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On July 5, 2019, it finally ushered in the exact news of urea futures.
The China Securities Regulatory Commission approved the Zhengzhou Commodity Exchange to launch urea futures trading.
The contract was officially listed for trading on August 9, 2019.
? If chemical fertilizer is the food of agriculture, urea is the food of food.
As the weather vane of chemical fertilizers, urea prices fluctuate frequently, and the rise and fall of urea prices directly affect the profit and mentality of the entire chemical fertilizer industry.
In the past, urea price fluctuations were mostly controlled by urea manufacturers.
Traders also bought at low prices and sold at high prices for arbitrage.
However, the risks borne by traders in the ever-changing market are also increasing.
After urea is listed on futures, whether it is a manufacturer or a trading company, there is an additional way to avoid risks.
Trading companies can also reduce losses and increase profitability by arranging treasures.
? Looking at the development history of the urea industry, it can be said that it has experienced a roller coaster-like change.
Before 2009, the urea market was simply based on government-guided prices, supplemented by market regulation.
Moreover, before 2009, information companies had relatively little accumulation of urea-related data, but it is certain that as of 2009, the production capacity of urea was less than 65 million tons.
After 2010, the ten years of rapid development of urea is also a state in which urea has experienced steady growth in production capacity, concentrated release of production capacity to the elimination of backward production capacity, and gradually returned to a state of supply and demand balance.
Among them, urea production capacity increased steadily from 2010 to 2012, from 66 million tons of urea production in 2010 to 72 million tons in 2012.
Although production capacity has grown steadily, output growth has been relatively slow.
From 2013 to 2015, urea production capacity was released intensively.
In the past three years, domestic urea production has rebounded significantly, and the domestic urea supply exceeds demand.
Even in the case of a large export volume every year, the contradiction between domestic urea supply and demand is still prominent, and the price of urea has fallen again and again.
Many companies are losing money and have to restructure.
In 2015, the country proposed supply-side reforms, and the urea industry was also significantly affected in this context.
Outdated production capacity is eliminated, and low-cost urea devices such as space furnaces are newly installed to reduce the overall cost of the urea industry.
The supply and demand of urea gradually return to a state of balance between supply and demand.
As of the beginning of 2019, the domestic urea production capacity was 70.
19 million tons, and the operating rate was basically maintained at around 70%, which means that the output remained around 49 million tons.
In 2018, my country's total industrial and agricultural demand was 50.
87 million tons.
At present, the overall domestic urea supply and demand has reached a relatively balanced state of supply and demand.
? From 2020 to 2022, there will still be some new urea production capacity in the next three years.
Among them, about 3 million tons of urea production capacity will be released in 2020.
The future urea supply and demand will be another challenge.
The listing of urea products on futures in 2019 has increased the volatility of the urea market in the future and the possibility of investment profits.
? There is still one month left before the urea futures are listed.
Urea, as the only chemical fertilizer that is listed on the futures, is also providing a new direction and development for the development of the chemical fertilizer industry.
Some industry analysts believe that the listing of urea futures can provide forward price signals for the industry to guide spot operations, and companies can sign forward settlement purchase and sales contracts based on futures prices.
It can be said that the listing of urea futures will bring new pricing and trade models to the fertilizer industry.
However, many urea manufacturers and traders do not have relevant experience in futures operations, and are still in the learning stage.
In the early stage of futures listing, investors should study futures trading rules and combine the trend of the spot market, and do not invest blindly to avoid additional Loss.
The China Securities Regulatory Commission approved the Zhengzhou Commodity Exchange to launch urea futures trading.
The contract was officially listed for trading on August 9, 2019.
? If chemical fertilizer is the food of agriculture, urea is the food of food.
As the weather vane of chemical fertilizers, urea prices fluctuate frequently, and the rise and fall of urea prices directly affect the profit and mentality of the entire chemical fertilizer industry.
In the past, urea price fluctuations were mostly controlled by urea manufacturers.
Traders also bought at low prices and sold at high prices for arbitrage.
However, the risks borne by traders in the ever-changing market are also increasing.
After urea is listed on futures, whether it is a manufacturer or a trading company, there is an additional way to avoid risks.
Trading companies can also reduce losses and increase profitability by arranging treasures.
? Looking at the development history of the urea industry, it can be said that it has experienced a roller coaster-like change.
Before 2009, the urea market was simply based on government-guided prices, supplemented by market regulation.
Moreover, before 2009, information companies had relatively little accumulation of urea-related data, but it is certain that as of 2009, the production capacity of urea was less than 65 million tons.
After 2010, the ten years of rapid development of urea is also a state in which urea has experienced steady growth in production capacity, concentrated release of production capacity to the elimination of backward production capacity, and gradually returned to a state of supply and demand balance.
Among them, urea production capacity increased steadily from 2010 to 2012, from 66 million tons of urea production in 2010 to 72 million tons in 2012.
Although production capacity has grown steadily, output growth has been relatively slow.
From 2013 to 2015, urea production capacity was released intensively.
In the past three years, domestic urea production has rebounded significantly, and the domestic urea supply exceeds demand.
Even in the case of a large export volume every year, the contradiction between domestic urea supply and demand is still prominent, and the price of urea has fallen again and again.
Many companies are losing money and have to restructure.
In 2015, the country proposed supply-side reforms, and the urea industry was also significantly affected in this context.
Outdated production capacity is eliminated, and low-cost urea devices such as space furnaces are newly installed to reduce the overall cost of the urea industry.
The supply and demand of urea gradually return to a state of balance between supply and demand.
As of the beginning of 2019, the domestic urea production capacity was 70.
19 million tons, and the operating rate was basically maintained at around 70%, which means that the output remained around 49 million tons.
In 2018, my country's total industrial and agricultural demand was 50.
87 million tons.
At present, the overall domestic urea supply and demand has reached a relatively balanced state of supply and demand.
? From 2020 to 2022, there will still be some new urea production capacity in the next three years.
Among them, about 3 million tons of urea production capacity will be released in 2020.
The future urea supply and demand will be another challenge.
The listing of urea products on futures in 2019 has increased the volatility of the urea market in the future and the possibility of investment profits.
? There is still one month left before the urea futures are listed.
Urea, as the only chemical fertilizer that is listed on the futures, is also providing a new direction and development for the development of the chemical fertilizer industry.
Some industry analysts believe that the listing of urea futures can provide forward price signals for the industry to guide spot operations, and companies can sign forward settlement purchase and sales contracts based on futures prices.
It can be said that the listing of urea futures will bring new pricing and trade models to the fertilizer industry.
However, many urea manufacturers and traders do not have relevant experience in futures operations, and are still in the learning stage.
In the early stage of futures listing, investors should study futures trading rules and combine the trend of the spot market, and do not invest blindly to avoid additional Loss.
