Longzhong Information: The guidance prices for urea and ammonium phosphate have been raised, laying the foundation for the increase in prices of compound fertilizers in the autumn.

Longzhong Information believes that the increase in urea and ammonium phosphate guidance prices has laid the foundation for the rise in prices of compound fertilizers in the autumn. Support from the cost side is strong, the downside space of the market is closed, but the demand side is difficult to explode rapidly. This autumn, the market will maintain a high-level volatile operation. In the long run, Huaxin Securities believes that the rise in oil prices and geopolitical conflicts will lead to an increase in grain prices, and historically, 1 to 2 years after the rise in grain prices will be a major cycle for agricultural chemicals. The widening price difference between domestic and foreign fertilizers will benefit phosphate and potassium fertilizers.