Summary of urea market conditions and prices in January 2017

Domestic urea price trends author/source: China Fertilizer Network Date: 2017-01-03 Click rate: 11 The operating rate of urea continues to be low this month, and the shipping situation in some areas has not improved significantly. At the beginning of the month, most manufacturers' pending orders dropped slightly, and high-priced new orders were average. Therefore, urea quotations in most areas fell slightly. Starting from the second week of this month, the number of inquiries for urea from industrial compound fertilizer companies in Shandong and other places has increased slightly, and the delivery price has also increased. In some areas, urea quotations have begun to increase slightly. However, the willingness of grassroots dealers to prepare fertilizer is still low. After the overall urea price increased slightly, * * . By the middle and late of this month, severely affected by the fog, and under the pressure of environmental inspections, the operating rate of the urea industry once dropped to... (see the member area for omitted parts, the same below), and the volume of orders received by compound fertilizer companies increased steadily and slightly. The urea market was in short supply, and a few urea companies began to suspend collections. At the same time, the Ministry of Finance of China issued a tariff notice on the afternoon of the 23rd of this month. In 2017, The complete elimination of the original export tariff of 80 yuan/ton on urea has further contributed to the continued sharp increase in urea quotations. The increase in quotations has also slightly led to an increase in outbound shipments to the surrounding provinces in these areas. Therefore, urea quotations have risen sharply in the second half of the month. By the end of this month, environmental protection pressure has slightly reduced, local operating rates have increased slightly, and the rise of urea has slowed down. So far, quotations in many places have stopped rising and are mainly maintained at high levels. Compared with the end of last month, the operating rate of urea companies in Shandong continues to be low due to the pressure of environmental inspections. The receipts of industrial compound fertilizer companies have increased steadily. The supply of urea market is tight. Therefore, the mainstream ex-factory quotation has increased by 180-190 yuan (ton price, the same below) to 1660-1670 yuan. The receiving price in Linyi has increased by 250 yuan from the end of last month.…… ； A large enterprise in Hebei region stopped production for maintenance due to environmental inspection, and the urea operating rate..., so the mainstream factory quotation increased by 140-170 yuan to 1620-1660 yuan. ； The situation of local sales of urea enterprises in Henan and outbound shipments to Jiangsu, Anhui and Southeast China is good. The mainstream ex-factory quotation has increased by 150-160 yuan to 1650-1660 yuan, and the transaction price is mostly 1630-1640 yuan. At present, manufacturers still have a small number of orders to be shipped. ； The situation of urea shipped by train in Shanxi has not improved yet. Due to the high inventory pressure, manufacturers mostly ship to other provinces by truck. The current inventory pressure has slightly reduced, and the number of orders to be shipped is large. Therefore, Shanxi urea manufacturers have once again controlled orders at high prices. The mainstream ex-factory quotation has increased by 40-100 yuan to 1500-1600 yuan. ； The operating rates in Jiangsu and Anhui are both at a low level, and the volume of urea shipped to other provinces such as Lianghe and other provinces has decreased. Therefore, the mainstream ex-factory quotation in Anhui has increased by 150 yuan to about 1,700 yuan, and the mainstream ex-factory quotation in Jiangsu has increased by 170-210 yuan to about 1,760 yuan. New orders are still acceptable. ； The arrival volume of urea from other provinces in Hubei is not large, and the mainstream ex-factory quotation has increased by 80-110 yuan to 1650-1680 yuan. It is reported that urea companies in Hunan that have been suspended for a long time may resume production after the Spring Festival. The Shaanxi-Gansu-Ningxia region is also slightly affected by environmental inspections, and the operating rate is low. Among them, the mainstream factory price in Shaanxi has increased by 150-170 yuan to 1700-1720 yuan, and the outbound factory price has increased to 1650 yuan. Some manufacturers close to Inner Mongolia have factory prices. The quotation also rose to around 1,460 yuan. The only urea manufacturer in Gansu finally resumed production in the second half of the year, and its ex-factory quotation rose by 30 yuan to 1,480 yuan. Some discontinued manufacturers in Ningxia also resumed production in the latter half of the year, and the mainstream ex-factory quotation rose to 1,350 yuan, with favorable transaction prices. The southwestern region is less affected by Xinjiang's low-price supply, and sales in Sichuan and Chongqing and exports to Guangdong and Guangxi are in good condition. The mainstream ex-factory quotation in Sichuan has increased by 110-160 yuan to about 1,710 yuan, and the mainstream ex-factory quotation in