Urea price trends across China on August 16

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Urea price trends across China on August 16 Author/Source: Yuege Agri-Materials Network Date: 2019-08-16 Clicks: 29 As of August 16, overall demand remains weak; most players in the industry are adopting a cautious attitude and have no intention of making large purchases. The domestic urea market is expected to see fluctuations in the short term. Looking at the past three years, August has generally been the lowest point of the year; therefore, with current weak demand for spot goods, it will take some time before the market truly picks up momentum. Regarding agricultural demand, in August, the demand for agricultural urea declined across many regions in the country; agricultural distributors were cautious about stocking up on fertilizers, opting to wait and see rather than take action. In terms of industrial demand, due to environmental inspections, the operating rates of plywood factories in the Linyi area of Shandong remain low, resulting in a fairly average demand for industrial urea. The production activities of fertilizer factories downstream are generally stable; in autumn, the majority of fertilizers produced are those high in phosphorus and potassium, so there is not much demand for urea, and ammonium chloride can be used as a substitute. Fertilizer manufacturers are increasingly reluctant to purchase urea at high prices and prefer to order only what they need. (Urea 001) The opening price of the main contract (UR001) was 1770.0000 yuan, while the closing price was 1732.0000 yuan, representing a decrease of 11.0000 yuan compared to the previous trading day; the percentage change was (-0.63%). The settlement price was 1745.0000 yuan. The open interest of the main contract decreased by 38,626 contracts, with a total of 580,890.0000 contracts traded during the day. In terms of spot markets, the domestic urea market remained stagnant today. The situation regarding purchases by some manufacturers improved slightly, and as some companies planned maintenance work in the middle of the month, spot supply decreased a bit. However, overall demand remained weak, with a clear tendency among industry players to wait and observe. Today, some manufacturers in Shandong, Jiangsu, and Anhui regions have raised prices by 10 yuan per ton. The ex-factory price of Anhui Hong Sifang small-grain urea is 1,840 yuan per ton; prices are negotiable on a case-by-case basis. The plant is operating normally, with a daily production of 1,000 tons and a small amount of inventory. A portion of the supply is for internal use, with limited quantities available for sale outside. New orders are moderate, with steady sales volume. The urea production facility at Hubei Yihua has stopped operating. The urea market in Hubei region is operating at a stable but weak level, with insufficient demand support; it is expected that the market will remain sluggish in the short term. Currently, the mainstream ex-factory price for small particles in the market is around 1,830 yuan per ton. The prevailing ex-plant prices for small-grain urea in the Shandong region have seen a slight increase: Yangmei Pingyuan offers 1,850 yuan per ton, with prices remaining stable for now; Ruixing Chemical quotes 1,780 yuan per ton, indicating a slight rise of 20 yuan per ton; Mingshui Chemical lists 1,910 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 prices of urea are expected to remain stable at low levels in the coming period. Yangmei Pingyuan Chemical Co., Ltd. quotes 1,865 yuan per ton for urea. Specifications of urea: Purpose: Agricultural use; Grade: Top grade. This quote is valid for 3 days. Quotation provider: Yangmei Pingyuan Chemical Co., Ltd. Shandong Ruixing Chemical Co., Ltd.’s quote for urea is 1,780 yuan per ton. Specifications of urea: Purpose: Agricultural use; Grade: Top grade. This quote is valid for 3 days. Quotation provider: Shandong Ruixing Chemical Co., Ltd. The quotation provided by Shandong Jinmei Mingshui Chemical Group Co., Ltd. for urea is 1,910 yuan per ton. Specifications of urea: Purpose: Agricultural use; Grade: Top grade. This quote is valid for 3 days. Quotation provider: Shandong Jinmei Mingshui Chemical Group Co., Ltd. In Shandong province, the ex-factory price for small and medium-sized particles is 1,730–1,830 yuan per ton. In the Linyi market, the transaction price is around 1,810–1,820 yuan per ton, while in the Heze market it is approximately 1,790 yuan per ton. Some companies have raised their prices by 10 yuan per ton. In Hebei province, the ex-factory price for small particles remains stable at 1,760–1,830 yuan per ton. In Henan province, the typical ex-factory price for small particles is also stable at 1,780–1,810 yuan per ton. In Anhui province, the typical ex-factory price for small particles is around 1,840–1,880 yuan per ton, with some companies raising their prices by 10 yuan per ton. In Jiangsu province, the typical price for small and medium-sized particles is around 1,860–1,920 yuan per ton, with some companies increasing their prices by 10 yuan per ton. In Shanxi province, the price for large and small particles is around 1,690–1,730 yuan per ton, remaining stable. In Inner Mongolia, the typical transaction price for small and medium-sized particles is around 1,550–1,600 yuan per ton, showing a downward trend. In Hubei province, the typical price for small particles is 1,830–1,850 yuan per ton, also on the decline. In Shaanxi province, the ex-factory price for small and medium-sized particles is around 1,700–1,770 yuan per ton, remaining stable. In Guangxi province, the typical wholesale price for small and medium-sized particles is around 1,950 yuan per ton, stable as well. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,780–1,900 yuan per ton, stable. In Guangdong province, the typical wholesale price for small particles is 2,000 yuan per ton, stable. In Xinjiang province, the transaction price is around 1,400–1,480 yuan per ton, stable. In Jilin province, the price for small urea particles is around 2,000 yuan per ton, stable. In Heilongjiang province, the transaction price for small urea particles is around 1,730 yuan per ton, stable. In Liaoning province, the price for small urea particles transported by truck is 1,820–1,860 yuan per ton, with the actual price subject to negotiation, still stable. The international urea market remains under pressure and on a downward trend; demand is below average, while urea manufacturers have relatively ample supply. There are no signs of improvement in the international market in the near future. Currently, urea sales in India are performing well; the inventory level in July was 550,000 tons, compared to 815,000 tons in the same period last year. Foreign media speculate that India may issue another tender at the end of August or in September.