Why Did Fertilizer Prices Witness Varying Levels of Growths?

By CnAgri2018-10-17 16:07:40 Print The prices of fertilizer products such as urea, MAP and DAP have witnessed varying levels of growths for two month. Of which the growth of urea prices has exceeded 250 RMB/MT, and the growth of MAP and DAP has also approached to 100 RMB/MT. The growth in fertilizer prices is mainly influenced by the factors mentioned below: 
In terms of urea, in August, driven by the demand from industry, urea prices rebounded and the national average price went up from 1,808 RMB/MT. Then, influenced by overhauls and limitations on power in some areas, urea prices kept ascending. In September, an increase in international urea prices pushed up domestic prices, especially, the price of bidding invited by India during the National Day reached 356 US dollars/MT (CFR), which pushed up domestic urea prices greatly. Currently, the average ex-factory price of urea has reached 2,081 RMB/MT.    
In the aspect of P-fertilizer, the prices of raw materials such as sulfur and ammonia kept increasing, of which the average price of solid sulfur increases to 1,300 RMB/MT now from 1,150 RMB/MT in middle August, and the prices of ammonia also go up to 3,560 RMB/MT from 3,100 RMB/MT. Owing to an increase in production costs, MAP and DAP prices also show the increasing trends, and current prices average at 2,298 RMB/MT and 2,663 RMB/MT respectively.   
Influenced by the factors mentioned above, the prices of urea, MAP and DAP have mentioned at a high level, however, in the present situations, BOABC’s analysts think: influenced by international market, domestic urea prices would stay firm. Owing to high material costs and the starting of winter storage, MAP and DAP prices would continue to go up.