Thread Content
Urea price trends across China on August 27 Author/Source: Yuege Agri-Materials Network Date: 2019-08-27 Clicks: 9 The domestic urea market continued to show a downward trend; trading activity was weak, downstream demand was low, companies received few new orders, and there was some pressure in terms of sales. A pessimistic sentiment dominated the market. On the supply side, recent plans by some companies to shut down for maintenance, along with environmental restrictions in the Jincheng area of Shanxi, have led to a decline in production rates to around 62%, resulting in a daily output of approximately 149,000 tons. On the demand side, the agricultural market is still in the off-season for fertilizer use. After a few dealers stocked up on fertilizers last week, they have reverted to a wait-and-see attitude, resulting in few transactions in the agricultural market. The next peak period for urea use in China will be during the autumn fertilization period from late September to early October. The areas where urea is used in relatively large quantities during this period are mainly northern Anhui, southern Henan, and some regions in Jiangsu, while usage is relatively low in other areas. In the industrial sector, the operation of plywood factories in Linyi, Shandong, has seen a slight recovery, but there has not been a significant increase in production. New environmental inspections in the area have once again suppressed industrial demand there. The production at compound fertilizer factories is currently relatively stable, and manufacturers tend to purchase urea raw materials as needed. 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-particle urea in the Shandong region remain stable: Yangmei Pingyuan offers 1,755 yuan per ton, with no changes in price; Ruixing Chemical offers 1,800 yuan per ton, also with stable prices; Mingshui Chemical offers 1,900 yuan per ton, again with stable prices. Overall, today the ex-factory prices of urea in Shandong region remained relatively stable; the actual transaction prices are subject to 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. Yangquan Plain Chemical Co., Ltd. quotes a price of 1,755 yuan per ton for urea. Specifications of urea: Usage: for agricultural purposes; Grade: premium grade; Particle size: medium and 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 1,800 yuan per ton. Specifications of urea: Usage: for agricultural purposes; Grade: premium grade; Particle size: medium and small particles. This quote is valid for 3 days. Quotation provider: Shandong Ruixing Chemical Co., Ltd. Shandong Jinmei Mingshui Chemical Group Co., Ltd. offers a price of 1,900 yuan per ton for urea. Specifications of urea: Usage: for agricultural purposes; Grade: premium grade; Particle size: medium and small particles. 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 1,790–1,800 yuan per ton, while in the Heze market it is approximately 1,780 yuan per ton. Some companies have reduced their prices by 20–30 yuan per ton. In Hebei province, the ex-factory price for small particles is 1,730–1,790 yuan per ton, with some companies lowering their prices by 20 yuan per ton. In Henan province, the typical ex-factory price for small particles is 1,760–1,800 yuan per ton, with some companies reducing their prices by 10–20 yuan per ton. In Anhui province, the typical ex-factory price for small particles remains stable at around 1,850–1,880 yuan per ton. In Jiangsu province, the typical price for small and medium-sized particles is also stable at around 1,850–1,900 yuan per ton. In Shanxi province, the price for large and small particles is around 1,680–1,690 yuan per ton, with a decrease of 10 yuan per ton. In Inner Mongolia, the typical transaction price for small and medium-sized particles is around 1,550–1,600 yuan per ton, remaining stable for now. In Hubei province, the typical price for small particles is 1,830–1,850 yuan per ton, stable as well. In Shaanxi province, 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, both remaining stable. In Guangxi province, the typical wholesale price for small and medium-sized particles is around 1,940–1,950 yuan per ton, stable as well. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,780–1,860 yuan per ton, stable. In Guangdong province, the typical wholesale price for small particles is 1,970–1,990 yuan per ton, stable. In Xinjiang province, the ex-factory and transaction prices are 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 produced by local manufacturers is around 1,700 yuan per ton, stable. In Liaoning province, the price for small urea particles transported by truck is around 1,760–1,860 yuan per ton, with prices subject to negotiation; the market remains stable. There is limited support from domestic export orders, and fertilizer preparation has started slowly in most regions. As a result, demand from compound fertilizer factories and plywood manufacturers has not increased significantly, leading to limited demand overall. Dealers remain cautious when purchasing goods and are waiting to see how things develop, with a generally cautious attitude. Due to the presence of cheaper supplies, higher prices are also declining. There are no positive factors that could boost prices in the current market. It is expected that urea prices will remain weak in the near term. Attention should be paid to international developments and domestic demand trends.