What are the three hurdles for compound fertilizer during the Spring Festival?

As the Spring Festival approached, the atmosphere of the festive season was getting stronger and the compound fertilizer market was getting deserted. In the face of the low season of the Spring Festival, some companies will suspend production for the next week, and some companies will continue to maintain production. Although everyone has been mentally prepared, there are three hurdles still to be.

The first hurdle is that there are few orders and the demand is uncertain. At present, companies that can maintain production are mostly carrying out pre-orders. The situation can be maintained until the end of February. However, the continuation of new orders is unsatisfactory, causing many manufacturers to have no end of the post-holiday production and sales. Wang Boli, general manager of Zigong Yufeng Compound Fertilizer Co., Ltd., told reporters that the most difficult thing to do now is to be unable to measure the market demand after the holiday. At present, the volume of orders has fallen a lot compared with the same period of last year, and many dealers in Guangxi have to deliver goods after the holiday season. The company plans to leave on holiday next week and is expected to suspend production for about a week.

The second hurdle is that raw material prices fluctuate. This week's fluctuating price of urea, although modest, is enough to attract eyeballs in the dull fat market. "Urea today fell (up)!" A rise or fall affects the heartbeat of the downstream market, but also disrupted the dealer's judgment on the fertilizer market outlook. Potash fertilizer contracts also have an effect on price fluctuations in the domestic market. According to sources, recently merchants started selling potash stocks last year, and 60% of Russia's import of red potassium went out at a warehouse price of 3050 yuan per ton, down 150 yuan from the previous period. Shi Junsheng, deputy general manager of Shandong Lvyuan Sales Co., stated frankly: “It is difficult to say that the trend of compound fertilizer will be in spring this year. There are still variations in raw material prices.”

The third hurdle is the lack of transportation and labor resources. With the start of Spring Festival, steam, iron, and transport resources will all be occupied in large quantities. A large number of migrant workers returning home will also affect the handling of chemical fertilizers. Jiangsu Ruihe Marketing Minister Zhang Ruihe told reporters that at present, the main market for Jiangsu manufacturers is the northeast, pre-holiday shipments can be up to February 6, some companies do not stop during the Spring Festival, but will properly control the operating rate, to avoid pressure on the inventory . Jiangxi's six countries encountered migrant workers returning to their hometowns. The company temporarily transferred employees from other positions to first-line shipments of fertilizer to ensure normal delivery. Sichuan Yufeng Compound Fertilizer Co., Ltd. intends to send a batch of chemical fertilizer to Guangxi within a few days of the spring transportation gap. General manager Wang Boli said that no one received the goods early in the morning and they were late and worried about losing the market. “This time was sent, and when Guangxi arrived, the holiday was over. The stevedores were on duty and the market started.”

However, even with difficulties, rigid market demand is the most powerful support for the compound fertilizer market. I believe that spring will return to the earth, the market will accelerate the pace of recovery.