Urea price trends across China on August 12

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Urea price trends across China on August 12 Author/Source: Yuege Agri-Materials Web Date: 2019-08-12 Clicks: 40 August 12, 2019: Daily report on urea prices. The latest factory prices for urea show a stable but weak market trend in China; trading activity is low and there is a strong atmosphere of caution among market participants, with most urea manufacturers struggling to secure new orders. On the demand side, as we entered August, the demand for agricultural urea in various regions of the country declined significantly. Dealers 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 usually those high in phosphorus and potassium. Due to the consistently high prices of urea, compound fertilizer manufacturers are cautious about 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 have reduced 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. The mainstream ex-factory price of urea in Shandong is 1,820–1,860 yuan. In Linyi, compound fertilizer manufacturers pay 1,840 yuan per unit of urea. In Hebei, the mainstream ex-factory price of urea is 1,850–1,900 yuan. In Henan, it is 1,800–1,810 yuan. In Shanxi, the mainstream ex-factory price of urea is 1,715–1,725 yuan. In Anhui, it is 1,840–1,860 yuan. In Jiangsu, the mainstream ex-factory price of urea is 1,880 yuan. In Hubei, it is 1,850–1,860 yuan. Currently, the mainstream ex-factory price in Liaoning is 1870–1920 yuan, while in Heilongjiang it is 1750 yuan. In Shaanxi, the mainstream ex-factory price for urea is 1806 yuan; in Sichuan, it ranges from 1850 to 1920 yuan. In Xinjiang, the mainstream ex-factory price for urea is 1450–1650 yuan. In the main production areas, urea manufacturers have reduced prices by only 20–30 yuan; in Shanxi, prices have generally dropped by 20–30 yuan. In the northwest region, the price drops were significant this week, with large declines in places such as Xinjiang and Shaanxi, amounting to 50 yuan in some cases, and even up to 150 yuan in certain instances. A large volume of goods from Xinjiang and Shaanxi is moving southward, putting pressure on prices in the Guangdong and Guangxi regions as well as in the southwest area. The export prices in Sichuan are declining; the industrial price has fallen below 1,800 yuan. Some facilities in the Northeast have switched to producing liquid ammonia. The export prices in Henan continue to reach new lows, while manufacturers in Jiangsu and Anhui face increasing inventory pressures. 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. (Compiled by Yuege Agri-Inputs Network; sources: Urea Network, China Fertilizer Network, Fertilizers Can Volatilize)