Chongqing has increased by 130 yuan to about 1,710 yuan. The operating rate of urea in Yunnan is low, and the mainstream ex-factory quotation has increased by 250 yuan to 1,700-1,800 yuan. Only a few suspended small factories have resumed production. Zhejiang urea manufacturers still have no plans to resume production ； The operating rate in Fujian..., and the factories that have suspended production in surrounding areas have not resumed production, so the mainstream ex-factory quotation has increased by 80 yuan to about 1,750 yuan. ； Urea manufacturers in Guizhou have not resumed production due to raw coal problems. The two urea bidding prices in Xinjiang this month were both relatively high. In addition, urea prices in other regions have increased significantly, so the mainstream ex-factory quotation has increased by 170-200 yuan to 1150-1220 yuan. However, after the quotation increase, local sales are currently light, and shipments by fire are still not smooth. Some manufacturers in Inner Mongolia also have a large number of orders to be shipped. In addition, the price of urea has increased in most areas across the country. The mainstream ex-factory quotation in Inner Mongolia has also increased by 50-150 yuan to about 1,350 yuan. The quotation from individual manufacturers to the Northeast has risen to 1,700 yuan. Demand in the Northeast is still poor. A large factory in Heilongjiang resumed production in the middle of this month and stopped production again for maintenance about a week later. The mainstream ex-factory quotation is 1,490-1,520 yuan. Two manufacturers in Jilin are still shutting down production and suspending quotations. A large factory in Liaoning continues to operate at low load. The mainstream ex-factory quotation rose by 120 yuan to 1,610-1,640 yuan. International urea prices lagged behind and rebounded. ……. Taken together, the elimination of export tariffs has slightly enhanced the competitiveness of my country's urea exports. Under the pressure of domestic environmental inspections, the operating rate of the urea industry has continued to be low this month. The urea market is in tight supply, and the downstream compound fertilizer receiving situation is better (the operating rate of the compound fertilizer industry has increased compared with the end of last month. 15 percentage points to about 65%), and the delivery price has continued to rise, so the urea quotation has risen sharply since the middle of the month, but followed by a slight rebound in the urea operating rate (urea operating rate...), the company's high-priced new orders are generally, and the urea quotation has temporarily increased towards the end of the month. * * , it is reported that at the end of the month, the fog in Shandong, Hebei and other places will become slightly serious again after it eases. Relevant departments may continue to strictly implement environmental protection inspections. The urea operating rate may decrease again, and local transportation may be restricted. It is expected that urea prices will continue to consolidate at a high level or rise slightly in the future. It is mainly necessary to pay attention to changes in the urea operating rate.

Domestic urea price trends author/source: China Fertilizer Network Date: 2017-01-04 Click rate: 25 Urea quotations are temporarily stable, with some individual prices consolidating slightly. Since the New Year's Day holiday, the fog has become severe again in the Lianghe area of ​​Shandong. Under the pressure of environmental protection inspections, the operating rate has recovered slightly and then dropped again (currently Shandong is only about..., see the member area for omitted parts, the same below). However, agricultural demand is light, so the mainstream ex-factory quotation in Shandong is temporarily stable at 1660-1670 yuan (ton price, the same below). The quotations of individual urea companies with reduced loads have been slightly increased. Compound fertilizer manufacturers have received goods steadily, and the price of goods received in Linyi has been stable for the time being.…… ； Mainstream ex-factory quotations in Hebei are temporarily stable at 1,620-1,660 yuan, and most of the ex-factory transactions are in... Some large factories plan to resume production on the 6th. ； The mainstream ex-factory price in Henan is temporarily stable at 1,650-1,660 yuan. Mainstream ex-factory quotations in Jiangsu and Anhui are temporarily stable. However, some urea manufacturers in Anhui said that the delivery situation is average. A large factory in Jiangsu has finally resumed production. The current ex-factory quotation is 1,740 yuan, and the transaction volume is slightly lower. ； The supply of urea in Hubei is still relatively tight, so the mainstream ex-factory quotation has increased by 20-50 yuan to about 1,700 yuan. ； The mainstream ex-factory quotation in Gansu is 1,450-1,480 yuan. A small amount of Xinjiang low-price urea has arrived locally, and the wholesale price of Xinjiang urea in some markets has reached 1,450 yuan. ； Urea sales in Sichuan have slowed down slightly, and the low-end mainstream ex-factory quotations have dropped by 10 yuan to 1,700-1,710 yuan, with large orders slightly lower. ； Urea companies in Guizhou are still shutting