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Analysts believe that after the implementation of the peak season export tariff in the fertilizer market in December, the export of fertilizers has become difficult, resulting in an increase in the number of sulphur merchants and the rapid decline in the price of sulphur.
China Chemical Network analyst Zhang Ming disclosed that fertilizer exports from January to June continued to maintain peak season export policies. This means that the door for fertiliser exports can be reopened as early as July 2011. Prior to the export of chemical fertilizers, it will be transformed into domestic demand, which will increase the pressure on consumption in the domestic market.
Affected by this, the inventory level of Puguang Natural Gas Purification Plant, a domestic sulfur producer with a monthly output of more than 100,000 tons, has risen rapidly. Manufacturers have significantly reduced their prices, but due to limited transport capacity, inventory levels are still at a moderately high level.
According to the data from China Chemical Network, the current mainstream price in the domestic sulfur market is between 1,200 and 1,400 yuan/ton, and the local price is below 1,200 yuan/ton. The price of domestically produced sulphur was basically the same as the import price of smelter at the terminal. The mainstream transaction of the port maintained at 1300 to 1,430 yuan/ton, and the mainstream of block powder was between 1,220 and 1,280 yuan/ton.
"Because the price is low, most of the businesses have turned into losses, and the low-cost shipping will not be strong, they have turned to reluctant to sell." At present, large-scale traders do not have much inventory of goods in hand, and some businesses begin to receive goods at low prices. However, the enthusiasm of the downstream companies in picking up goods is not high, especially for chemical fertilizer companies. The negative effect of the New Deal for Chemical Fertilizer Exports on fertilizer companies has not yet been eliminated.
The domestic price of sulphur drops deeper, and the price of sulphur abroad is tending to be stable. At present, the mainstream of sulphur in foreign countries is maintained between China's CFR of 170-180 U.S. dollars per ton, which is equivalent to RMB landed costs of approximately 1,380-1,450 yuan per ton.
“According to the calculation of the current domestic terminal price of sulphur, the newly arrived imported sulphur is in a state of loss. However, domestic sulphur still has no signs of falling, resulting in a significant derailment of sulphur in foreign countries and the Chinese market.†Analysts said that China's sulphur market has once again appeared. Oversold condition.
As an important raw material for fertilizers, the price of sulphur reached an average price of 1,600-1,700 yuan/ton in November, and the average market price fell more than 300 yuan/ton within one month. The price of the Guangzhou petrochemical plant was even reduced by as much as 400 yuan/ton.