Last week (March 19-23), the fertilizer market weakened. As the price of raw materials continues to fall, the cost support for compound fertilizers has weakened; the demand for grassroots agriculture has started, and companies and distributors have strong willingness to ship. The current ex-factory prices of compound fertilizers have steadily declined, and the market prices in some regions have been inverted.

The survey of relevant institutions revealed that on March 22, the mainstream ex-factory price of 45% sulfur-based general-purpose compound fertilizer in the main production areas of domestic compound fertilizer was 2,250-2,400 yuan (t price, the same below), and 45% chlorine-based general-purpose compound fertilizer was 2000-2100 yuan. The weekly decline was around 50 yuan, and the transactions were concentrated at the low-end level.

The compound fertilizer raw material market went down collectively. Some high-stock areas in the northeast and southern China had heavy cargoes, and the urea price fell rapidly. The price of mono-ammonium continued to decline, and the inventory pressure of enterprises in Shandong and other places was relatively high. The price of imported potash was lowered, and domestic potash also had a price reduction risk.

Last week, part of the compound fertilizer production was resumed and some of the units were shut down for maintenance. The operating rate did not change much. The compound fertilizer market entered the late stage of spring farming. Under the influence of falling raw material prices, poor downstream demand atmosphere and increased environmental pressure, the compound fertilizer market is mainly stabilizing in the weak and moderate consolidation. Local regional inventory pressures are difficult to avoid. Some companies may introduce preferential policies and predict a price drop of around 50 yuan. With the start of spring plowing, compound fertilizer companies will switch to summer fertilizer production.