down for maintenance due to insufficient supply of raw coal, and some manufacturers plan to resume production after the Spring Festival. On the whole, due to the severe fog, urea shipments are not smooth, downstream dealers are in a wait-and-see mood, and new orders in agriculture are not good. However, compound fertilizer manufacturers are stable in purchasing urea, and there is a large gap at the grassroots level in agriculture. The industry's operating rate has dropped again due to environmental inspections, which still provides strong support for the current urea price. Therefore, urea prices are mostly maintained at a high level. It is expected that prices will continue to be stable, and changes in the operating rate still need to be paid attention to. If there is any part of the analysis and market data on this website that you want to know more about, you can call the consultation hotline 0451-88001128 Regional Market: unit: Yuan/ton (bold in the table indicates large particle urea)

China's Fertilizer Wholesale Price Comprehensive Index Continues to Rise Author/Source: China Agricultural Materials Herald Network Date: 2017-01-05 Click rate: 28 Last week (December 26-30), China’s comprehensive fertilizer wholesale price index continued to rise. On January 3, the China Chemical Fertilizer Wholesale Price Comprehensive Index (CFCI) was 1902.57 points, an increase of 20.87 points or 1.11% month-on-month. ； A year-on-year decrease of 26.02 points, a decrease of 1.35% ； It fell 476.30 points or 20.02% from the base period. On January 3, the China Compound Fertilizer Retail Price Index (CCRI) was 2273.37 points, an increase of 5.37 points or 0.24% from the previous month. ； A year-on-year decrease of 201.33 points, a decrease of 8.14% ； It dropped 173.34 points from the base period, or 7.08%. 　　Availability: In the urea market, the price of raw material coal is consolidating at a high level, the overall operating rate of enterprises is still low, and the price of urea continues to rise. The supply in the diammonium market continues to be tight. Business owners have placed early low-price orders, and new order transactions have basically stagnated. The overall price * * . In the potassium chloride market, domestic potash fertilizer shipments have improved, but port potash fertilizer has not been fully released, and the market supply is relatively tight. Affected by factors such as higher raw material and freight costs, environmental protection and production restrictions, the compound fertilizer market continues its upward trend. 　　demand situation: In terms of the urea market, agricultural fertilizer preparation has been slow to start, industrial purchases are limited, and demand support for urea is slightly weak. Diammonium phosphate downstream dealers mainly receive goods, and there is a strong wait-and-see atmosphere. Domestic winter storage of potash fertilizers is not progressing smoothly, and supply is mainly concentrated at second- and third-tier wholesalers. ； The purchasing demand for industrial compound fertilizers is average. The downstream agricultural demand for compound fertilizers is light, dealers' enthusiasm for purchasing goods has not improved significantly, and the wait-and-see sentiment remains strong. 　　international market: The international urea market was affected by the Christmas and New Year holidays, and the market trading conditions were average. The international urea, diammonium phosphate, and potash fertilizer markets had average trading conditions, and prices generally remained stable. 　　In terms of urea, the market supply is tight, raw material prices are high, and tariffs have been removed, all of which have provided positive support to the market. Prices are expected to remain strong in the future, and there is still room for upward growth in some areas. Supported by favorable factors such as high raw material prices, tight supply, and removal of tariffs, diammonium phosphate's tight supply and rising prices may continue. The market demand for potash fertilizer is average, and the situation of poor shipments has improved compared with the previous period. It is expected that the price will be stable in the later period. Compound fertilizer cost support is strong, but downstream demand is not good. It is expected that new orders will continue to be light in the later period, and the price center of gravity will slowly shift upward. (Qiao Liying)

Price rise is a foregone conclusion. There are hidden worries behind the hot market. Author/Source: China Agricultural Materials Media Date: 2017-01-06 Click rate: 12 Guests in this issue: 　　Xu Jimeng, President of Shi Kefeng Chemical Co., Ltd. The current sales situation in the fertilizer market is mixed. The reason why agricultural supplies sales companies feel happy is that the recent sales situation is favorable and the market sales prices of various products are relatively high. However, it must be noted that the prices of agricultural input products have been rising, but farmers' income has not increased as expected. The price of agricultural products has not improved, and farmers' income has dropped, which will inevitably affect farmers' purchasing power of agricultural products. 　　