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Urea price trends across China on July 22 Author/Source: Date: 2019-07-22 Clicks: 4 Today’s daily urea price report: The latest ex-factory prices from urea manufacturers; market activity is weak, new orders from manufacturers are not flowing in easily, downstream buyers are cautious, and there is a strong tendency to wait and see. Domestic market demand provides limited support; agricultural demand in regions such as the Northwest and Central China has essentially come to an end. The operation rates of industries involved in manufacturing industrial sheets and compound fertilizers are both below 50%, with purchases being made based on market conditions. The domestic urea market is expected to experience steady fluctuations on a modest scale in the short term. In terms of domestic trade, agricultural demand in the Shandong, Jiangsu, and Anhui river regions is gradually declining. In the Linyi area, restrictions on vehicle use by rubber sheet factories have led to a decrease in demand; as a result, prices have fallen slightly in a reasonable manner recently, with higher-end prices moving closer to lower-end levels. There is still demand for rice in the southern regions, while the southwest region sees prices at low levels due to previous drops. Driven by favorable policies, downstream traders have shown increased enthusiasm for purchasing, leading to rising prices; prices in neighboring regions such as Guangdong and Guangxi have also strengthened as a result. On the supply side, the average daily urea production this week dropped slightly to 150,000 tons, with an operating rate of 64.75%, which remains high. Due to the lack of strong short-term positive factors in the domestic market, it is expected that export demand will serve as a source of support in the future. In the orders being discussed between traders and manufacturers at present, prices are likely to continue falling, gradually aligning with export prices. Recently, demand for urea in the domestic market has been weak, and negotiations among exporters remain stuck; no significant progress is expected in the short term. Overall, market activity is low. Urea manufacturers in key production areas such as Shandong and Shanxi continue to operate at high levels, so the situation of supply exceeding demand is likely to persist for now. The market is awaiting new positive developments. The short-term domestic urea market is likely to remain stable or experience a slight decline. The standard ex-factory price of urea in Shandong is 1,880–1,900 yuan; in Hebei, it is 1,860–1,930 yuan. In Henan, the standard ex-factory price is also 1,860–1,900 yuan, while in Shanxi it is 1,770–1,780 yuan, with large-grain urea costing 1,780 yuan. In Anhui, the standard ex-factory price of urea is 1,940–1,950 yuan. The mainstream ex-factory price of urea in Jiangsu is around 1,990 yuan, while in Hubei it is about 1,920 yuan. In Inner Mongolia, the mainstream ex-factory price ranges from 1,700 to 1,790 yuan; in Liaoning it is between 1,870 and 1,920 yuan. The price in Heilongjiang is 1,820 yuan. In Sichuan, the mainstream ex-factory price of urea is between 1,850 and 1,920 yuan, whereas in Xinjiang it is between 1,700 and 1,750 yuan.