Recently, all parts of the country have entered the spring plowing season, how is the performance of the agricultural material market? Today, we start from the perspective of the supply of agricultural materials in major agricultural provinces to get a glimpse.
Shandong: Amount of agricultural materials increased in price
It is understood that in order to ensure adequate supply of chemical fertilizers for spring farming, large-scale fertilizer enterprises in Shandong are making full efforts to increase productivity. According to Xie Haisu, secretary-general of the Shandong Chemical Fertilizer and Coal Chemical Association, the current operating rate of nitrogen fertilizer companies in Shandong is 90%. The products are not only sold in the province, but also sold throughout the country, and the company has basically no inventory.
It is understood that the prices of major agricultural products have risen sharply this year due to the increasing demand for spring farming, rising international markets, and rising raw material prices. Since February, the prices of urea, 64% diammonium phosphate, and compound fertilizer products have risen to varying degrees, generally increasing by 100-350 yuan. At present, the ex-factory price of small and medium granular urea in Shandong is 2150-2200 yuan, and the mainstream transaction price refers to 2120-2150 yuan.
Henan: Reduce production but not volume
According to data from Henan Chemical Network, from August last year to March this year, the urea market continued to rise, with an increase of more than 25%. Su Dong, executive vice president of the Henan Petroleum and Chemical Industry Association, said, “The continuous rise in the fertilizer market is particularly strong in Henan. The reason for this is related to the reduction in production after the closure of the fixed bed installations of domestic nitrogen fertilizer companies. Reduced by more than 2.5 million tons, ranking in the forefront of domestic regional production reductions.. In order to stabilize the spring farming agricultural material market, we organized various forums to coordinate the advance layout of the province’s chemical fertilizer, pesticide and other agricultural material enterprises, increase the operating rate, and strive to do Until the output is reduced, the quantity will not be reduced to ensure the stability of the spring ploughing market."
Agrochemical enterprises in Henan have increased their production load and adopted a number of measures to ensure the efficient application of fertilizers and other products to help spring plowing production. Henan Jinkai Group began to formulate a spring fertilizer sales plan before the Spring Festival, and actively coordinated the full-horsepower production of production units to ensure that the average daily output of urea was 4,200 tons, and the daily delivery volume of compound fertilizer was maintained at more than 1,000 tons. The urea plant of Xinlianxin Group is working overtime and is producing at full capacity. The operating rate of the compound fertilizer plant is 90%, with a daily output of nearly 9,000 tons, which can guarantee the demand for fertilizer for spring farming by the majority of farmers.
Jiangsu: sufficient supply of agricultural materials
Jiangsu Province is a major fertilizer producer, with a perennial guarantee rate of over 120% and exports. In 2021, the total amount of fertilizer required for the production of main crops of wheat, rape, and vegetables in the whole province in 2021 will be about 450,000 tons (reduced pure, the same below). As of March 10, the province's spring ploughing had topdressed fertilizer, farmers and dealers prepared fertilizer, and the total inventory of chemical fertilizers in enterprises reached 470,000 tons, which is 104% of the fertilizer demand. The spring ploughing fertilizer is in sufficient supply.
Jiangsu Province is also a major producer of pesticides, and the supply of pesticides is abundant throughout the year. As of March 10, the province has produced 4271 tons of fungicides (discounted in percent) and 349.88 tons of pesticides (discounted in percent) for the prevention and treatment of wheat oil in spring. The supply of spring medicines is guaranteed, and the price is upfront. Slightly higher pesticide varieties are currently basically stable and have fallen slightly.
Hubei: Key enterprises started at full capacity
Hubei is a major fertilizer production province, and its reserves of phosphate mineral resources rank first in the country. The output of phosphate rock, chemical fertilizer, phosphate fertilizer, monoammonium phosphate, and diammonium phosphate ranks first in the country, nitrogen fertilizer and sulfuric acid rank second in the country, and pesticides rank fifth in the country. At present, key phosphate and compound fertilizer enterprises such as Yihua Group, Sanning Chemical Industry, Xingfa Group, Xinyangfeng, Ezhong Ecological, Xiangyun Co., Ltd. are running at full capacity and producing at full capacity to ensure that the province's agricultural production uses fertilizer for spring plowing.
According to industry analysts, the prices of major fertilizer varieties for spring farming in Hubei this year have generally risen. Up to now, the prices of major chemical fertilizers in the province have generally increased by 10%-20%. Among them, nitrogen fertilizers have increased by 18%, compound fertilizers by 16%, and phosphate fertilizers by 21%. In the later stage of anticipation, fertilizer prices will gradually return to rationality. Despite the increase in prices of agricultural materials, farmers still generally believe that this year's grain crops are "hopeful", and there is a clear upward trend in grain prices.