The market situation is mixed. When talking about the current sales situation of the fertilizer market, Xu Jimeng, president of Shi Kefeng Chemical Co., Ltd., told reporters intuitively that the current sales situation of the fertilizer market is mixed. The reason why agricultural supplies sales companies feel happy is that the recent sales situation is favorable and the market sales prices of various products are relatively high. “In the past two years, various products in the agricultural input market have been operating at low prices. The low prices all year round are like a huge stone slab that makes agricultural input people breathless. Especially in 2016, the entire fertilizer sales market experienced extreme price torture in the first half of the year. This extreme price was obviously not an extreme high price, but an extreme low price. In the first half of 2016, urea, as a price guide for the agricultural input market, once fell to about 1,200 yuan/ton. Especially in June, the price of urea dropped to about 1,100 yuan/ton unprecedentedly, completely becoming the bottom price. Not only the sales price of urea, but also monoammonium phosphate has reached historical extreme levels. When the price of monoammonium phosphate bottomed out in 2016, it was only about 1,400 yuan/ton. "Bloody" prices similar to the above have caused hard-to-remove scars on agricultural product manufacturing companies. ” 　　However, it is gratifying that at the end of 2016, the entire fertilizer market was controlled by a common saying, which is "After the coal price rises, the gas price will rise, and after the gas price rises, the freight price will rise." The prices of coal, natural gas, road transportation, and railway transportation have all risen, which directly drives up the prices of agricultural products. It is indeed gratifying that various types of agricultural products have rebounded strongly after experiencing a sharp decline. 　　Xu Jimeng also said that to look at the prosperity and prosperity of the current agricultural supplies market objectively, we must not only see the joyful side, but also see the hidden worries behind the hot market. He told reporters objectively: “As the prices of upstream raw materials for agricultural products rise, the prices of various products are still rising. However, it must be noted that the prices of agricultural input products have been rising, but farmers' income has not increased as expected. With the current transformation and upgrading of the planting structure in full swing, some cash crop growers still have a certain profit margin, while many field grain crop growers not only do not make money, but are in danger of losing money. The price of agricultural products has not improved and farmers' income has dropped, which will inevitably affect farmers' purchasing power of agricultural products. After farmers' purchasing power drops significantly, it will have a direct negative impact on the market sales prices of agricultural products. ” 　　Price rise is a foregone conclusion. We will study and judge the later market based on the existing market sales situation and sales prices, Xu Jimeng told reporters: “According to the current market sales prices of various agricultural products, the upward trend in prices is a foregone conclusion. It is expected that the sales prices of market products are unlikely to fall back this spring, but are likely to rise further. Even before the intensive sales period in spring, when various companies expand production capacity and the market products are sufficient and saturated, product prices may fluctuate. However, such fluctuations will be small or even minimal. In the coming period, the overall market sales situation has been established, and the price trend of various agricultural products is bottoming out and rising steadily. ” 　　Xu Jimeng predicts that after the concentrated sales period this spring, farmers' direct purchasing behavior will be concentrated at the sales terminal. It cannot be ignored that farmers' purchasing power is directly proportional to the price of agricultural products. The stronger the farmers' purchasing power, the better the market sales price will be. However, there is concern that farmers' limited purchasing power will have an impact on the fertilizer market. 　　In the later sales market, product price wars may have started before the concentrated sales period. The price wars carried out by various circulation companies to seize the market will have certain adverse effects on the later market. In the later market sales, if each circulation company wants to take the lead in the market, it must strengthen the construction of sales networks and sales terminals at this stage. The sales price of products in February may drop slightly. Circulation companies can take this opportunity to hunt for bargains. After the sales terminals are established and improved, the concentrated sales period will still be profitable. (Song Anyong)

