Compound Fertilizer Market Sluggish in China

By CnAgri2012-08-07 13:09:02 Print

Compound fertilizer price has been stable recently, with the producer’s price being RMB2,550 ~ 2,650/MT for chloride-based NPK with 45% nutrient and RMB2,750 ~2,850/MT for sulfur-based NPK with 45% nutrient. Moreover, buyers are generally granted a discount of RMB50/MT.

With the decline of urea and MAP price, the production cost of compound fertilizer is prone to drop in the short run, unable to prop up compound fertilizer price.

It is normally time for traders to build up a stock for fall planting. But, seeing no chance of a price recovery, traders are inactive in purchasing compound fertilizer from producers. As a result, producers are running at a low capacity. But producers are presumed to maintain a stable price to avoid losses.

From "China Fertilizer Market Weekly Report"