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According to the person in charge of these companies, as a result of consecutive Typhoon "Tailee", "Kanu", "Davi" and "Dragon King", the rainfall in Shandong Province and its neighboring areas has continued for nearly a month, farmers have delayed the autumn harvest, Even missed the sowing season, leading farmers to use less fertilizer in the fall. Shandong's fertilizer market was dripping with a "cold flu." The continuous cooling of the fertilizer market has caused most of the fertilizer manufacturers in Shandong to face the biggest dilemma of the past two years: sluggish market demand, obstructed product sales, and difficulties in capital repatriation, making the “three autumns†season of fertilizer use an off-season for fertilizer use. Shandong fertilizer companies can't help "early winter" in advance.
In late August, Typhoon "Tail", "Kanu", "Davi" and "Dragon King" successively landed in the southeast coastal areas. Affected by the continuous rainy weather in Shandong, Henan, Anhui, and northern Jiangsu. In September, the average rainfall in Shandong Province reached 180 mm, which is the highest value since the province recorded data in 1916. The infancy caused by rainfall caused crops to be reduced or even closed. The rains of the previous few days have weakened the purchasing power of farmers’ agricultural resources.
There are many small nitrogen fertilizer manufacturers in Shandong Province, and the urea production is mainly sold to Jiangsu, Anhui and other places. Because of the impact of typhoon, crops in these areas have been reduced in yield and harvest, which has reduced the income of farmers, resulting in a reduction in fertilizer use and purchases. Although after the National Day, the rainfall in these areas gradually decreased, the fields were wet and the mature crops could not be harvested mechanically, and they could only rely on human labor for harvesting. At the same time, due to missed sowing season, some crops could no longer be sown and the amount of fertilizer used was also affected.
On the one hand, the amount of fertilizer used by farmers is greatly reduced. On the other hand, the output of fertilizer manufacturers cannot be reduced. Shandong's fertilizer production companies can only fight prices in order to guarantee normal turnover of funds. The lack of confidence of sellers in the post-market has further exacerbated the recent decline in fertilizer prices in Shandong and surrounding areas.
A sales manager of a fertilizer production company in Shandong told reporters that some time ago, the sales price of urea was still around 1,700 yuan per ton, and now it has dropped to more than 1,500 yuan, which is lower than the national price limit. Companies basically sell at a cost price. The manager made a calculation. In the most recent month, the plant's urea price fell by an average of 150 yuan per ton, its annual urea production capacity was 450,000 tons, and its monthly production was 33,000 tons. As a result, the company's sales The amount has decreased by nearly 5 million yuan. The person in charge of Shandong Tailong Chemical Co., Ltd. also told reporters that the price of ammonium bicarbonate has dropped to 440 yuan per ton, a drop of 50 to 60 yuan.
It is understood that the biggest difficulty faced by fertilizer manufacturers is the shortage of funds. Raw material prices have remained high, especially for coal that requires cash purchases, while fertilizer prices have fallen. Before and after the National Day, some small-scale fertilizer companies in Shandong have been unable to maintain production due to capital turnover difficulties.
In addition, the daily rainfall also has an adverse effect on the fertilizer winter storage. Since autumn harvest has not yet started in some regions, some local guilty crops may not even be able to plant crops. Fertilizer producers and distributors feel that they have no idea about the future trend of fertilizer prices. How long can the current price be maintained? Will prices still fall? What is the purchasing power of the farmers? Everything is difficult to determine. Therefore, it is difficult for manufacturers and distributors to agree on the price of winter storage. If the issue of winter storage is not solved, the production arrangements of production companies will not be able to proceed in the next few months.
The turmoil caused by the typhoon has stopped, but the difficulties faced by Shandong fertilizer producers continue.
The rain caused by consecutive typhoons caused the fertilizer market to suffer from a “cold fluâ€: prices dropped sharply and demand fell – Shandong fertilizer companies “early winter†in advance
Just after the National Day, when the reporter learned about the current situation of chemical fertilizer production, the heads of Shandong Ruixing Chemical Group and Shandong Heze Tailong Chemical Co., Ltd. told reporters in unison that the impact of typhoon on our production was too great!