echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Agriculture News > Fertilizer News > Profits of elemental fertilizers such as urea are declining? Distributors prefer high-nitrogen compound fertilizers

    Profits of elemental fertilizers such as urea are declining? Distributors prefer high-nitrogen compound fertilizers

    • Last Update: 2022-03-03
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    Investigate and interview the urea and compound fertilizer markets in Jilin and Heilongjiang.
    Fertilizers for spring plowing in the two regions are nearing completion, and there will be a small amount of fertilizer demand for top-dressing in June.
    Changchun City, Jilin Province, Changchun City Mingyuan Agricultural Production Materials Co.
    , Ltd.
    Zhang Ye market analysis local spring plowing is nearing completion, and fertilizer will be ended in a week.
    At this stage, the prices of urea and compound fertilizers have fallen severely.
    Compared with the prices when spring plowing started in early March, they have dropped by about RMB 150/ton.
    In terms of sales volume, Zhang Ye said that it is still considerable.
    Although it has decreased by about 10% compared with the same period last year, the overall trend of fertilizers this year shows that under the multiple pressures of the cancellation of various preferential policies, fluctuations in raw material prices and environmental protection, the total It is not easy to reduce the amount by only 10%.
    The market outlook forecasts that in the next month, the fertilizer market will be in the off-season, and prices and sales will decline.
    Because the spring farming and fertilizer preparation period in Northeast China is about to end, there is no demand for fertilizer in the market in May, and it will not usher in early June.
    Fertilizer period in summer.
    Some large local growers will concentrate on purchasing fertilizer from April 25th to April 28th.
    The reason is that during this period, the fertilizer will enter the dumping stage, and it will be about 150 yuan cheaper per ton.
    Therefore, before the planting period, the big households do not rush to fertilize.
    Buy it when it's cheaper.
    Niu Xingtai market analysis of Heilongjiang Wudazhou Biotechnology Co.
    , Ltd.
    in Suihua City, Heilongjiang Province has completed two-thirds of the local spring farming fertilizer, and it is expected that the base fertilizer will be completed in mid-May.
    Heilongjiang was hit by severe drought from July to August last year, and nearly 30 million mu of land was reduced in production or even no harvest.
    This accounted for almost one-fifth of Heilongjiang's arable land.
    Coupled with low corn prices, corn growers basically lost money.
    So this year, many farmers switched to planting soybeans.
    The amount of soybean fertilizer used was only 2/3 of the amount of fertilizer used for corn.
    Coupled with the low price of corn, farmers were not enthusiastic about farming, resulting in a 20% decrease in fertilizer sales this year compared to the same period in previous years.
    The market outlook predicts that local farmers will use blended fertilizers as the main fertilizer, so there are many blended fertilizer manufacturers in the local area.
    Every year in this season, most manufacturers do not have inventory, and they all produce according to orders.
    At present, the quotations of various blended fertilizer manufacturers have basically dropped by 150 yuan/ton, and it is expected that it will fall in the later period, and phosphorus and nitrogen are still surplus.
    Due to climatic reasons, the fertilizer use in Heilongjiang was later than in Jilin and Liaoning.
    After the fertilizer use in Liaoning and Jilin was finished, the fertilizer was dumped to Heilongjiang, which caused the price of fertilizer in Heilongjiang to drop.
    This has become a law.
    Qi Changjiang Market, Qiqihar City, Heilongjiang Province Qinong Agricultural Materials Chain Co.
    , Ltd.
    analyzes that local farmers use BB fertilizers as the most fertilizer, and some farmers use compound fertilizers or mix fertilizers by themselves.
    This year's fertilizer sales have decreased by about 20% compared with previous years, mainly because local farmers have no habit of saving money.
    Most of them spend as much money as they have in their hands.
    Even if they don't invest in farming, they consume in other ways.
    However, last year the farmers failed to harvest, coupled with low food prices, the cost of farming input by the farmers could not be recovered, and the funds in hand were insufficient, so this year's enthusiasm for farming was low and the amount of fertilizer applied was reduced.
    The market outlook predicts that corn, rice and vegetables are mainly grown in the local area.
    Fertilizer use in spring is coming to an end.
    Fertilizer use will end around May 10.
    In June, there will be a small amount of fertilizer demand for topdressing, by then the local annual fertilizer use will basically end.
    The current price of compound fertilizer manufacturers has been higher than the wholesale price in the local market, but because the local fertilizer is about to end, the fertilizers sold before are mainly pre-stocked, so the current ex-factory price is of no practical significance to the local, so the ex-factory quotation is basically ignored.
    Market analysis by Zhu Zhongfu, Jilin City, Jilin City, Jilin Province, China-Germany Agricultural Production Materials Co.
    , Ltd.
    After the price increase of urea this year due to the sharp increase in raw material prices after the year, the spring sales volume has decreased compared with previous years, and farmers and dealers are also more enthusiastic about getting goods.
    Not as good as before.
    In addition, due to the low price of corn last year and the outbreak of farmers’ difficulty in selling, the enthusiasm of farmers to buy fertilizer was greatly reduced this year.
    At present, spring plowing is about to end, and dealers still have some undigested inventory.
    Judging from the current situation, dealers will still have a serious wait-and-see mood when fertilizer is used in the summer.
    The market outlook predicts that the use of fertilizer in the Northeast is generally later than in other regions, and the spring plowing that has lasted for nearly two months will come to an end.
    On the whole, the amount of fertilizer used in the local area has been significantly reduced this year, the price of corn is low, and the area planted with cash crops in the local area is small, the economic income of farmers relying on farming is far worse than in the south.
    In addition, farmers who used to grow corn in large areas have also tried to plant some high value-added crops this year.
    It is expected that the Fei market will be in the off-season before the end of May, and demand, sales volume, and prices are ignored.
    miss you.
    The reporter commented that the planting structure has changed in some areas of the two places this year, mainly because the price of corn has fallen severely.
    The reporter found that due to the low profit or even loss of elemental fertilizers such as urea, many distributors tend to sell higher-profit high-nitrogen compound fertilizers.
    There are also dealers who analyze from the perspective of farmers.
    They believe that the input costs are equivalent, but the yield and quality are different, so farmers are more willing to buy high-nitrogen compound fertilizers.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.