Urea price trends across China on August 7

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Urea price trends across China on August 7 Author/Source: Yuege Agri-Materials Website Date: 2019-08-07 Clicks: 41 Daily report on urea prices today: The latest ex-factory prices from urea manufacturers; the domestic urea market is operating in a weak state, with manufacturers’ sales performance remaining average, and most urea producers struggling to secure new orders. On the demand side, as we entered August, the demand for agricultural urea in various regions of China declined significantly, and many distributors began to adopt a wait-and-see attitude, waiting for urea prices to drop before making purchases. In the industrial sector, the fertilizers used in agriculture during autumn are typically those high in phosphorus and potassium. Due to the consistently high prices of urea, compound fertilizer manufacturers are being cautious in their purchases; some of them opt to use ammonium chloride instead of urea. Panel manufacturing companies face considerable environmental pressures, resulting in low overall production levels. Production of panels has come to a complete halt in Linyi, Shandong, and there are still no signs of improvement. On the supply side, few urea manufacturers are reducing production for maintenance; the operating rate and daily output of urea plants are higher than those in the same period last year, resulting in an ample supply in the market. Internationally, the impact of the July Indian pricing changes on the domestic market has largely subsided, and the execution of export orders by some companies is nearing completion. It is expected that the domestic urea market will remain stable in the short term, with only slight declines in some areas; going forward, attention will be focused on the purchasing plans of compound fertilizer manufacturers. The prevailing ex-plant prices for small-grained urea in the Shandong region remain stable: Yangmei Pingyuan offers 1,865 yuan per ton, with no changes in price; Ruixing Chemical offers 1,820 yuan per ton, also with stable prices; Mingshui Chemical offers 1,930 yuan per ton, again with stable prices. Overall, the ex-plant price of urea in Shandong region remains stable today, with actual transaction prices determined through negotiation. In the Shandong region, the ex-factory prices for medium and small-sized urea granules range from 1,850 to 1,940 yuan per ton. In the Linyi market, transaction prices are around 1,860 yuan per ton, while in the Heze market, they remain stable at approximately 1,850 yuan per ton. In Hebei, the ex-factory price for small-sized granules is between 1,880 and 1,900 yuan per ton; this figure remains unchanged. In Henan, the prevailing ex-factory price for small-sized granules is 1,820–1,840 yuan per ton; some manufacturers have lowered their prices by 10 yuan per ton. In Anhui, the typical ex-factory price for small-sized granules is 1,860–1,910 yuan per ton; a few manufacturers have reduced their prices by 40 yuan per ton. In Jiangsu, the typical price range for medium and small-sized granules is 1,890–1,920 yuan per ton; some companies have raised their prices by 10 yuan per ton. In Shanxi, the truck transport price for both large and small-sized granules is around 1,750–1,760 yuan per ton; this remains stable. In Inner Mongolia, the typical transaction price for medium and small-sized granules is roughly 1,610–1,690 yuan per ton; no changes observed. In Hubei, the prevailing price for small-sized granules is 1,850–1,880 yuan per ton; this stays constant. In Shaanxi, the ex-factory price for medium and small-sized granules is around 1,720–1,800 yuan per ton; some manufacturers have cut their prices by 50 yuan per ton. In Guangxi, the typical wholesale price for medium and small-sized granules is about 1,950 yuan per ton; no fluctuations noted. In Sichuan, the ex-factory price for medium and small-sized granules is 1,800–1,900 yuan per ton; this remains unchanged. In Guangdong, the typical wholesale price for small-sized granules is 2,010–2,030 yuan per ton; stability prevails. In Xinjiang, the transaction price at the factory level is estimated at 1,780–1,830 yuan per ton; no changes observed. In Jilin, the price for small-sized urea granules is approximately 2,000 yuan per ton; this stays constant. In Heilongjiang, the transaction price for small-sized urea granules offered by manufacturers is around 1,750 yuan per ton; no variations. In Liaoning, the truck transport price for small-sized urea granules is 1,920–1,960 yuan per ton; actual transaction prices are negotiable and remain stable. Recently, in Shandong, Henan, and Hebei, there have been rumors of preemptive production cuts in September as part of efforts to ensure clean air during the National Day holiday. Some compound fertilizer plants are planning to increase output in mid-August. Quotations for goods from Xinjiang continue to influence the trends in the southern market, with a slight downward trend still present. Urea futures were launched on the 9th, and some spot businesses affiliated with futures companies may begin to build up small inventory levels. As the exchange rate crossed 7, inquiries for exports increased. It is expected that the market will remain weak and stable in the short term, with the end of the printing, marking, and loading process next week serving as a turning point for the market.