Thread Content
Urea price trends across China on August 13 Author/Source: Yuege Agri-Materials Network Date: 2019-08-13 Clicks: 35 The domestic urea market continued to show a downward trend, with a strong sense of caution among market participants and weak purchasing interest from downstream users. In key regions such as Shandong and Hebei, transaction prices dropped below 1,800 yuan per ton. On the supply side, only a few urea producers have carried out production cuts or maintenance. Currently, the operating rate of urea plants remains at around 65%, with an average daily output of approximately 158,000 tons. Both the operating rate and daily output are higher than the same period last year, ensuring a relatively ample market supply. On the demand side, entering August, the demand for agricultural urea has generally weakened across many regions in China. Agricultural distributors are being cautious in stocking up on fertilizer and mainly adopting a wait-and-see attitude. In the industrial sector, affected by environmental inspections, the operating rate of downstream plywood mills in Linyi, Shandong remains low; consequently, the market demand for industrial urea remains rather sluggish. The production operations at downstream compound fertilizer plants remain generally stable, with purchases being made primarily based on demand. On the international front, the price of urea in the global market continues to decline under pressure; demand is at a moderate level, while urea manufacturers have relatively ample supply. There are no signs of improvement in the international market situation in the near future. In the short term, the domestic urea market is expected to be under downward pressure. Moving forward, attention should be paid primarily to the procurement plans of compound fertilizer manufacturers. The prevailing ex-factory prices of small-grained urea in the Shandong region have seen a slight decline: Yangmei Pingyuan offers 1,850 yuan per ton, with prices remaining stable for now; Ruixing Chemical quotes 177 yuan per ton, indicating a slight drop of 50 yuan per ton; Mingshui Chemical offers 1,900 yuan per ton, also with a slight decrease of 20 yuan per ton. Overall, today the ex-factory prices of urea in Shandong region saw a slight decline; the actual transaction prices are subject to negotiation. Yangquan Plain Chemical Co., Ltd. quotes a price of 1,865 yuan per ton for urea. Specifications of urea: Usage: for agricultural purposes; Grade: premium grade. This quote is valid for 3 days. Quotation provider: Yangquan Plain Chemical Co., Ltd. The quote from Shandong Ruixing Chemical Co., Ltd. for urea is 1,770 yuan per ton. Specifications of urea: Usage: for agricultural purposes; Grade: premium grade. This quote is valid for 3 days. Quotation provider: Shandong Ruixing Chemical Co., Ltd. Shandong Jinmei Mingshui Chemical Group Co., Ltd.’s quote for urea is 1,900 yuan per ton. Specifications of urea: Usage: for agricultural purposes; Grade: premium grade. This quote is valid for 3 days. Quotation provider: Shandong Jinmei Mingshui Chemical Group Co., Ltd. In the Shandong region, the ex-factory prices for medium and small-sized urea granules range from 1,770 to 1,900 yuan per ton. In the Linyi market, transaction prices are around 1,820 yuan per ton, while in the Heze market, they are approximately 1,800 yuan per ton. Some manufacturers have lowered their quotes by 20–40 yuan per ton. In Hebei, the ex-factory price for small-sized granules is between 1,790 and 1,870 yuan per ton; some companies have reduced their prices by 30–70 yuan per ton. In Henan, the prevailing ex-factory price for small-sized granules is 1,800–1,810 yuan per ton, with some firms cutting their prices by 10 yuan per ton. In Anhui, the typical ex-factory price for small-sized granules is estimated at 1,850–1,980 yuan per ton, showing a downward trend. In Jiangsu, the standard price range for medium and small-sized granules is 1,840–1,900 yuan per ton; certain companies have lowered their quotes by 20 yuan per ton. In Shanxi, the truck transport price for both large and small-sized granules is roughly 1,720–1,730 yuan per ton, with the overall transaction level declining. In Inner Mongolia, the typical transaction price for medium and small-sized granules remains stable at around 1,600–1,690 yuan per ton. In Hubei, the standard price for small-sized granules stays at 1,850–1,880 yuan per ton. In Shaanxi, the ex-factory price for medium and small-sized granules remains steady at about 1,720–1,800 yuan per ton. In Guangxi, the prevailing wholesale price for medium and small-sized granules is around 1,950 yuan per ton, remaining unchanged. In Sichuan, the ex-factory price for medium and small-sized granules stays at 1,800–1,900 yuan per ton. In Guangdong, the standard wholesale price for small-sized granules is 2,000 yuan per ton, with the overall transaction level decreasing. In Xinjiang, the ex-factory transaction price remains stable at 1,780–1,830 yuan per ton. In Jilin, the price for small-sized urea granules is estimated at 2,000 yuan per ton, staying unchanged. In Heilongjiang, the transaction price for small-sized urea from local manufacturers is around 1,750 yuan per ton, also remaining stable. 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. Overall, the urea market continues to experience weak conditions: prices in regions such as Henan, Shandong, and Anhui have dropped by 20–40 yuan per ton, while in Hebei, Xinjiang, and Liaoning, some producers have cut prices by 50–100 yuan per ton. Currently, the agricultural sector is in its off-season, while downstream industrial operations remain at low levels. Additionally, most fertilizers used in autumn are high-phosphorus varieties, resulting in limited demand for urea. As export orders gradually come to an end, distributors are waiting for urea prices to decline before making purchases; they are largely adopting a wait-and-see attitude. The flow of new orders in the domestic market remains sluggish, and pessimism is on the rise. Moreover, due to the recent impact of typhoons, transportation has been somewhat disrupted in many areas. In the short term, negative factors prevail. It is expected that urea prices will continue to trend downward in the near future. Particular attention should be paid to international developments and domestic demand trends.