Ministry of Commerce: Fertilizer prices rose last week1 Author/Source: date: 2017-01-06 Click rate: 11 According to monitoring by the Ministry of Commerce, last week (December 26, 2016 to January 1, 2017), the national market price index for edible agricultural products increased by 0.6% from the previous week, and the market price index for production materials decreased by 0.2% from the previous week. 　　Edible agricultural products market: The average price of 30 kinds of vegetables increased by 1.3% compared with the previous week, of which the prices of tomatoes, cucumbers, and bitter melons increased by 9.2%, 7.7%, and 7.3% respectively. The average price of aquatic products increased by 0.6%, among which the prices of grass carp, crucian carp and small yellow croaker increased by 1.7%, 0.7% and 0.7% respectively. Meat prices rose slightly, with pork and mutton prices rising by 0.5% and 0.6% respectively, while beef prices remained stable. Grain prices increased slightly, with rice and flour prices rising by 0.2% and 0.3% respectively compared with the previous week. Edible oil prices increased, with soybean oil and peanut oil prices both rising by 0.4%, and rapeseed oil prices remaining the same as the previous week. The price of poultry and eggs fluctuated slightly, with the price of white-striped chickens rising by 0.1%, the price of eggs falling by 0.4%, and the price of white-striped ducks remaining the same as the previous week. 　　market for means of production: Steel prices fell by 1.3% compared with the previous week, with prices of rebar, high-speed wire rods, and channel steel falling by 1.8%, 1.7%, and 1.3% respectively. Rubber prices fell by 1.2%, of which natural rubber prices fell by 2.2% and synthetic rubber prices increased by 0.2%. The price of nonferrous metals decreased by 0.6%, of which the prices of nickel, lead, and aluminum decreased by 5.4%, 3.4%, and 1.6% respectively, while the prices of zinc, copper, and tin increased by 0.7%, 0.6%, and 0.6% respectively. Coal prices rose by 0.1%, with anthracite and thermal coal prices rising by 0.4% and 0.2% respectively, while coking coal prices fell by 0.3%. The price of basic chemical raw materials increased by 0.8%, of which methanol, soda ash, and caustic soda increased by 1.7%, 1.3%, and 1.1% respectively. The price of sulfuric acid remained unchanged from the previous week, and the price of pure benzene decreased by 0.1%. The price of chemical fertilizers increased by 1%, of which the prices of urea, diammonium phosphate, potassium chloride, and ternary compound fertilizer increased by 1.6%, 0.6%, 0.4%, and 0.4% respectively. (Ministry of Commerce website)

These five reasons are causing the price of ammonium chloride to rise! Author/Source: Agricultural Materials Herald Date: 2017-01-06 Click rate: 8 The price of ammonium chloride has been rising steadily recently. Some companies have raised prices by 10 to 50 yuan (ton price, the same below). The national ex-factory quotations for wet ammonium are mostly 450 to 500 yuan, and dry ammonium is 520 to 600 yuan. High-end quotations have increased. 　　The price trend of ammonium chloride is rising mainly due to five reasons: 　　The operating rate is limited. Due to factors such as environmental protection inspections, the current operating rate of soda ash manufacturers is not high. The overall operating rate has dropped to about 70%, and the supply of ammonium chloride has decreased. 　　Cost increase Most ammonium chloride companies use coal as raw material. The thermal coal price index in the Bohai Rim region has risen from less than 400 yuan at the beginning of 2016 to the current level of about 600 yuan, an increase of more than 50%, causing the production cost of ammonium chloride to rise. 　　The demand for compound fertilizers has started. As the reserve fertilizer season approaches, the operating rate of compound fertilizer manufacturers slowly rebounds, and the demand for ammonium chloride increases. The sales pressure of ammonium chloride manufacturers is not great, and some manufacturers even express that they are tight on spot. 　　The price of urea rose sharply. From late November to early December 2016, the price of urea fell back. Now it has resumed its upward trend. In many regions, the price has exceeded the previous high point. The ex-factory price of urea in Shandong, Henan and Hebei has comprehensively exceeded the 1,600 yuan mark, setting a new high for the same period in the past three years, which has enhanced the confidence of ammonium chloride companies in supporting prices. 　　Export is better 　　 * * Customs statistics show that in the first 11 months of 2016, China exported a total of 918,000 tons of ammonium chloride for fertilizers and 113,000 tons of ammonium chloride for non-fertilizers. The sum of the two has exceeded 1 million tons, a year-on-year increase of 2.2%. A large amount of ammonium chloride goes to foreign markets, reducing the supply in the domestic market and supporting prices. (Zhou Heping)

