Urea price trends across China on August 21

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Urea price trends across China on August 21 Author/Source: Yuege Agri-Materials Web Date: 2019-08-21 Clicks: 2 The domestic urea market remains stable; following price increases by some companies recently, middlemen have become more cautious in their purchases, and a sense of wait-and-see has once again emerged in the market. On the supply side, some companies carried out maintenance work in mid-August, causing the operating rate of urea producers to drop to around 63%, which led to a decline in available spot supplies. On the demand side, downstream demand has shown a slight improvement at present. The agricultural sector is in its off-season, and agricultural distributors are being cautious about stocking fertilizers. In the industrial sector, demand for urea has seen a slight increase; driven by the tendency to buy when prices rise and avoid buying when they fall, some downstream factories have started to restock slightly. Meanwhile, plywood manufacturers in the Linyi area of Shandong are also gradually recovering. Fertilizer compound manufacturers continue to purchase goods based on their actual needs. The international urea market, whose prices have been falling for three weeks, shows no sign of improvement, with more negative news emerging once again. Due to the strength of the US dollar, currencies around the world have been affected; as a result, India’s currency depreciated, leading to the postponement of the next round of urea bidding. International buyers who had been paying attention to the situation at the end of August and even early September have temporarily withdrawn, causing offshore prices in various countries to drop again. According to foreign media reports, in late August, the FOB price of small-grained urea in Uzhhorod dropped by 6–7 dollars, reaching 242–245 dollars per ton; the FOB price of small-grained urea in the Baltic Sea region fell by 5–8 dollars, coming to 242–250 dollars per ton. In China as well, there was a decrease of 5–8 dollars, with the current price at 260–262 dollars per ton. In fact, weak international demand is also contributing to the formation of a seller’s market. India’s decision to delay purchases is quite rational, and it represents an excellent opportunity for strategic maneuvering. Under these circumstances, China’s urea exports may face price constraints in the future. It is expected that the domestic urea market will remain stable with only slight fluctuations in the short term. The prevailing ex-plant prices for small-grained urea in the Shandong region remain stable: Yangmei Pingyuan offers 1,755 yuan per ton, with no changes in price; Ruixing Chemical offers 1,780 yuan per ton, also with stable prices; Mingshui Chemical offers 1,920 yuan per ton, again with stable prices. Overall, the ex-plant price of urea in Shandong region remains 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 the Shandong region, the ex-factory price for small and medium-sized particles is 1,780–1,830 yuan per ton. In the Linyi market, the transaction price is around 1,830 yuan per ton, while in the Heze market it is around 1,810 yuan per ton, with prices remaining stable. Yangmei Pingyuan Chemical Co., Ltd. lists the price of urea at 1,755 yuan per ton. Urea specifications: Purpose: Agricultural use; Grade: Premium; Particle size: Medium to small particles. 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. Urea specifications: Purpose: Agricultural use; Grade: Premium; Particle size: Medium to small particles. 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 1,920 yuan per ton. Urea specifications: Purpose: Agricultural use; Grade: Premium; Particle size: Medium to small particles. This quote is valid for 3 days. Quotation provider: Shandong Jinmei Mingshui Chemical Group Co., Ltd. The ex-factory price of small particles in Hebei region remains stable at 1,790–1,830 yuan per ton. In Henan region, the mainstream ex-factory price for small particles is also stable at 1,780–1,810 yuan per ton. In Anhui region, the mainstream ex-factory price for small particles is around 1,850–1,880 yuan per ton, with no changes. In Jiangsu region, the mainstream prices for small and medium-sized particles are around 1,850–1,920 yuan per ton, stable as well. In Shanxi region, the price for large and small particles is around 1,700 yuan per ton, stable. In Inner Mongolia region, the mainstream transaction price for small and medium-sized particles is around 1,550–1,600 yuan per ton, stable. In Hubei region, the mainstream price for small particles is 1,830–1,850 yuan per ton, stable. In Shaanxi region, the local sales price for small and medium-sized particles is around 1,770 yuan per ton, while the price for shipments to other areas is around 1,720 yuan per ton, stable. In Guangxi region, the mainstream 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 1,780–1,860 yuan per ton, stable. In Guangdong region, the mainstream wholesale price for small particles is 2,000 yuan per ton, stable. In Xinjiang region, the ex-factory transaction price is around 1,400–1,480 yuan per ton, stable. In Jilin region, the price for small urea particles produced there is around 2,000 yuan per ton, stable. In Heilongjiang region, the transaction price for small urea particles produced by local manufacturers is around 1,730 yuan per ton, stable. In Liaoning region, the price for small urea particles transported by truck is around 1,820–1,860 yuan per ton, with the actual price subject to negotiation, stable. Regarding futures, the main urea contract (UR001) opened at 1,743.0000 yuan yesterday and closed at 1,741.0000 yuan, showing a decrease of 2.0000 yuan compared to the previous trading day, which corresponds to a change rate of (-0.12%). The settlement price was 1,741.0000 yuan. The open interest of the main contract decreased by 2,832 contracts, with a total of 114,896.0000 contracts traded during the day. In terms of trading positions: the combined position held by both parties is 47,108 lots. The long position held by multiple parties totals 19,975 lots; the member with the largest long position is Yongan Futures, which increased its position by 46 lots today. The long position volume is 2,009 lots, accounting for 10.06% of the total long positions; the short position volume is 27,133 lots, with Yongan Futures being the member with the largest short position, which decreased by 200 lots today. The short position volume is 8,854 lots, accounting for 32.63% of the total short positions.