August is the traditional low season for China's fertilizer market. However, in this off-season this year, fertilizer products have unexpectedly risen. In August, especially since mid-August, prices of almost all chemical fertilizers represented by monoammonium phosphate in China have risen. According to analysis, the biggest reason for this round of fertilizer price increases was export pull.
According to relevant media reports, by mid-August, urea prices in most parts of the country had risen by 20 to 70 yuan/ton. Among them, the mainstream of small particles of urea Hebei factory price 1570 ~ 1580 yuan / ton, Henan, Shandong, Shanxi factory price 1580 ~ 1630 yuan / ton, large particle urea factory price has risen to 1700 ~ 1720 yuan / ton. In the northwestern region, the mainstream price in Shaanxi is 1,650 yuan/ton, the mainstream transaction in Xinjiang is 1,600 yuan/ton, and the mainstream factory price in Gansu and Ningxia is 1,550 yuan/ton. The mainstream factory prices in Sichuan, Chongqing and Guizhou are 1,600-1,650 yuan/ton, and a few high-end offers are 1,700 yuan/ton.
The price of urea rose, and compound fertilizer with urea as raw material also rose. Not only are companies with low initial price quotations gradually increasing prices, but even a few manufacturers with high initial positioning have raised their offers to varying degrees. At present, the domestic 45% chlorine-based compound fertilizer mainstream factory price in 1850 ~ 1900 yuan / ton, 45% * base factory price of compound fertilizer in the 2100 yuan / ton, the increase is generally 30 to 50 yuan / ton range, individual manufacturers even A one-time price increase of 100 yuan / ton.
The most typical monoammonium phosphate has risen by 200 yuan per ton since July.
Industry insiders have attributed this round to international demand. Since the beginning of this year, extreme weather on a global scale has led to a strong output reduction in global agricultural products. Concerns over food shortages have triggered an increase in the demand for international fertilizers. This prompted the international fertilizer prices to rise. In mid-August, the urea Baltic FOB (FOB) rose from US$245/tonne to US$275/tonne, and urea FOB rose from US$253/tonne to US$278-290/tonne. This has led to an increase in domestic exports of urea. Analysts at China Merchants Securities pointed out that the domestic price advantage of urea in the international market led to a surge in international orders in Shandong, Shanxi, Hebei, and Jiangsu. In the middle of August, new orders even exceeded 300,000 tons. The large volume of transactions and rising prices of fertilizer export orders directly led to an increase in domestic prices.
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