Urea price trends across China on August 8

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Urea price trends across China on August 8 Author/Source: Yuege Agri-Materials Network Date: 2019-08-08 Clicks: 21 August 8, 2019: Daily report on urea prices. The latest ex-factory prices from urea manufacturers show that the domestic urea market is operating in a weak condition; manufacturers’ sales activity remains moderate, and most of them are having difficulty securing new orders. On the demand side, as we entered August, the demand for agricultural urea in various regions of China declined significantly. Distributors also 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 even use ammonium chloride as a substitute for urea. Panel manufacturing companies face considerable pressure related to environmental regulations, 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 have reduced production for maintenance purposes; 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-particle urea in the Shandong region have seen a slight decline: Yangmei Pingyuan offers 1,850 yuan per ton, with a slight drop of 15 yuan per ton; Ruixing Chemical quotes 1,820 yuan per ton, with prices remaining stable for now; Mingshui Chemical offers 1,930 yuan per ton, also with stable prices at present. Overall, the ex-plant price of urea in Shandong region declined slightly today, with actual transaction prices determined through negotiation. In Shandong region, the ex-factory price for small and medium-sized particles is 1,850–1,940 yuan per ton. In the Linyi market, the transaction price is around 1,850 yuan per ton, while in the Heze market it is around 1,840 yuan per ton, indicating a downward trend in prices. In Hebei region, the ex-factory price for small particles is 1,870–1,900 yuan per ton, with a slight decline. In Henan region, the typical ex-factory price for small particles is 1,820–1,840 yuan per ton, with some manufacturers reducing prices by 10 yuan per ton. In Anhui region, the typical ex-factory price for small particles is around 1,860–1,910 yuan per ton, remaining stable for now. In Jiangsu region, the typical price for small and medium-sized particles is around 1,890–1,920 yuan per ton, also stable for now. In Shanxi region, the price for large and small particles is around 1,740–1,760 yuan per ton, with a downward trend in pricing. In Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,610–1,690 yuan per ton, remaining stable. In Hubei region, the typical price for small particles is 1,850–1,880 yuan per ton, stable for now. In Shaanxi region, the ex-factory price for small and medium-sized particles is around 1,720–1,800 yuan per ton, stable for now. In Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,950 yuan per ton, stable. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,800–1,900 yuan per ton, stable. In Guangdong region, the typical wholesale price for small particles is 2,010–2,030 yuan per ton, stable. In Xinjiang region, the ex-factory price is around 1,780–1,830 yuan per ton, stable. In Jilin region, the price for small urea particles is around 2,000 yuan per ton, stable. In Heilongjiang region, the transaction price for small urea particles from manufacturers is around 1,750 yuan per ton, stable. In Liaoning region, the price for small urea particles transported by truck is 1,920–1,960 yuan per ton, with prices negotiable; overall, prices remain stable. Domestic urea prices have seen a slight decline, with more noticeable drops in key regions. This is mainly due to weak domestic demand and limited new orders. Manufacturers are tentatively lowering prices to attract customers, but these prices still fall short of what traders expect, so order volumes remain low. Some manufacturers still have orders that need to be shipped within a few days, so their prices remain firm. However, as shipping dates approach, manufacturers face greater sales pressure, leading to a relaxation in market prices, and consequently, their quoted prices will also decrease.