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Urea price trends across China on August 26 Author/Source: Yuege Agri-Materials Website Date: 2019-08-26 Clicks: 38 The domestic compound fertilizer market is expected to remain stable with only minor adjustments; no significant fluctuations are anticipated. Companies fulfill previous orders, with shipping being the main focus. Demand at the grassroots level remains limited; dealers adopt a cautious approach, ordering goods only as needed, which results in slow growth in new orders. Fertilizer companies across the country are holding corporate ordering events to help distributors establish distribution channels and boost the market. Under the policy, individual applications are processed one by one, with a discount of 30–50 yuan per ton. Weak market conditions for raw materials have led to a sluggish market for autumn fertilizers. Coupled with negative factors such as natural disasters, environmental inspections, narrow profit margins at the grassroots level, and slow demand growth, compound fertilizers are likely to remain in a state of weak stability in the short term. Recently, under environmental pressure, the operating rate of compound fertilizer plants has experienced slight fluctuations. The successive holding of manufacturers’ order meetings may provide a slight boost to the market. Currently, the average ex-factory price of 45% Cl(15-15-15) compound fertilizers across the country is between 1,950 and 2,050 yuan per ton (the same unit is used thereafter); the average ex-factory price of 45% S(15-15-15) compound fertilizers is around 2,200 to 2,350 yuan per ton. The provisional ex-factory price for some 45% chlorine-based high-nitrogen, high-phosphorus wheat fertilizers (25:14:6) is around 2,050 to 2,250 yuan per ton, with certain discounts available for transactions that are finalized. In the middle and late August, the shipment of fertilizer for autumn wheat begins, with deliveries mainly taking place in regions such as Hubei, Jiangsu, and Anhui. The orders for shipments are still primarily those from earlier periods; there are few new orders. In some areas, there is a shortage of fertilizer, and logistics vehicles are in short supply. However, since it is still some time before the fertilizer will be needed in the Hebei region of Shandong, shipments of fertilizer for autumn wheat there remain slow. Recently, environmental inspection requirements in Shandong province have been quite strict, which has slightly hindered the operations of compound fertilizer manufacturers. At present, the average operating rate of most large-scale compound fertilizer companies is around *%, a 2 percentage point drop from last week. Raw material prices have been fluctuating frequently recently, but most companies have already received payment for their first batch of deliveries; therefore, prices will remain stable in the short term. Overall, most compound fertilizer companies have enough orders to meet until the end of August, so there is little likelihood of significant changes in their pricing for such fertilizers in the near future.