Domestic urea price trends author/source: China Fertilizer Network Date: 2017-01-06 Click rate: 12 Urea quotation continues * * , slightly upward in some cases. Rain and snow weather in some areas of Shandong, Lianghe and Shanxi have slightly alleviated the fog, and the urea operating rate continues to be low. However, due to the rain, snow and fog, urea shipments are still not smooth, and agricultural purchasing willingness is low. Therefore, the mainstream ex-factory quotation of Shandong urea is temporarily stable at 1660-1670 yuan (ton price, the same below). The transaction price of individual manufacturers dropped slightly by 20 yuan, and the Linyi delivery price... (See the member area for omitted parts, the same below) ； Mainstream factory quotations in Hebei are temporarily stable at 1,620-1,660 yuan ； The mainstream ex-factory quotations in Henan are temporarily stable at 1,650-1,660 yuan, and some manufacturers have slightly larger discounts. ； Shanxi's mainstream ex-factory quotation lags behind and is temporarily stable at 1,580-1,600 yuan, and truck transportation is not smooth. However, the outbound shipment by fire has eased slightly. Some major manufacturers said that the outsourced outbound shipment by fire was about 3,000 tons in the past week. Jiangsu's mainstream factory quotations at the low end increased by 10 yuan to 1,750-1,760 yuan, and the transaction volume was slightly lower. ； The industrial and agricultural sales situation in Shaanxi is good. The low-end mainstream ex-factory quotation has increased by 20 yuan to about 1,720 yuan. The outbound factory quotation is 1,650 yuan. Some urea manufacturers have ex-factory quotations close to Inner Mongolia.…… ； The load of Chongqing urea manufacturers is less than half, and the market gap in the southeast region is large and the outsourcing situation is good. Therefore, the mainstream ex-factory price in Chongqing has increased by 30 yuan to about 1,740 yuan, and orders are limited. ； The urea market in Fujian is in tight supply, so the mainstream ex-factory price has increased by 20 yuan to about 1,800 yuan. In terms of large particles, a large factory in Inner Mongolia has a large number of pending orders, and the mainstream ex-factory quotation has increased by another 20-50 yuan to 1,420-1,550 yuan. In terms of ports,…. On the whole, the international favorable conditions have slightly expanded, but they have not yet been in line with domestic prices. Domestic fog and local rain and snow have hindered the shipment of urea, and have also begun to slightly restrict the operating rate of industrial compound fertilizer companies. However, the operating rate of urea is low and the agricultural gap is large. It is expected that urea prices will continue to rise in the future. * * , still need to pay close attention to the operating rate and transportation situation. If there is any part of the analysis and market data on this website that you want to know more about, you can call the consultation hotline 0451-88001128 Regional Market: unit: Yuan/ton (bold in the table indicates large particle urea)

The price of urea has increased by 30% in 5 months. The performance of listed urea companies is still not optimistic. Author/Source: Interface date: 2017-01-04 Click rate: 40 It is no exaggeration to describe the recent rise in urea prices as “jumping”. 　　 　　On December 28, urea prices remained strong. Jiemian News statistics found that based on the day's ex-factory price of urea disclosed by 22 chemical companies, the average ex-factory price was 1,665.68 yuan/ton, an increase of 16.82 yuan/ton from the previous day. Among them, 7 companies raised the ex-factory price of urea on the same day, and 15 companies kept the price unchanged. Hualu Hengsheng (13.350,0.10,0.75%) ( 600426.SH ) and Luxi Chemical (5.660,0.07,1.25%) (000830.SZ) were all included in the increase. The ex-factory price of urea on that day increased by 10 yuan/ton and 20 yuan/ton respectively. 　　 　　Since urea prices bottomed out and rebounded on August 20 this year, the national urea market price has increased by more than 30%. * * Data from the Bureau of Statistics show that as of December 20, the nationwide market price of urea was 1,599.50 yuan/ton. The regional average market prices in the five major regions on the 28th further showed that the upward momentum of urea prices has not stopped. On that day, the average market price in the five major regions was 1,657.75 yuan/ton, an increase of 12.42 yuan/ton from the previous day. Except for South China, which tied the previous day's price of 1,765 yuan/ton, the market prices in the other four major regions all increased. 　　 　　Affected by the upstream and downstream, urea has bottomed out and rebounded in a "V-shaped" market this year. On the upstream side, the continued rise in coal prices this year has pushed up the cost of urea, thereby driving the price of urea back up. Anthracite is an important raw material for making urea. In April this year, anthracite coal started to rise. Data from the three major regions of Northwest, Central and North China show that as of December 28, the average market price of anthracite in the three regions was 920 yuan/ton, an increase of 40% from the beginning of April. At the downstream end, the stabilization of major crop prices has stimulated production, resulting in increased demand for urea. In addition, two factors are also supporting urea prices: First, the electricity discount for small and medium-sized fertilizer companies will be canceled this year, which will put pressure on the production costs of some companies. ； Second, the recently announced "2017 Tariff Adjustment Plan" decided to cancel urea export tariffs, which may boost domestic export demand. Both supply and demand sides improved at the same time, allowing urea prices to rise. 　　 　　