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South rainy late potash demand suffered "misfiring"

Since the spring, the Northeast, the northern winter wheat areas and drought continued in parts of the South, 20% less precipitation in most parts of the South more years ago. Sichuan, Guangxi and Guangdong and other places drought. While entering the mid-south region began to increase rainfall to ease the local drought, but the wrong extension the local fertilizer demand. According to Zhuo record information learned from Guangdong and Guangxi region, after the festival, grassroots agricultural equipment fertilizer smooth start, and further waits for rice planting, fertilizing work started. However, by the impact of drought, crop progress Pianman year earlier. At the same time, the supply of potash continues to increase, so this belong to prepare fertilizer season in southern China appears fertilizer "misfiring" phenomenon. However, in the back, in addition to local weather factors, there are about quarter potash demand is an important factor.

It is understood that the rice in southern China with emphasis on Canadian red potassium fertilizer, since the sources are mainly concentrated in the hands of a large trader, the price monopoly performance significantly. However, in early 2015, Canpotex and a large trader China renewed a three-year potash supply framework contract. 2015 - During 2017, Canpotex to provide red standard grade potash exclusive marketing rights in the Chinese market, but other levels of imports of potash does not possess the exclusive rights. Since particle and red potassium restarted on stage, and together, in the southern region of the Canadian Red K diluted market share and particulate Russian red potassium. At the same time last year, carryover stocks and new sources superimposed to port potash inventories rise. Various sources compete with each other, the price decline is inevitable. Since the rebates, subsidies and other preferential policies of transparency, increase the level of disparity businesses offer period, inhibiting downstream replenishment enthusiasm. Therefore, the combination of late rainy season in some areas south of fertilizer delay, supply and demand imbalance caused prices continued low consolidation.

In addition, due to the large traders Dongchu task to complete during the first quarter of the actual discharge volume is less. Into the second quarter, the business "flood" type of delivery of goods, so that the downstream prepare a sense of panic. Coupled with enhanced risk awareness, the limited number of actual businesses prepared fertilizer, is more difficult to ease the pressure on the stock of large traders. South China cane, fruits and vegetables and other cash crops declined, reducing demand for potash potential, but also to businesses over an extended period in a clear inventory period.

Currently, the southern port of potash inventory is still high, Guangdong, Guangxi port Potash stock has reached 30 million tons, compared to last year, an increase of 43.5%. And still another late potash new contract in place, to the merchant huge selling pressure. Zhuo record information is expected in May, potash difficult trading situation signs of improvement for increasing the amount still forcing prices continue to decline in shock. But the downstream nitrogen fertilizer production enterprises to enter the high season, continued moderate growth, while the operating rate of consumption of raw materials will be accelerated. During supplementary demand for raw materials will increase, which also includes a small amount of potassium.

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