The price of chemical fertilizers that slumped for nearly a year suddenly went "outbreak", leaving many manufacturers caught off guard. Some dealers and small compound fertilizer manufacturers are at a loss in the face of rising prices. Some manufacturers have already suffered serious losses in this wave of price increases; some regions have appeared In the situation of out of stock, although manufacturers are trying their best to make orders, fertilizer companies are also somewhat confused about the situation of this off-season price increase.
Many industry insiders analyzed: This is mainly due to the effects of national industrial adjustment and international market pull. This wave of rebound is actually the value of chemical fertilizers returning to long-term undervaluation after the financial crisis ends. With the past of the fertilizer season and prices running at high levels, the market in the manufacturer’s game should fall into a wait-and-see state for a certain period of time, which will not result in sufficient momentum for this price increase.
Multiple factors make fertilizer prices warmer Yang Chunsheng, chairman of the Shandong Chemical Fertilizer Industry Association, believes that: “In the second half of the year, the fertilizer industry is greatly affected by the national industrial adjustment. This price increase is an adjustment effect.†Shandong Cailun Zhongke Fertilizer Industry Co., Ltd. Manager Hao Jiuqiang said: "Under the pressure of the national policy on energy saving and consumption reduction, many companies have cut production or even stopped production, resulting in a reduction in the supply of enterprises."
The strong pull of the international market is also an important reason. Yang Chunsheng believes: “This pulling action is mainly a kind of psychological expectation, and it is a psychological impact of the price of food** on the fertilizer market.†In the recent period, natural disasters have frequently occurred around the world, and grain output has become a hot news. International food* * Pulling prices has affected the trend of fertilizer prices. In addition, the advent of the traditional autumn fertilizer season also provided a support for the soaring fertilizer prices. With the end of the northern wheat planting, this support will no longer exist.
Fertilizer prices rise, so that the fertilizer companies struggling to support a year, such as a long drought every rain, so that small and medium-sized fertilizer companies "hungry belly", but also let a lot of dealers holding cash for manufacturers to supply. Due to the rapid price increase, some distributors and enterprises have seen the phenomenon of raw material and product prices hanging upside down, facing losses and even life and death. Due to the fact that the peak season for fertilizer use in most parts of northern China has passed, farmers' users have not been affected by this increase in prices.
According to statistics from the Shandong Chemical Fertilizer Industry Association, in the previous months, less than five fertilizer companies remained profitable in Shandong Province; this round of price increases, dragging fertilizer companies out of the sluggish quagmire, and currently the entire industry’s profit and loss are flat, but the loss Still not small. "The recovery of prices has risen, and I think it is reasonable and beneficial to the development of the industry." Yang Chunsheng said. Jiang Jitao, deputy general manager of Luxi Group, told the reporter: “The days of compound fertilizer production companies are still good. Because there are usually sufficient stocks and large quantities of goods, they are all riveting production, and production and sales have never been interrupted. The enthusiasm of the money is high and it is in a period of boom; while some small manufacturers can not only not get raw materials, but are also quickly dragged down by the price." In Henan, Shandong and other places, some small manufacturers and businesses signed a contract, either Upon arrival, they either discovered that the price of raw materials had exceeded the sales price of the contract and had to suffer huge losses. Liu Jingdi, manager of Shandong Zoucheng Fengshou Fertilizer Co., Ltd., also confirmed that some small manufacturers cannot use the money to order raw materials. “A few million dollars at a time, big raw material companies are not on the list.†Some dealers also told reporters As soon as the loan was withdrawn, we went to buy the goods. Due to the active demand of merchants, some big compound fertilizer plants also appeared to be in a situation where delivery was not timely, which further exacerbated the price increase.
Continuing the rise will continue Jiang Jitao's view: Prices have risen in the traditional off-season, indicating that the policy factors are very direct and are not purely market phenomena. Therefore, some people think that once the policy is adjusted, this influence will inevitably decline. If the state of oversupply of the industry is not fundamentally reversed, there will be downward pressure on prices. More people think that it is not easy to say, but it is generally recognized that “the external factors such as the international market cannot provide solid support for the further rebound of fertilizer pricesâ€; the fertilizer industry cannot expect to rely on this wave of rebound to get out of the predicament and deepen it. After the industrial adjustment at the level, the real spring will come. Some people still insist that raw materials and energy prices will rise in the long term, pushing up fertilizer prices.
Liu Jingdi believes that once this year’s industrial policy adjustments are “slack†for the fertilizer industry, the increase in output may make the biggest impetus for price increases disappear. However, he also stated that: The price of chemical fertilizers should be synchronized with the coal price, electricity price, and grain price. The current price is still less than a reasonable level, and it is reasonable to go further. Many dealers believe that price increases will continue, and their basis is also driven by rigid costs. Gao Jinghong, deputy general manager of Hualu Hengsheng Company, said: "I have heard that the Northeast market has been started and that goods are relatively positive. If the enthusiasm of the business continues, I am afraid the price will not fall for a while."
