Will fertilizer become more expensive after Chinese Spring Festival?

The market conditions for fertilizer have not improved with the arrival of a new year. The market for raw material is weak and so is the price of compound fertilizer. In some areas the price is falling, but not enough to attract the attention of visiting traders.

The market for the winter stock of fertilizer is in a deadlock. The main reason for this situation is the weak market for raw material. Another reason is the less than ideal price of agricultural products. Retailers are hesitant to trade in fertilizer, and some factory owners consider lowering their price to break the deadlock, but they find this difficult to accomplish. The profit margin is limited in the short term, and the market may become even weaker as a result of developments in the market for raw material.

One of the main battlefields for the fertilizer market is in the northeast of China. Although the market is not ideal at the moment, people have high hopes for market development after Chinese Spring Festival [February 5th, 2019]. As the market becomes more active after the festival period is over, demand could gradually increase. If conditions in the raw material market and in transport remain stable, then the price of compound fertilizer will become stronger. Still, it is unlikely that supply will be short.

Source: Fruit Service Center

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