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The achievements of the top three fertilizer companies doubled in the first three quarters, and price pressure will be exerted on fertilizers in the fourth quarter as supply-guaranteeing measures are implemented.
The increase in fertilizer prices is driven by two factors. First, there has been a significant increase in the prices of raw materials. The prices of coal, natural gas, sulfur, and other fertilizer raw materials have increased significantly. As of the end of September, the year-on-year increase in the prices of these raw materials has exceeded 100%. Second, international prices have risen sharply. Affected by factors such as ample global liquidity and rising food prices stimulating fertilizer demand, international nitrogen, phosphorus, and potassium fertilizers have all seen significant price increases, exceeding those in China. This has led to a significant increase in China's fertilizer exports. According to customs statistics, 26.11 million tons of fertilizer were exported from January to September, a year-on-year increase of 31%.
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The global potash fertilizer price continues to rise, and the market capitalization of the potash fertilizer sector in the capital market has hit a new high
In recent days, two of the world's top fertilizer companies have predicted that the soaring Prices of fertilizers, including potash, will continue. On November 1, Canadian Nutrien (NTR.N), a global potash producer, raised its full-year Achievements forecast, expecting that strong crop Prices will support fertilizer Prices. Driven by record demand and strong crop profits, potash Prices in all major markets continue to rise.
Global fertilizer supply is tightening, and Russia plans to implement quota management for fertilizer exports.
Soaring natural gas prices have driven up production costs, forcing some fertilizer producers to cut production and leading to a gradual tightening of the global fertilizer supply. To ensure domestic supply, Russian Prime Minister Mikhail Mishustin said on Wednesday that Russia plans to implement a six-month export quota restriction on nitrogen and compound fertilizers.
Phosphate fertilizer authority predicts, how will the fertilizer market be this winter and next spring?
In recent days, two of the world's top fertilizer companies have predicted that the soaring Price of fertilizers, including potash, will continue. On November 1, Canadian Nutrien (NTR.N), a global potash producer, raised its full-year Achievements expectations, as it expects strong crop Prices to support fertilizer Prices. Driven by record demand and strong crop profits, potash Prices in all major markets continue to rise; Mosaic (MOS.N), another major global potash producer, also said in a statement that it expects the Price increase to continue. 90% of the company's sales in the fourth quarter of this year have been presold, and some customers have further requested advance payments for the second quarter of 2022.
How far off is a stable compound fertilizer winter storage if urea can be stabilized?
With the end of autumn fertilizer demand in various regions, the winter fertilizer storage market has once again become the focus. Compared with previous years, the difficulties faced by winter fertilizer storage this year are self-evident, especially for compound fertilizers. Up to now, only a few compound fertilizer companies have tentatively released winter storage prices, and the policies are mostly buyouts or interest-bearing prepayments, with almost no guarantees. Other companies' official prices are still under discussion. Although some companies have carried out some phased collection activities in the early stage, the main market trend has not yet been clarified, and downstream distributors are also cautious.
Urea and compound fertilizers are unstable, and diammonium phosphate can't hold up?
After the phosphorus fertilizer meeting, urea prices could not be sustained, and there were phenomena of low-priced and limited payment collection for compound fertilizers. The fertilizer market was in a state of disarray. Most industry insiders adopted a wait-and-see attitude, lacking confidence in the market. However, urea prices rebounded slightly in the past two days. Traders' dumping led to the gradual disappearance of low-priced goods in the market, and downstream companies turned to purchase goods from urea factories. The overall market sentiment improved, and confidence in urea rose, causing urea prices to gradually rebound. Compound fertilizer enterprises have sporadic quotations, mainly based on buyouts. The current mainstream Price is unclear. Industry insiders said that if urea prices stabilize, compound fertilizer enterprises may then issue winter storage Price policies.
Coal prices fall again, urea takes another hit.
After the coal price stabilized following the last round of decline, the urea market also stopped falling and stabilized, and even saw a slight rebound in some areas. However, coal prices have fallen again in recent days. According to reports, on November 7, the Shanxi Provincial Energy Supply Coordination Group issued another coal price limit order, stating that it had received a price adjustment notice from the National Development and Reform Commission, requiring all state-owned coal enterprises in the province to lower the pithead Price of 5500 kcal market coal to 900 yuan/ton from November 8, further reducing the raw material costs for various fertilizer and chemical enterprises. Urea is among them, taking another hit in addition to supply and demand, and domestic Prices are gradually falling.
Value-added fertilizers increase agricultural efficiency
Industry standards for fertilizers are once again attracting attention. Recently, a reporter learned from the Ministry of Industry and Information Technology that six fertilizer industry standards were officially implemented on April 1 this year, including six fertilizer products: humic acid urea, humic acid compound fertilizer, seaweed acid urea, seaweed fertilizer, water-soluble monoammonium phosphate, and fertilizer-grade potassium dihydrogen phosphate.