operating losses.
It is undeniable that the use of compound fertilizers will be reduced to varying degrees this autumn. The reason is the rare drought in the main grain-producing areas of the country this year, which will definitely affect autumn planting and reduce the amount of fertilizer used in autumn. In addition, although the price of nitrogen, phosphorus and potassium has fallen, especially nitrogen fertilizer has dropped by nearly 1,000 yuan / ton, the fertilizer is still hovering at a high level, which is much higher than the price of the previous two years. In this case, in addition to increasing the application of organic fertilizers and farmyard manures, the application of compound fertilizers will also be reduced or only small nitrogen fertilizers and small phosphorus fertilizers will be applied.
Recently, in order to break the stagnant and dull atmosphere of the market, compound fertilizer manufacturers have successively introduced promotion policies, and the prices have also been lowered accordingly. The author believes that the market will move soon, and the boom in supply and demand is coming. I hope that the majority of dealers will not miss the opportunity and business opportunities, prepare for fertilizer bravely, and fight the tough sales battle this autumn.
Due to the limited number of merchants who made payment and delivery in the early stage, many of them paid and did not deliver, and some did not pay or deliver, resulting in extremely low social inventory. Probably this autumn, the merchants purchased fertilizers in a concentrated and short period. There will inevitably be staged and regional supply shortages, or will lead to tighter prices.
From the perspective of compound fertilizer raw materials, we need to pay attention to the trend of urea. At present, there are power and production restrictions in some areas, and the daily production of urea remains low. Perhaps the urea market will rebound in the near future. Urea fluctuates frequently and is not surprising. As for how long it can rebound and how much it will rise, we also need to pay attention to factors such as power cut time, industrial demand, compound fertilizer factory procurement, and national fertilizer commercial reserves and policy orientation. If urea can stop falling and rebound, the bear market of compound fertilizer raw materials such as phosphorus and potassium will also change, which will boost market confidence, increase profit opportunities, reduce corporate risks, and reduce operating losses.
It is undeniable that the use of compound fertilizers will be reduced to varying degrees this autumn. The reason is the rare drought in the main grain-producing areas of the country this year, which will definitely affect autumn planting and reduce the amount of fertilizer used in autumn. In addition, although the price of nitrogen, phosphorus and potassium has fallen, especially nitrogen fertilizer has dropped by nearly 1,000 yuan / ton, the fertilizer is still hovering at a high level, which is much higher than the price of the previous two years. In this case, in addition to increasing the application of organic fertilizers and farmyard manures, the application of compound fertilizers will also be reduced or only small nitrogen fertilizers and small phosphorus fertilizers will be applied.
Recently, in order to break the stagnant and dull atmosphere of the market, compound fertilizer manufacturers have successively introduced promotion policies, and the prices have also been lowered accordingly. The author believes that the market will move soon, and the boom in supply and demand is coming. I hope that the majority of dealers will not miss the opportunity and business opportunities, prepare for fertilizer bravely, and fight the tough sales battle this autumn.
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June 12, 2024, 9:21 AM
June 12, 2024, 9:21 AM
