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

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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 seeing a fall of up to 400 yuan, affecting both factory prices and wholesale markets. Many people believe this drop is due to the end of the agricultural fertilizer season. Indeed, as autumn began, the peak period for fertilizer use across most regions has passed, leading to a significant decrease in agricultural urea demand. However, it's worth noting that last year, urea prices actually rose during August and September, continuing to climb through October, November, and December. Why was there such a difference? The author believes the key lies in the fundamental differences between this year’s and last year’s urea markets. Last autumn, although the agricultural peak had ended, three other major factors kept the market strong. First, there was a surge in urea exports. Due to high international prices and relatively lax export controls, China’s urea exports were very active in the second half of last year, creating a situation where both the domestic and export markets competed for the same resources. Second, compound fertilizer demand played a role. During the winter stockpiling period, strict price controls on urea prevented dealers from buying large quantities, but they instead focused on storing compound fertilizers, which increased the demand for urea indirectly. Third, industrial urea demand remained strong. Last year, China’s economy was growing rapidly, and industries like man-made boards and melamine saw a surge in demand for industrial urea. This year, however, all three factors have been negatively impacted, especially exports and compound fertilizers. The government implemented strict export controls, introducing a 30% export tax starting June 1st, which caused a dramatic drop in exports. In July, China only exported 57,000 tons of urea, 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, making it unattractive unless international prices are extremely high. Additionally, the domestic compound fertilizer market has been weak this year. Dealers didn’t make much profit last year from winter stockpiling, so their enthusiasm for doing so this year is likely to be much lower. This means the demand for urea from compound fertilizer producers won’t be as strong as before. Looking at industrial urea, the government introduced a policy in July that restricted the use of value-added tax invoices for industrial urea, which significantly increased costs for industrial users. Combined with slower economic growth, this has affected industries like wood-based panels and melamine, further reducing the demand for industrial urea. In summary, while urea demand remains present, the market is no longer as robust as it was last year. It seems unlikely that the fertilizer market will experience another hot season this fall.

Parts & Auxiliary Equipment Of Injection Machine

Major Parts of Injection Machine

  1. Injection Unit (also known as the "Injection System" or "Shooting Pot")

    • Melts and injects the Plastic Material into the mold.
    • Consists of a hopper, barrel, and screw.
    • The screw rotates to move the plastic forward and inject it into the mold cavity.

  2. Clamping Unit (also known as the "Mold Clamping Unit")

    • Securely holds the mold during the injection process.
    • Consists of a clamping system that applies sufficient force to keep the mold closed.
    • Prevents mold movement or leakage of molten plastic.

  3. Hydraulic Unit

    • Provides the necessary power for the clamping unit and other moving parts.
    • Consists of pumps, motors, valves, and cylinders.
    • Converts hydraulic oil pressure into mechanical motion.

  4. Control Unit

    • Controls and monitors the entire injection molding process.
    • Ensures precise timing, temperatures, pressures, and speeds.
    • Allows for automated operation and remote monitoring.

Auxiliary Equipment

  1. Feeding System

    • Automatically delivers the plastic material to the injection unit.
    • Ensures consistent material supply and reduces downtime.

  2. Mold Temperature Controller

    • Maintains the desired mold temperature for optimal molding results.
    • Reduces cycle time and improves product quality.

  3. Material Handling Equipment

    • Facilitates the loading, unloading, and transportation of plastic materials and finished products.
    • Ensures efficient material flow and reduces labor costs.

  4. Robotics

    • Automates the removal of molded parts from the mold.
    • Reduces human error and improves productivity.

  5. Cooling System

    • Ensures rapid cooling of the molded parts to achieve the desired shape and dimensions.
    • May include water chillers, fans, and other cooling devices.

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