Raw material prices rise and fall

The recent domestic shipment of diammonium has basically been completed. After the northeast spring plowing and fertilizers are successively opened in May, the domestic market will shift to the export season. Recently, export companies have been collecting goods in Hong Kong. The specific export prices are still discussed in detail, and there is no final pricing. As the major exporters over the years, the export situation in China this year is still not optimistic. In the past few weeks, we have analyzed the downstream demand and prices. This week we have turned our attention to raw materials. From the perspective of **, **, etc., we can understand the impact of fluctuations in raw material prices on the market.

**Rise in the surrounding area

The recent ** market is basically a stable market, the performance of the North and South markets is different, the overall stability of the South China market in Central, South China, Southwest and other regions, the market atmosphere is relatively relaxed. This is mainly due to the large number of large-scale smelting acid and sulphonic acid companies that are concentrated in these areas. The performance of the northern market was poor. First, the smelting acid in the west of Inner Mongolia was low, followed by the steady downtrend in the Henan and Hebei markets; the Jiangsu market was slightly supported by the slight rebound in raw material prices; the Shandong market was mixed and mixed. The repair companies in the Jiaodong area have started one after another, and the market prices have gradually gone down.

The price of ** has recently risen. The price of Qingdao Port has increased from RMB 900/ton to RMB 1050-1070/ton, and the low-end price has been discussed at RMB 1030-1050/ton. Although the current price trend is rising, traders are not in a hurry to ship, and they want to wait until the price stabilizes. Downstream manufacturers are not particularly active. The reason is that prices have been very calm before. The recent uptick does not mean that the duration will last a long time. Plus, some companies are shutting down for maintenance. Therefore, the demand for inventory is not high, and the market is showing tentatively. Rising situation develops.

However, we can see a favorable situation. After the price of Qingdao Port ** rose, all traders in the port of the Yangtze River attacked the market in a centralized manner and purchased bulk cargoes from various ports. At present, the price of goods has also been fired to 1,100 yuan / ton, there is no traders reported that the price of the shipment, inventory is relatively concentrated. Li Yan, Manager of Fertilizer Marketing Department of Sinochem Shandong Fertilizer Industry Co., Ltd., said that although prices have rebounded by 50-100 yuan/ton, the price increase has not played a role in boosting the market. Many factories are still shutting down for maintenance. status. The market demand for downstream domestic ammonium phosphate has basically ended, and it is of little significance to companies doing domestic markets. For export companies, the current export prices are still negotiated, the lowest price has not yet been announced, and ** production companies need to pay attention to the development of exports in the later period. At present, there are many negative factors and ** companies are more cautious.

Beware of ** price speculation

The current situation in China cannot meet its own needs and requires a large amount of imports. The bargaining prices of importers are basically based on monthly and quarterly delivery to domestic traders. For example, Sinochem Group imports about 2 million tons each year, forming a stable cooperative relationship with foreign importers to ensure long-term and stable imports.

However, in the port areas of Qingdao, Fangchenggang, Yantai, etc., there are many trading companies. Due to the low threshold and low trade volume, these companies mainly play a role in the distribution of the market. However, as a by-product, ** is more speculative, and in the current period of market instability, some small companies will “add fuel” to products that currently have relatively large price changes, encourage growth when they rise, fall when they fall, and not To a good market guiding role. Therefore, it is still recommended that ** import companies choose large trading companies to purchase, so as not to be confused by these small companies to speculate on the current price.

** The increase in prices appears to be positive for the market for a short time, but domestic producers are a bit calm and have not purchased immediately. Before the export price has been negotiated, the export volume cannot be determined, so the purchase of raw materials is temporarily suspended. Perhaps the price increase is a phased one, and it is always good practice for the company.