Urea price trends across China on August 23

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Urea price trends across China on August 23 Author/Source: Date: 2019-08-23 Clicks: 1 Urea prices in areas such as Lianghe in Shandong remain stable for now, while prices in Hubei have seen a slight increase. Today, the quotes from some urea manufacturers have seen a slight decline, but thanks to prior orders, these quotes are unlikely to drop significantly in the short term. In the future, attention should be focused on changes in manufacturers’ production levels, the supply of raw materials, and prices. The domestic urea market remains stable overall, with only slight fluctuations in some areas. The overall production capacity stays low, and most manufacturers have sufficient pre-orders, so there is no pressure to ship goods at the moment. In Shandong province, the main export prices for urea remain stable at 1950–1960 yuan. A few factories have reduced their prices slightly in recent days due to overly high pricing; as a result, there are relatively few new orders at high prices, with most companies focusing on fulfilling previous orders. In Hebei province, the main export prices for urea stay steady at 1950–1980 yuan. There are few transactions at high prices, as most of the major suppliers serve the industrial needs related to compound fertilizers, so there is no pressure on sales. Companies mainly focus on fulfilling previous orders while taking on a moderate number of new orders. In Henan province, the main export prices for urea remain stable at 1925–1960 yuan. Most large factories supply products to regions such as Jiangsu, Shandong, and Hubei. In Shanxi province, the main export price for urea is 1900 yuan. Factory operations remain stable for now, and there are rumors that local production might be restricted by 30% in the future. Most factories are controlling the number of orders they take on, but there are few new orders at high prices. In Anhui province, the main export prices for urea remain stable at 2000–2010 yuan. A few companies are still shut down, but there are sufficient orders waiting to be fulfilled. Given the existing industrial demand in the surrounding areas, prices are unlikely to drop significantly in the short term. In Hubei province, the main export prices for urea have risen to 1980–2000 yuan, as there is still demand from nearby areas, and companies are supplying products in moderation. In Jiangsu, the mainstream price for small and medium-sized particles remains stable at 2,010–2,040 yuan per ton. In Shaanxi, the local selling price for such particles is around 1,950–1,960 yuan per ton, while the price for shipments to other areas remains stable at 1,953 yuan per ton. In Guangxi, the prevailing transaction price for small and medium-sized particles is around 2,050 yuan per ton, with no changes. In Sichuan, the transaction price for these particles is around 1,970–2,020 yuan per ton, also stable. In Guangdong, the mainstream transaction price for small particles remains stable at around 2,120–2,140 yuan per ton. In Xinjiang, the reference ex-factory price for small and medium-sized particles is 1,450–1,550 yuan per ton, with no changes. In Jilin, the ex-factory price is around 1,950 yuan per ton, stable as well. Daqing Petrochemical in Heilongjiang does not currently provide any pricing information, so its price remains stable. In Liaoning, Huajin Chemical’s price for products shipped by road is around 1,930 yuan per ton. The reference price for coal-based chemicals in the north is 1,928 yuan, also stable. Due to the continuous rise in prices, some suppliers are feeling uneasy and have increased their purchases; overall, market liquidity remains decent. However, as prices keep rising, purchasing activity is gradually decreasing. Yet, urea manufacturers have sufficient pre-orders, so they face no sales pressure at present, and they continue to maintain their current price levels. The market is expected to remain stable and cautious in the short term. The domestic urea market is showing a downward trend despite stability; most manufacturers maintain firm pricing, though some have begun to reduce it. In certain markets, there has been a significant drop from the slight adjustments seen yesterday to today. This round of price increases has now come to an end. The main driving force behind it was the positive expectations held by large and medium-sized businesses regarding the market, and downstream customers also stepped in to some extent, which allowed this price increase trend to last for over a month and a half; in many areas, the increase was around 150 yuan per ton. The actual domestic demand is limited; rising prices also bring associated procurement risks. Moreover, export volumes are limited after all, so most of the goods still end up back in the domestic market. With current orders not being readily accepted by the end-users, and given the change in market sentiment, the market trend has stabilized with a tendency toward decline. However, there are still positive factors at play; the international market remains on an upward trend, and there are many variables regarding domestic production activities. As a result, manufacturers are once again seeking new price points for balance. Although the market may experience a pullback, the extent of such a pullback is likely to be limited for now.