Price competition in the market of compound fertilizer

2016-05-18

 

The holiday return, the country compound fertilizer enterprises to take the goods there are different degrees of slowdown, Shandong, Shanxi, two rivers area summer fertilizer is nearing off goods to go south, rice and corn fertilizer demand also reduced shipments so we can not help but have a summer fertilizer market is just beginning. It has been over. In the face of this situation, some enterprises in Shandong, Jiangsu, two rivers, lakes and other places of the price down 20-100 yuan (ton price, the same below), individual enterprises issued a rebate, interest and other preferential policies, not a smoke of the price war is quietly started.

According to Chinese fertilizer network statistics, most areas of the country (except mountain east) 45% chlorine based compound fertilizer general factory price at 1750-1850 yuan, but the recent market feedback that individual manufacturers in Jiangsu to offer has dropped to 1700 yuan (the transaction negotiable), and even Hubei low-end quotation has reached 1630-1650 yuan, the main reason is the price of Guadan demand forced enterprises to make concessions. First of all, China's three major staple food prices fell across the board, corn is the most seriously dampened the enthusiasm of the farmers, most farmers purchase fertilizer are used with the purchase, which leads to the lag of reducing quantity of fertilizer and demand; and because of reduced funding, downstream will choose some low fat, low price goods into the market for large enterprises is also relatively large blow. Secondly, the compound fertilizer production overcapacity, oversupply, the majority of enterprises in order to occupy a larger market share, the price war, you drop me down, the contest so that most companies fall into vicious competition. Finally, the overall situation of the nitrogen, phosphorus and potassium of raw materials is not too optimistic, urea prices fell 50-60 yuan, phosphate fertilizer and potash fertilizer demand, prices are low, but also to promote a compound fertilizer price down the cause.

In the face of volatile prices, some compound fertilizer companies have said that the offer is still strong, and make appropriate adjustments to ensure price stability: first, to reduce the operating rate, reduce inventory pressure. At this stage, most of the compound fertilizer enterprises operating rate has dropped significantly, the individual enterprises to select the required production or enter short-term parking overhaul stage, and full of enterprises are in the late autumn to prepare for fertilizer. Two, product upgrading, to meet market demand. Some enterprises in the 45% general traditional chlorine based compound fertilizer with trace elements needed for different crops or land soil water retention agent, to join the new selling point of common products and improve the efficiency, thus improves the price, but farmers' acceptance can be......

Excess capacity in chemical fertilizer in China, the market price downturn, Chinese petroleum and Chemical Industry Association executive vice president Li Shousheng believes that the fertilizer industry in China must adhere to the market allocation of resources play a decisive role in the main role, strengthen technological innovation to promote innovation and enhance supply capacity to break through the difficult situation of overcapacity the ability to walk out of a new way to upgrade, so in the face of emerging price war, fertilizer companies should make production more rational and close to the market demand.