The market for potassium sulfate began to weaken in mid-August, and the price in some areas has fallen by about 100 yuan (ton price, the same below) in more than a month. The current market for potassium sulfate in Mannheim is not ideal, mainly due to poor demand in the off-season. However, under the support of low inventory, rising potassium chloride, and fluctuations in local acid prices, the price is still mainly stable for the time being; The market is fair, because production is limited and there is no pressure on sales. Mannheim began to brew up before the price drop, and the current price has risen to a level corresponding to the price of Mannheim. In general, the problem of the potassium sulfate market is mainly in Mannheim. The water and salt system wants to rise again, but the premise is that Mannheim prices can rebound.
Amidst the rising price of potassium chloride, the local low-end price of Mannheim potassium sulfate has rebounded slightly, but overall sales are not ideal, so low prices may appear from time to time to relieve sales pressure. In other words, the current rise in potassium chloride alone is not enough. At this time, the largest annual tender for potassium sulfate for tobacco in Yunnan was finally announced. Will it be the savior of the potassium sulfate market?
On September 23, China National Tobacco Corporation Yunnan Branch issued a bidding announcement for the province’s 2021 procurement of potassium sulfate for tobacco: the procurement quantity was 179,585 tons (the quantity in the previous year was 180,000 tons, which is basically the same); the bidders are required to have different annual production capacity Less than 60,000 tons (the figure was 80,000 tons in the previous year, which shows that the requirements have been reduced, that is, the scope of attracting bids has been expanded); consortium bidding is not accepted; there are a total of six bid sections, and the first five are 3 10,000 tons, the sixth is 29,585 tons (the last year’s four bidding sections were 72,000 tons, 54,000 tons, 36,000 tons and 18,000 tons, and bidders can compare the first bid to Bid registration for the fourth bidding section, but at most two bidding sections are allowed; each bidder in this bidding can also make multiple bids, and multiple bid sections can be selected, but the bidding section recommended as the first bid-winning candidate The sum of the estimated quantity cannot exceed 50% of the successful bidder’s annual production capacity. This seems to be more work for those who can, but in fact, only Luoka can do more); the bid price is 2600 yuan (the previous year’s 2950 yuan); delivery The place is the railway station trolley plate designated by the tenderer; the delivery time for raw materials shall be no later than January 31, 2021, and the delivery time for single fertilizer application shall not be later than March 20, 2021 Date; the bid opening time is 9:00, October 13, 2020 (Tuesday).
In addition, the bidding for water-soluble potassium sulfate is as follows: consortium bidding is not accepted, but whether the bidder is a production enterprise or a distributor is not limited; the purchase quantity is about 3,898.625 tons (the quantity in the previous year was 3,494.415 tons, a slight increase); the block price was 2,900 yuan (Previous year: RMB 3499); The delivery location is the tobacco leaf site designated by Fertilizer Tobacco Company.
At present, in areas where the price and shipping costs are relatively more suitable for delivery in Yunnan, the general ex-factory price of Mannheim potassium sulfate 50% powder is about 2500 yuan, and the general ex-factory price of 52% water-soluble powder is about 2600-2700 yuan; the water-salt system 52% powder is unified The station price is around RMB 2,450, and the station price for 50% fans is around RMB 2,300-2350. It is understood that the freight plus the financial cost of the goods first is at least 300-400 yuan. It can be seen that this Yunnan tobacco tender is inclined to the water-salt system potassium sulfate, which is profitable and can solve the sales pressure; the Mannheim manufacturers feel a little bit choked.
It is expected that the bidding will be successful once and will not be missed, although many manufacturers have temporarily indicated that they have no strong willingness to win the bid. There are 6 bids, and it is expected that Mannheim potassium sulfate can only be included in at most 2 of them, which will ease the off-season sales pressure of large factories; after winning the bid for the water and salt system, the supply will be more tight, which will better assist its price increase plan. Generally speaking, although Yunnan Tobacco’s bidding is not a saviour of the potassium sulfate market, it is undoubtedly an important positive event, helping it to stabilize prices in the off-season and paving the way for a possible rebound in the market outlook, at least for winning bidders. Saying that is equivalent to buying an insurance.
Source: Chemical Network
