** Prices are expected to rebound

Since late October, due to the high prices in the previous period and the weakening of downstream demand, the price of ** has been declining significantly. The ex-factory price is mostly between 2,800 and 3,600 yuan (t price, the same below), and the decline rate is between 150 and 300 yuan. Prices in Heilongjiang, Jilin, and Zhejiang are relatively high, while prices in Hebei, Henan, and Anhui are relatively low.

On November 30, the National Development and Reform Commission announced that it will increase the sales price and the on-grid tariff from December 1. The sales price will increase by 3 cents per kilowatt-hour. In many provinces, the rate of increase in fertilizer prices was higher than the average level, and the rate of increase was mostly around 4 cents, and high levels in Hubei and other places exceeded 6 cents. ** is a large consumer of electricity, each producing 1 ton**, about 1,500 kwh of electricity, equivalent to an increase of ** production costs around 60 yuan, high to nearly 100 yuan. As the current price of ** has reached a low point, rising costs will push ** prices higher. In addition, prices of downstream products such as urea and ammonium bicarbonate have stabilized and rebounded, supporting prices. However, as the current market is still weak, there is little possibility that prices will rebound to the previous highs.

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