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In May, the compound fertilizer market was difficult to replicate the good trend in April, but due to the cost pressure, the price will remain high, and the market has certain risks.
From the demand point of view, the market demand for spot is not as large as in April. Following the northeast and northwest, the fertilizer preparation link in the South China market is also drawing to a close. At present, only some markets in the southwest and central China regions still have some needs, and mainly Terminal farmers' needs. The dealers already have a lot of goods in their hands and do not need to purchase a lot from the manufacturers, mainly to replenishment. The demand for high-nitrogen fertilizers for corn in Henan, Shandong, Hebei, etc. is relatively large, but if the price is too high, it will affect the progress of fertilizer preparation.
Overall, the market risk of compound fertilizer in May increased. As prices continue to rise, many compound fertilizer manufacturers find it difficult to deal with new prices, and most of them deal with pre-orders. Constrained by the weakening of demand, some compound fertilizer manufacturers have been forced to reduce the production load, and the operating rate has decreased by about 30%. As the state controls the export, the export factor will not play a significant role in supporting the urea market.
Nitro-sulphur compound fertilizers began to show their price advantage. Due to the weaker trend of ammonium nitrate prices this year, the highest price of ammonium nitrate reached the factory price of compound fertilizers reached 2,600 yuan last year, but it is currently only around 2,300 yuan. The decline in price has reduced the production cost of nitrate-based compound fertilizers, and the production of nitrate-based compound fertilizers. The spread between the price and ordinary compound fertilizer has been significantly reduced. The recent shipment of sodium thiosulfide is good and has become a bright spot in the compound fertilizer market.
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