SunSirs: Average Sales Price of Fertilizer Market in Hunan Fell by 1.8%

According to the monitoring of the Department of Commerce of Hunan Province, the average sales price of fertilizers in the province this week was 2,548.57 RMB/ton, down 1.8% week-on-week and down 7.9% year-on-year. By variety, the average sales price of nitrogen fertilizers was 2,132.48 RMB/ton, down 2.5% week-on-week and down 17% year-on-year; the average sales price of ternary compound fertilizers was 2,964.66 RMB/ton, down 1.2% week-on-week and flat year-on-year.

The main reasons for the decline in fertilizer prices are as follows: First, since August, the release of new production capacity and the recovery of maintenance in fertilizer enterprises have led to an increase in the production rate, and the supply pressure has increased during the off-season of consumption. Second, fertilizer enterprises have no spare reserve intention besides normally promoting the reserve task, the start of autumn fertilizer preparation is delayed, the downstream is cautious, and the market trade is slow. Third, the current grain price continues to be sluggish, vegetables are generally in surplus, and coupled with the high temperature and less rain, it has a negative impact on the demand for fertilizers. Fourth, the benchmark bidding price in India in September was adjusted down by 70 US dollars/ton compared to August, which is lower than the market expectation, and the market confidence was hit.

September is the peak period for fertilizer application in autumn, and the game between high supply and slow demand release is still ongoing. As the window period for autumn fertilizer preparation gradually narrows, downstream will purchase as needed. It is expected that the average selling price of fertilizers in the province will continue to show a weak trend next week.

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