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China: Price of winter storage fertilizer continues to rise

Over the past month, being affected by multiple factors such as increase in the price of raw material, the price of chemical fertilizer has been rising continuously. According to statistics, wholesale price index of China's chemical fertilizer has continued to rise for five weeks. In the current situation that price of chemical fertilizer is rising sharply, 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 market pullback is big, and the risk is obviously quite high.

At this moment, the compound fertilizer market is in the starting stage of winter storage fertilizer season, the players in the industry are very cautious in taking actions. But the price of raw material urea, phosphate fertilizer and potash fertilizer has increased sharply, in just two weeks time, ammonium companies in Hubei almost reached their limit", they temporarily stopped with providing the quotation or accepting the payments. The supplying of compound fertilizer is sufficient, but taking into consideration of lack of demand at the grassroots level, currently compound fertilizer companies are trying to rise the price of sulfur fertilizer, the increase is about 100RMB / ton.

In the “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 inquiring the price, they buyout most products at current price of autumn fertilizer. According to the forecast, specific price offer of winter storage fertilizer will be available at end of this month or beginning of next month, the average increase might be up to 200RMB / ton.

Source: Internet Agricultural People

Publication date: 11/30/2017



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