The urea market is hard to be affected by many unfavorable factors this autumn

Posted on

Since August, the domestic urea market has seen a sharp decline. Compared to the high prices in June and July, urea prices have dropped by 100 to 300 yuan per ton, with some areas experiencing a drop of up to 400 yuan—whether at the factory or wholesale level. Many analysts point to the end of the agricultural season as the main reason. Indeed, with the start of autumn, the peak period for fertilizer use has largely passed across most regions, leading to a significant drop in demand for agricultural urea. However, it's worth noting that last year, during the same period in August and September, urea prices actually rose, and even continued to climb through October, November, and December. The key difference lies in the structure of the market this year versus last. Last year, after the agricultural peak, there were still strong demands from other sectors, which supported the price. First, exports were booming. In the second half of last year, international urea prices were high, and China’s export controls were not strict, leading to a surge in urea exports. This created a situation where both the domestic and export markets were competing for the same supply. Second, compound fertilizer demand played a role. Due to strict price controls on urea during the winter storage period, dealers avoided stockpiling urea but instead focused on other fertilizers like compound fertilizers. This increased the demand for urea from compound fertilizer producers, indirectly supporting the market. Third, industrial urea demand was strong. Last year, China’s economy was growing rapidly, and industries such as man-made boards and melamine saw a surge in demand for industrial urea, further boosting the market. This year, however, the situation is different. The government imposed strict export controls, including a 30% export tax starting June 1st, which led to a sharp decline in exports. In July, China exported only 57,000 tons, down 64% from 157,000 tons in July 2004. Although the export tax was reduced to 15% in November and December, the effective cost per ton still exceeds 200 yuan unless international prices are extremely high. Additionally, the compound fertilizer market has been weak this year. With lower profits from winter storage last year, dealers are less motivated to stock up this time, reducing the demand for urea from compound fertilizer producers. On the industrial side, the government banned the issuance of value-added tax invoices for industrial urea after July, which significantly increased costs for companies using it. Combined with slower economic growth, demand from wood-based panel and melamine industries has also declined. In summary, while industrial urea demand is still present, the overall growth rate has slowed. As a result, it's unlikely that the urea market will experience the same kind of hot period as last year this fall.

Fruit Basket Specialty Injection Molding Machine

The Fruit Basket Specialty Injection Molding Machine is a precision piece of machinery specifically engineered to cater to the unique needs of fruit basket product manufacturing. With numerous customizations and optimizations tailored specifically for the fruit basket industry, this machine offers unparalleled advantages over general-purpose injection molding equipment.

Key Advantages:

  1. High Productivity: Thanks to its specialized design, the Fruit Basket Specialty Injection Molding Machine boasts significantly higher productivity rates compared to standard injection molding machines. The degree of improvement varies depending on the complexity of the product and the production environment, but generally, it allows for faster cycle times and higher output per hour.

  2. Process Stability: This machine maintains remarkable process stability throughout production runs of fruit basket products. This ensures a lower percentage of rejects and a higher level of consistency in the final products, ultimately leading to improved quality and customer satisfaction.

  3. Versatility: While primarily designed for fruit basket production, the Fruit Basket Specialty Injection Molding Machine also possesses a level of versatility, making it suitable for other similar product applications. This versatility grants manufacturers the flexibility to adapt to market changes and product updates.

  4. Specialized Screw Assembly: Equipped with a specialized screw assembly optimized for thermosetting plastics, the machine broadens its application scope to include materials that are essential for fruit basket production. This feature ensures smooth and efficient processing of the required materials.

  5. Customization Options: The Fruit Basket Specialty Injection Molding Machine offers customization options to meet the specific needs of individual manufacturers and products. This includes adjustments to machine parameters, as well as the replacement or upgradation of parts to maintain peak performance and production efficiency.

injection molding machine products,plastic injection machine,Basket Injection Molding Machine,Hydraulic Precision Injection Molding Machine

Ningbo Outai Plastic Machinery Technology Co.,Ltd , https://www.outacmachine.com