The improving market conditions are good for urea listed companies. Taking the three representative companies in the urea industry as examples, Hualu Hengsheng and Yangmei Chemical ( 600691.SH ), Luxi Chemical Industry will directly benefit. Hualu Hengsheng's fertilizer business accounts for half of the company's main business, and its "Youyi Brand" series of urea products have become one of the company's leading products. Yangmei Chemical's main products include dozens of chemical and fertilizer products such as urea, methanol, and liquid ammonia, but urea has become the company's largest revenue product, accounting for more than 35% of its revenue. Luxi Chemical, which integrates chemicals, fertilizers, and equipment manufacturing, accounts for nearly 20% of its urea revenue. 　　 　　Despite this, the performance of urea listed companies is still not optimistic. Since the market price of urea peaked at 1,837.60 yuan/ton in June last year, as the market has weakened, the performance of urea companies has continued to be under pressure. According to the performance reports of the above three companies, in the first three quarters of this year, Hualu Hengsheng, Yangmei Chemical, and Luxi Chemical all suffered a double decline in revenue and attributable net profit. Among them, the performance of Yiyang Coal Chemical Industry has declined the most. The company's third quarter report shows that in the first nine months of this year, Yangmei Chemical achieved operating income and attributable net profit of 13.475 billion yuan and -753 million yuan respectively, down 11.80% and 1569.99% year-on-year respectively. Although Hualu Hengsheng and Luxi Chemical remained profitable, their attributable net profits in the first three quarters also fell by 16.12% and 48.76% respectively. 　　 　　Data show that compared with the other two listed companies, fluctuations in urea prices have a greater impact on the performance of Yangmei Chemical Industry. Yangmei Chemical is one of the leading urea companies in Meantou and was successfully listed on the backdoor in 2012. Since its launch, urea products have always occupied the first place in the company's revenue structure, and its revenue share is far ahead. From 2012 to 2015, the company's urea products accounted for an average of 28.29% of annual revenue, and it was as high as 35% at the end of last year. In the first half of this year, the revenue share of this product remained at 28.56%. 　　 　　In 2015, Yangmei Chemical's urea production and sales hit a new high since its listing. The company disclosed that in 2015, its urea production and sales were 4.2562 million tons and 4.0831 million tons respectively, a year-on-year increase of 13% and 6%. That year, the company's urea revenue share also hit the highest level since its listing, reaching 35.09%. Therefore, although the urea market surged and then fell back in 2015, Yangmei Chemical still took advantage of the rising urea market in the first half of last year, helping the company's net profit to double year-on-year in the first and second quarters of that year. Affected by this, Yangmei Chemical's urea revenue maintained positive growth throughout the year. The annual report shows that Yangmei Chemical's urea revenue in 2015 increased by 19.37% year-on-year, and its gross profit increased by 179.07% year-on-year. In 2015, Yangmei Chemical finally achieved profitability, thereby reversing two consecutive years of net profit losses and "preserving its shell." 　　 　　However, the good times did not last long. The price of urea, which began to decline in the second half of last year, has hit a bottom this year. As a result, the operating pressure on Yangmei Chemical Industry after increasing the mass production of urea has become highlighted. According to the ex-factory price of urea announced by Yangmei Pingyuan, a subsidiary of the company, in the first four months of this year, the company's ex-factory price of urea barely maintained an increase. But in May, the price continued to fall, and once bottomed out at a record low of 1,130 yuan/ton. By the end of the third quarter, the company's urea ex-factory price was 1,180 yuan/ton, down 11% from the beginning of the year. Correspondingly, the company's performance is also not optimistic. After making a small profit in the first quarter, Yangmei Chemical lost money rapidly in the second quarter, with its net profit loss for the quarter exceeding 350 million yuan. In the third quarter, the company's losses continued to expand, with losses exceeding 400 million yuan. 　　 　　In October, the urea industry ushered in an explosive market, and the ex-factory price of urea of ​​Yangmei Chemical Industry also increased significantly, currently rising to the level of 1,610 yuan/ton. Taking the average sales volume of 1.02 million tons in a single quarter last year as a reference, and assuming that the gross profit margin is the same as that of last year, the contribution of Yangmei Chemical's urea products to the company's revenue in the fourth quarter is expected to reach 220 million yuan. However, due to the company's huge losses in the first three quarters of this year, Yangmei Chemical's annual profit is likely to be negative this year. Yangmei Chemical's attributable net profit in the first three quarters was -753 million yuan.

