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Along with An Increase in Prices of All Raw Materials, What Trend Would NPK Prices Show?

China Agriculture Report By CnAgri2017-11-02 10:39:50China Agriculture Report Print The prices of raw materials for NPK all increase. 
(1) Urea prices go up. Influenced by an increase in coal prices, the pressure of environmental protection, fertilizer bid-inviting by India, production limitation and suspension resulting from the 19th National Congress of the Communist Party of China, and production limitations because of environmental protection “2+26”, urea prices have kept increasing sharply since middle August. Currently, the main ex-factory prices of urea increase 200 RMB/MT to 1,700 RMB/MT, the highest in the last two years.    
(2) MAP prices ascend. Thanks to an increase in prices of raw materials such as sulphur and phosphate rock and a relatively good demand at home and abroad, MAP prices have greatly rose since October, and reach to 2,000 RMB/MT (highest in the last two years) with an average growth of more 130 RMB/MT.
(3) SOP prices increase. Due to environmental protection and HCI stock saturation, the average growth ranges at 20-50 RMB/MT. Currently, the average price of 50% powdery and 50% granular SOP (Mannheim) is around 2,600 RMB/MT and 2,710 RMB/MT.   
Although material prices increase greatly, yet, because of the end of demand for autumn fertilizer and no starting-up of fertilizer for winter reserves, NPK prices didn’t see a great increase and the overall price maintained stable. The national average price of 45%CL and 45%S NPK was respectively 1,925 RMB/MT and 2,187 RMB/MT. 
NPK producers bear huge market pressure, and individual NPK companies start to raise their quotations, but, judging from the long term, along with the increasing of operating rate of urea companies and the releasing of winter reserve market, NPK prices would return to a normal and rational level. 
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