The domestic phosphate fertilizer market begins to recover
- Categories:MEDIA FOCUS
- Author:
- Origin:China Fertilizer Net
- Time of issue:2015-02-22 14:10
- Views:0
(Summary description)In 2014, my country's phosphate fertilizer market, like the international market, struggled to climb through price troughs. Since the second half of last year, prices have gradually shown signs of stabilization and recovery. It is expected that they will gradually enter a period of recovery starting in 2015.
The domestic phosphate fertilizer market begins to recover
(Summary description)In 2014, my country's phosphate fertilizer market, like the international market, struggled to climb through price troughs. Since the second half of last year, prices have gradually shown signs of stabilization and recovery. It is expected that they will gradually enter a period of recovery starting in 2015.
- Categories:MEDIA FOCUS
- Author:
- Origin:China Fertilizer Net
- Time of issue:2015-02-22 14:10
- Views:0
In 2014, my country's phosphate fertilizer market, like the international market, struggled to climb through price troughs. Since the second half of last year, prices have gradually shown signs of stabilization and recovery. It is expected that they will gradually enter a period of recovery starting in 2015.
Domestic phosphate fertilizer prices have remained stable since the beginning of this year. It seems that companies and distributors are satisfied with the current temporary prices. Taking diammonium phosphate as an example, the arrival price of 64% diammonium in Northeast China is 2900-3050 yuan/ton, and the arrival price of 64% diammonium in Gansu and Inner Mongolia is 2900-3000 yuan/ton. In the pre-holiday market, diammonium remained stable, and companies had ample orders to be issued. Most of them could be maintained until after the Spring Festival. Some company orders have been signed until March, and it is an inevitable choice to stop taking orders.
From the perspective of supply, the arrival of diammonium in the domestic winter storage market continues to increase, and the transaction of new orders for companies has slowed down, and the implementation of pre-orders is mostly based. Although the uniform tariffs benefit exports throughout the year, under the guidance of the fertilizer winter storage policy, the main domestic supply in winter is still the best choice for enterprises. Southwestern enterprises have a large amount of winter reserves, and some enterprises have tight supply. The export order is still under further negotiation, and the enterprise gathering in the port has not yet started. The price of sulfur as a raw material for diammonium has remained stable at a high level recently, supporting the price of diammonium to a certain extent.
The National Development and Reform Commission recently announced an increase in railway freight prices, but this policy change has limited impact on the domestic diammonium market. Due to the recent sharp drop in oil prices, lower automobile transportation costs, increased automobile transportation radius, and shipping from Hubei to Northeast China, rail transportation has no obvious advantages for some regions.
From the perspective of demand, the grassroots market is less motivated to purchase. Downstream dealers are currently mainly receiving goods, and rarely distribute goods to the grassroots market. It is unlikely that traders will replenish goods again in the short term. The international diammonium market demand is not strong. Although diammonium companies have received orders, the overall small orders are mostly small, which is of little significance to the diammonium market.
From the perspective of the international market, the international price of diammonium remained stable overall. Among them, the FOB price of Tampa Port in the United States is US$486-488/ton, the low-end is stable, and the high-end price is up by US$2/ton; the FOB price of Morocco is US$531-536/ton, stable; the Baltic/Black Sea FOB price It is 471-506 US dollars/ton, stable; China FOB price is 466-471 US dollars/ton, stable.
From the perspective of import and export data, domestic phosphate fertilizer exports are expected to reach a new level. According to customs statistics, my country’s total export of diammonium phosphate in 2014 was 4,882,100 tons, a year-on-year increase of 27.8%; among them, exports of 735,200 tons in December, a month-on-month increase of 16.2%. In 2014, the main exporting countries (or regions) of my country's DAP were India (32.0%), Pakistan (16.6%) and Vietnam (14.2%). From this point of view, international ammonium phosphate prices are firm, and the rapid recovery of the Indian market has brought confidence to manufacturers. In 2015, my country's export of diammonium phosphate is likely to continue to rise in volume and price, and the positive export is expected to support the domestic phosphate fertilizer market.
The Spring Festival this year is late. Generally, the spring market is the peak season for phosphate fertilizer sales. Soon after the Spring Festival is spring ploughing. Therefore, the demand from the grassroots level will soon stimulate the market and be reflected in the price. It is expected that the phosphate fertilizer market may see an increase of more than 100 yuan/ton after the holiday.
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