Urea price trends across China on August 9

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Urea price trends across China on August 9 Author/Source: Yuege Agri-Materials Network Date: 2019-08-09 Clicks: 5 Daily report on urea prices today: The latest ex-factory prices from urea manufacturers show that the domestic urea market is operating in a weak state. Manufacturers are still selling at relatively normal levels, and most of them are having difficulty securing new orders. On the demand side, as we entered August, agricultural urea demand declined across many areas in China. Distributors also began to adopt a wait-and-see attitude, waiting for urea prices to fall so as to buy at lower costs. In Shanxi, with the upcoming opening of the Second Youth Games, only a few enterprises’ factories were temporarily affected and would go into shutdown mode; supply would decrease slightly in the future, while overall demand remained weak. There are no signs yet of a price rebound. Recently, the demand for urea in the market has been relatively weak; some manufacturers are focusing on exports as well as fulfilling orders that were pending from earlier in the year. Prices are likely to remain stable in the short term, but there are still signs of a downward trend. The prevailing ex-plant prices for small-grain urea in the Shandong region remain stable: Yangmei Pingyuan offers 1,850 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 prices of urea in Shandong region remain stable today, with actual transaction prices determined through negotiation. The enthusiasm for purchasing at the downstream end is moderate, and urea prices are expected to remain stable at low levels in the coming period. In Shandong region, the ex-factory price for small and medium-sized particles is 1,830–1,860 yuan per ton; some companies have reduced their prices by 80 yuan per ton. In the Linyi market, the transaction price is around 1,840–1,860 yuan per ton. In Hebei region, the ex-factory price for small particles remains stable at 1,870–1,900 yuan per ton. In Henan region, the typical ex-factory price for small particles is 1,810–1,830 yuan per ton, with some companies reducing their prices by 10 yuan per ton. In Anhui region, the typical ex-factory price for small particles is around 1,840–1,860 yuan per ton, though the actual transaction price can be negotiated; some companies have reduced their prices by 50 yuan per ton. In Jiangsu region, the typical price for small and medium-sized particles is around 1,880 yuan per ton, with a slight decline. In Shanxi region, the price for large and small particles is around 1,730–1,740 yuan per ton, with some companies reducing their prices by 20 yuan per ton. 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, also stable. In Shaanxi region, the ex-factory price for small and medium-sized particles is around 1,720–1,800 yuan per ton, remaining stable. 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 1,800–1,920 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 and transaction prices are 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 produced by local manufacturers is around 1,750 yuan per ton, stable. In Liaoning region, the price for small urea particles transported by road is around 1,920–1,960 yuan per ton, with the actual price negotiable; it remains stable. With an ample supply and weak demand, the bearish sentiment in the market is becoming increasingly strong. Downstream, prices are expected to fall further, and there is a wait for an opportunity to buy at lower prices. Although urea manufacturers have not made any significant adjustments to their quotes, there is considerable room for negotiation in actual transactions, with prices often being quoted higher than the actual settlement price. Previous orders have been completed, but revenue from new orders is not satisfactory; it is expected that domestic urea prices will decline next week.