Fertilizer Price Trends Last Week

By CnAgri2013-11-18 11:32:14 Print Urea: Recently, the gloomy urea market finally stabilized and urea price rebounded in most areas supported by demand release in some areas, high international price and still heat container gate in. In Shandong, urea quotation raised. Container gate-in consumed some stocks. Besides, demand from NPK manufacturers also increased, promoting urea price to rebound. Influenced by price increase in Shandong, urea price increased slightly as well in surrounding provinces like Hebei and Shanxi. Urea quotation rose in Henan since off-season reserves is well caried out. In SW areas, operating rate kept low lack of gas, so market supply decreased. Winter reserve was slowly carried out in NE and quotation remained stable. Urea wholesale price also increased influenced by price rise in NC. Lack of momentum, urea market is predicted to remain fluctuating. (Figure 1)
 
ABC: ABC market remained stable with basically unchanged retail price. (Figure 2)
 
DAP: DAP market remained gloomy this week. There was a lot of inquiries in downstream, but few of them were closed. In November, most winter reserve policies have been published and payment in autumn was close to end. DAP winter reserve market followed the favorable policies in autumn, such as co-selling with dealers. Most traders have less confidence in later market. As for the outside disk, goods in bonded areas were consumed gradually but export in China went slowly due to high tariffs. Usually, inquiry would increase around phosphate compound fertilizer meeting. This year, sulfur price kept high and urea price increased slightly, increasing confidence of manufacturers. DAP market shall remain weak later but delivery will increase gradually. If the material price keeps strong, fertilizer market is likely to recover.  (Figure 3)
 
NPK: it is off-season of NPK and most manufacturers make maintenance during this period. Since winter reserve is likely to be put off, price shall decline RMB100-150/MT. With vast land and great demand for fertilizer, NE has always been a heat area for manufacturers. At local areas, large businesses have not only fixed network but also fixed suppliers, so price change has no big influences on their reserves. In the year-end, logistics and transportation are busy and winter reserve will be started in mid November, by when the price will be clear. (Figure 4)
 
MOP: domestic MOP market remained stable and price in border trade shall stabilize after previous slight increase. With adequate stocks in ports, trade went steady. Since traders are still cautious in purchasing and MOP is expected to arrive later, it is predicted MOP market shall adjust reasonably. (Figure 5)
 
SOP: SOP market remained strong and the price ran steady . (Figure 6)

From “China Fertilizer Market Weekly Report”