Fertilizer market is expected to continue to rise in the short term

At the beginning of May, the overall domestic and international fertilizer market was picking up, and the prices of nitrogen fertilizer, phosphate fertilizer, potash fertilizer, and compound fertilizer were all rising. At present, the domestic ex-factory price of urea is mainly concentrated at 2,200 yuan (ton price, the same below), and about 3,275 yuan for diammonium phosphate, 95% potassium chloride at 3,100 yuan, and compound fertilizer at 2,740 yuan. Distributors and manufacturers generally stated that driven by multiple factors such as higher prices of international fertilizers, rising prices of current raw materials, and increased rigid demand, it is expected that domestic fertilizer prices will continue to rise.

Costs block down space

Since the fourth quarter of last year, as a result of strict energy-saving emission reduction assessments, the prices of raw materials such as coal and natural gas have risen, causing the production cost of enterprises to increase. At present, their prices remain high and there are no signs of loosening.

The operating rate of domestic urea companies was low, which was more than 70% for more than half a year, resulting in a decrease in market supply compared with previous years. May was the maintenance period for urea manufacturers in Shandong. About 45% of the devices were in production, and the decline in output was also a factor in the rise in urea prices. According to data from China Nitrogen Fertilizer Industry Association, nearly 1/6 of urea production capacity in the country was suspended in April, and 73 out of 174 companies suffered losses. At the same time, the yellow phosphorus industry suffers from restrictions on production and other factors. Recently, the domestic price of phosphate rock has been raised overall. The price adjustment in Hubei has been relatively large, with an average increase of 20 to 40 yuan. Prices in Guizhou and Yunnan have also risen steadily. There is also sulfur, the data show that from January to May this year, China's imports of sulfur prices rose from 185 US dollars to 250 US dollars, an increase of more than 30%.

The rise in upstream raw material prices is bound to be transmitted downstream, which may increase the price of fertilizers. Many fertilizer companies are forced to lower their load production or stop production due to “orderly use of electricity”, which indirectly drives up fertilizer prices.

Demand releases upward momentum

Due to the previous up to the provincial wholesalers, down to the grassroots dealers are not optimistic about the urea market, wait and see mood is strong, stocking is very cautious, no inventory, farmers are basically with the use of the purchase, resulting in the lack of social inventory after the release of market demand . Potash stocks in the international market are also at a low level. From January to April of this year, potash stocks in North America are less than 2 million tons, which is lower than the average level in the past few years.

At present, the enthusiasm of merchants for preparing fertilizer increases June and July are the rice seasons in East China and Central China, and are also the stage for preparation of corn in northern China. Compound fertilizers, diammonium phosphate, and other markets will usher in rising prices, and the increase in terminal demand will drive up market prices.

External disk stimulates bargaining behavior

At present, the urea bullish factors in the international market are high. With the advent of the fertilizer season in Brazil, the current price of urea in the Brazilian market has risen to US$390 (onshore), and in the first four months of this year Brazil imported 8.1 million tons of urea, an increase of 175,000 tons year-on-year; The urea CIF price has also now risen to US$435; there is a shortage of small granular urea in the Vietnam market.

In terms of the domestic market, Sinochem’s contract for the first half of the year is approaching and the renegotiation period is approaching. In the second half of the year, China’s potash import contract price may rise. At present, the international potash fertilizer price is above 510 US dollars (CFR), which is higher than the import contract price of 400 US dollars (CFR) in the first half of this year. At the same time, domestic potash fertilizers are currently under tight transportation, and about half of the potash fertilizer in salt lakes cannot be shipped out every month. The domestic market has a stronger wait-and-see attitude. Traders and manufacturers are waiting for the outcome of the negotiation of a large contract.

On June 1st, the monoammonium phosphate and diammonium phosphate exports first entered the low-tariff period, and 7% of the low tariffs were implemented below the benchmark price. At present, international urea prices have gradually come out of the trough and continue to rise. The export of urea is a good news. From July 1, urea exports also entered the low-tariff period, which is also the implementation of a low tariff of 7% below the benchmark price. Compared with the current high export tariff of 110%, the tax rate in the low-tariff period is greatly reduced, and it is very favorable for exports. Many companies are expecting fertiliser exports.

Optical Brightener

Many industries have begun to use optical brighteners, such as paper, plastics, leather, and detergents. At the same time, fluorescent whitening agents are also used in many high-tech fields, such as fluorescence detection, dye lasers, anti-counterfeiting printing, etc., and even high-sensitivity films for high-altitude photography. In order to improve the sensitivity of photosensitive latexes, fluorescence is also used. Brightener.
In China, optical brighteners were first classified as printing and dyeing auxiliary products, and then classified as dye products. Due to its unique properties and large amount of demand, it has been separated from the above two industries and has become a separate class of fine chemical products. The first largest user of domestic fluorescent whitening agents is detergents, the second largest user is paper, and textiles are the third largest user.

Optical Brightener,Fluorescent Brightener,PVC Brightener,Optical Whitener,Brightening Agent

Yucheng Jinhe Industrial Co.,Ltd , https://www.hncarbonblack.com