Sulfur market panic four prices down
Henan Teflon Sheet,Iso Standard Gasket,Ptfe Sheet Shengquan Industrial Corporation Limited , http://www.hn-gasket.com
Domestic manufacturers are facing the rapid decline in the sulfur market, reducing inventory is the first goal. Due to the continuous emergence of new low-priced terminals, domestic manufacturers have significantly reduced sales, the gradual decline in prices around the refinery to stimulate sales, there is no lack of refineries to make substantial deals for the transaction, high hanging low. Up to now, the mainstream price of domestic sulfur market has dropped to 1350 ~ 1500 yuan (ton price, the same below), the cumulative decline of 200 yuan, the local decline of 300 yuan.
This round of sulfur plunge prices due to the following reasons:
First, the price line reached the previous wave high, and the market has thrown goods cash. The market is approaching the high point of the previous wave, and the market has oscillated between 1600 and 1,700 yuan. The range of shocks has reached 200 to 300 yuan, and the trading environment has cooled rapidly. At the same time, there are large local businesses to suppress sulfur prices, domestic manufacturers have lowered their prices, preferential promotions; downstream fertilizer manufacturers enthusiasm enthusiasm, most manufacturers tread this round of gains, unwilling to pay for this round of gains, resulting in continuous market purchasing power Decline, throwing cash everywhere. Traders have been throwing cash out of the market, holding the currency to wait and see, and confidence has weakened. The terminal price has dropped sharply, and the sales price of sulphur in some terminals has continued to hit new lows. It is reported that part of the terminal transaction price is now less than 1300 yuan, the mainstream level in 1350 ~ 1480 yuan, the price slightly lower than domestic sulfur.
Second, the export tariffs for fertilizers have settled dust and the export gates have closed. The General Administration of Customs issued an announcement on November 29: With the approval of the State Council, from December 1, 2010 to December 31, the export tariffs will be levied on urea and ammonium phosphate at a provisional rate of 35% and 75% will be imposed. Special export tariffs. Those who declare their exports in advance before December 1 and arrive at the customs supervision area within 3 working days shall be allowed to implement the original tax rate. The export tariff of phosphate fertilizers maintains the original tax rate, and the export time of phosphate fertilizer in the off-season is adjusted to June to September. The adjustment of the export policy reduced the off-season export time by two and a half months. At the same time, the implementation of the new export policy on December 1, 2010 is equivalent to the closure of the export gate in the off-season, and the reopening of the export gate is likely to be in June 2011. This is bad news for the export of phosphate fertilizers, especially for export-oriented fertilizer companies; and for the previous domestic manufacturers as the main target market is indirect bad, part of the export resources in the early stage will be turned to the domestic market, oversupply , The lack of demand will enable the state to regulate fertilizer prices began to show results, short-term phosphate fertilizer market may fall. Phosphate fertilizer companies as the first major sulfur sulfur have to wait and see the market, sulfur procurement enthusiasm is sluggish.
Third, the European debt crisis spreads, and the US dollar is strongly bullish on the external disk of sulfur. The spread of the European debt crisis is still not over. Ireland is back on top and the dollar has risen strongly. The cumulative increase has been close to 7%. The outer disk of sulfur loosened and fell down. According to statistics, the current import price of sulfur is China's CFR from 170 to 180 US dollars, equivalent to RMB 1380 to 1450 yuan. According to the current domestic market price measurement, there is basically no profit space. At the same time, due to the recent sharp drop in the Chinese sulphur market, the international market for sulfur has deteriorated. The external disk pulled back against the domestic sulfur market, and importers’ purchasing power continued to decline.
In addition, the domestic sulfur market fell quickly, there is no lack of business speculation shadow, suppression of sulphur prices have become the will of many large businesses, the market this round of callback is a normal range, but the recent emergence of large businesses to suppress the price of sulfur, intended to hunters speculation market. To avoid this short-term risk is the key to this end, the market still has some downside, short-term risk is relatively large, the market is currently in a period of shock.