Urea operating rate is low and tariffs are removed, prices rise for 13 consecutive weeks Author/Source: China Agricultural Materials Herald Network Date: 2017-01-05 Click rate: 27 Last week (December 26-December 30), the operating rate of the urea market remained low, the removal of tariffs released policy dividends, and prices rose for 13 consecutive weeks. On January 3, the China Urea Wholesale Price Index (CNPI) was 1685.80 points, a month-on-month increase of 31.69 points, or 1.92%. ； A year-on-year increase of 129.01 points, an increase of 8.29% ； It dropped 177.45 points from the base period, or 9.52%. ； China Urea Retail Price Index (CNRI) was 1769.38 points, an increase of 56.73 points or 3.31% month-on-month. ； A year-on-year increase of 86.51 points, an increase of 5.14% ； It fell 135.58 points or 7.12% from the base period. 　　supply situation: The environmental protection situation remained severe last week, and the operating rate of urea companies remained low. Among them, the overall operating rate of domestic urea companies remains at about 49%, and the operating rate of Qitou companies remains at about 30%. After the news of the cancellation of nitrogen fertilizer export tariffs was announced last week, urea companies that had been losing money for a long time immediately grabbed the policy dividends. Coupled with the low operating rate of urea and tight supply, the quotation price rose sharply by nearly 100 yuan/ton. In the coal market, prices remain high, supported by heating and methanol production ； In terms of synthetic ammonia, the shipment situation has improved and prices have increased slightly. 　　demand situation: In the near future, there is generally no demand for domestic agriculture ； In terms of industry, compound fertilizer companies were still constrained by insufficient transportation capacity last week. It was difficult to purchase some raw materials such as potassium fertilizers. The shipment of compound fertilizer products was blocked. Coupled with the pressure on environmental protection and the increase in by-product hydrochloric acid inventory, the operating rate of compound fertilizers remained low and the demand for urea was weak. ； In terms of exports, trading slowed down last week near the end of the year and export volumes were low. 　　international market: Internationally, as the New Year approaches, trading has slowed down and prices have stabilized. Among them, the FOB price of small particle urea in the Baltic Sea remained at 213-220 US dollars/ton. ； Black Sea small particle urea FOB price remains at 232-240 US dollars / ton ； The FOB price of small granular urea in China remains at US$230-235/ton. 　　Situation in various regions: Last week, urea prices rose mainly in various domestic regions. Among them, the wholesale and retail prices of urea in Beijing, Tianjin, Shanxi, Shanghai, Jiangsu, Anhui, Fujian, Shandong, Henan, Hubei, Guangdong, Guangxi, Chongqing, Sichuan, Shaanxi, Xinjiang and other places increased by 5-150 yuan/ton. The wholesale and retail prices of urea in Hunan and Yunnan fell by 40 yuan/ton and 25 yuan/ton respectively, while prices in other regions remained stable. 　　In the near future, there is basically no domestic agricultural demand for urea. ； In terms of industry, the production and sales process of compound fertilizer companies are hindered, and the demand for urea is weak. ； International trading slowed down. On the supply side, the operating rate of urea continues to remain low and the supply is small. To sum up, under the support of high raw material prices, the urea market is expected to grow steadily and slightly in the near future. It is necessary to pay attention to changes in environmental protection policies and coal prices. (Yang Wenchao)