Many industry insiders analyzed: This is mainly due to the effects of national industrial adjustment and international market pull. This wave of rebound is actually the value of chemical fertilizers returning to long-term undervaluation after the financial crisis ends. With the past of the fertilizer season and prices running at high levels, the market in the manufacturer’s game should fall into a wait-and-see state for a certain period of time, which will not result in sufficient momentum for this price increase.
Multiple factors make fertilizer prices warmer Yang Chunsheng, chairman of the Shandong Chemical Fertilizer Industry Association, believes that: “In the second half of the year, the fertilizer industry is greatly affected by the national industrial adjustment. This price increase is an adjustment effect.†Shandong Cailun Zhongke Fertilizer Industry Co., Ltd. Manager Hao Jiuqiang said: "Under the pressure of the national policy on energy saving and consumption reduction, many companies have cut production or even stopped production, resulting in a reduction in the supply of enterprises."
The strong pull of the international market is also an important reason. Yang Chunsheng believes: “This pulling action is mainly a kind of psychological expectation, and it is a psychological impact of the price of food** on the fertilizer market.†In the recent period, natural disasters have frequently occurred around the world, and grain output has become a hot news. International food* * Pulling prices has affected the trend of fertilizer prices. In addition, the advent of the traditional autumn fertilizer season also provided a support for the soaring fertilizer prices. With the end of the northern wheat planting, this support will no longer exist.
Fertilizer prices rise, so that the fertilizer companies struggling to support a year, such as a long drought every rain, so that small and medium-sized fertilizer companies "hungry belly", but also let a lot of dealers holding cash for manufacturers to supply. Due to the rapid price increase, some distributors and enterprises have seen the phenomenon of raw material and product prices hanging upside down, facing losses and even life and death. Due to the fact that the peak season for fertilizer use in most parts of northern China has passed, farmers' users have not been affected by this increase in prices.
According to statistics from the Shandong Chemical Fertilizer Industry Association, in the previous months, less than five fertilizer companies remained profitable in Shandong Province; this round of price increases, dragging fertilizer companies out of the sluggish quagmire, and currently the entire industry’s profit and loss are flat, but the loss Still not small. "The recovery of prices has risen, and I think it is reasonable and beneficial to the development of the industry." Yang Chunsheng said. Jiang Jitao, deputy general manager of Luxi Group, told the reporter: “The days of compound fertilizer production companies are still good. Because there are usually sufficient stocks and large quantities of goods, they are all riveting production, and production and sales have never been interrupted. The enthusiasm of the money is high and it is in a period of boom; while some small manufacturers can not only not get raw materials, but are also quickly dragged down by the price." In Henan, Shandong and other places, some small manufacturers and businesses signed a contract, either Upon arrival, they either discovered that the price of raw materials had exceeded the sales price of the contract and had to suffer huge losses. Liu Jingdi, manager of Shandong Zoucheng Fengshou Fertilizer Co., Ltd., also confirmed that some small manufacturers cannot use the money to order raw materials. “A few million dollars at a time, big raw material companies are not on the list.†Some dealers also told reporters As soon as the loan was withdrawn, we went to buy the goods. Due to the active demand of merchants, some big compound fertilizer plants also appeared to be in a situation where delivery was not timely, which further exacerbated the price increase.
Continuing the rise will continue Jiang Jitao's view: Prices have risen in the traditional off-season, indicating that the policy factors are very direct and are not purely market phenomena. Therefore, some people think that once the policy is adjusted, this influence will inevitably decline. If the state of oversupply of the industry is not fundamentally reversed, there will be downward pressure on prices. More people think that it is not easy to say, but it is generally recognized that “the external factors such as the international market cannot provide solid support for the further rebound of fertilizer pricesâ€; the fertilizer industry cannot expect to rely on this wave of rebound to get out of the predicament and deepen it. After the industrial adjustment at the level, the real spring will come. Some people still insist that raw materials and energy prices will rise in the long term, pushing up fertilizer prices.
Liu Jingdi believes that once this year’s industrial policy adjustments are “slack†for the fertilizer industry, the increase in output may make the biggest impetus for price increases disappear. However, he also stated that: The price of chemical fertilizers should be synchronized with the coal price, electricity price, and grain price. The current price is still less than a reasonable level, and it is reasonable to go further. Many dealers believe that price increases will continue, and their basis is also driven by rigid costs. Gao Jinghong, deputy general manager of Hualu Hengsheng Company, said: "I have heard that the Northeast market has been started and that goods are relatively positive. If the enthusiasm of the business continues, I am afraid the price will not fall for a while."
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