After the Spring festival, fertilizer enterprises have taken on the resumption of work. According to data of China's Fertilizer Network, the production of urea enterprises has risen to 140000 tons, and the production of compound fertilizers also has been gradually back on track. For diammonium, production plants in Hubei area are expected to resume production in early-mid March, and enterprises in the Southwest started production with a relatively high operating rate to ensure the smooth operation in the Spring ploughing season. At present, the price of 64% diammonium purchased from Heilongjiang region is 2400-2450 yuan (ton price, the same below), 64% diammonium from Northwest region is 2400 yuan, and 64% from Xinjiang region is 2650 yuan. For the moment, the price of diammonium is slightly higher than that of the year before, but some factories are temporarily closed so far. Will the follow-up quotation explode?

First of all, the inventory in the downstream market is low, and there is a certain sense of fears among grassroots farmers and dealers. In recent years, the profits of dealers in the winter storage market are less and less. In addition, the operation time after the Spring Festival is abundant due to the earlier Spring Festival this year, and compared with previous years, the overall amount of reserves is significantly reduced. However, noboy has ever expected that after the year we were all stuck at home, and the whole fertilizer market is basically in a state of stagnation in the early stage, and the production and transportation of diammonium plants in Hubei region was seriously affected. As a result, there are relatively few available goods in the market, grassroots farmers and dealers started to worry about the shortage of goods in their hands, and the downstream demand became comparatively pressing, resulting in a partial rise in diammonium.

Second, the upstream is about to return to work. The price of diammonium has been risen again and again. One of the main reasons is that the production of factories in Hubei area has been reduced significantly due to the outbreak of the disease, and the transportation is relatively limited, which further exacerbated the panic in the downstream market, thus the price of diammonium further rises. But now, as time goes by, in ordr not to miss the farming season, phosphate fertilizer enterprises in Hubei Province have been listed in the list of key enterprises to resume production and work to provide fertilizers in time to guarantee horticultural production. Factories in the Southwest is also in full operating state, making every effort to win this spring-ploughing war. Thus it can be seen that the short supply of the downstream market will be alleviated after enterprises in Hubei are back to work normally.

Finally, prices of raw materials cannot support sufficiently. The spring market has started, but the overall start of ammonium phosphate enterprises is much lower than that in previous years due to the impact of this outbreak. Coupled with the excessive storage, the driving force of sulfur price is insufficient. The price of sulfur particles in Yangtze river port is temporarily stable at 610 yuan. Liquid ammonia, also influenced by the strength of the urea market, the overall price has driven up, but in Hubei area, the mainstream acceptance transaction ex-factory reference price of liquid ammonia is 2150-2250 yuan, which is much lower than the price of about 2450 yuan before. Benefited from the full support of the Spring-ploughing policy, the overall price of phosphate ore is basically stable. Therefore, in a short time the price of raw materials shows less support to diammonium market.

To sum up, the Spring market started in succession, and the quotation of diammonium rose by about 50-100 yuan, compared with that of the previous year. However, with the continuous resumption of factories in Hubei, the quotation is unlikely to rise significantly.