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Urea price trends across China on September 5 Author/Source: Yuege Agri-Materials Network Date: 2019-09-05 Clicks: 13 The domestic urea market remains stable with no significant changes observed at present. Affected by weak domestic demand, following the recent increase in urea prices, retailers have become less eager to make purchases. Manufacturers are preferentially supplying goods that were ordered in advance, while new orders are few; as a result, the market has once again entered a period of stagnation and consolidation. In terms of operation rates, urea manufacturers are operating at an average rate of around 61%, with a daily production volume of about 143,000 tons. Looking at the operation status in the main production areas, Shandong is operating at around 56% this week, while Henan is operating at around 69%. On the demand side, due to efforts to control air pollution, the operating rates of sheet manufacturing enterprises are low. Compost fertilizer manufacturers handle orders on a small scale as needed, adopting a cautious approach. In the agricultural sector, it is currently the off-season for farming, so market demand is limited. From mid-to-late September to around October, the autumn harvest takes place in regions with two growing seasons per year, and the sales of base compost fertilizers also contribute to an increase in demand for top-dressing and supplementary fertilizers. On the international front, there are slight signs of improvement recently: Ethiopia has issued an annual tender for 600,000 tons, Bangladesh has issued tenders for 100,000 tons each for both large and small quantities, and India is likely to issue new tenders in September. There are positive prospects for the export of urea in the domestic market as well. It is expected that the domestic urea market will remain stable with only slight fluctuations in the short term. Next, the focus will be on international bidding and developments in downstream project commencement. As some maintenance manufacturers resume operations, supply has increased slightly. On the demand side, aside from some demand for autumn fertilization preparations, there is a high level of plant shutdowns in compound fertilizer and plywood manufacturing industries; industrial demand has shrunk significantly. The export situation remains uncertain, and new orders for urea manufacturers are coming in more slowly. Prices remain firm thanks to prior advance orders. The market is expecting new positive developments. Today, the price for medium-sized particles from Shandong Hualu Hengsheng is 1790 (stable), while large-sized particles cost 1910 (stable). In Hebei’s Dongguang region, small-sized particles are priced at 1770 (stable); in Henan’s Xinchuanxin company, the price is 1800 (stable). Shanxi’s Fengxi company lists a price of 1720 (stable), while Jiangsu’s Linggu company charges 1880 (stable). Anhui’s Haoyuan company offers prices ranging from 1850 to 1870 (stable). In Inner Mongolia, Guboda company’s price is 1560 (stable). In Shaanxi, Shaanxi Chemical’s local sales price is 1770 (up 20), while the price for external sales is 1740 (up 20). Xinjiang’s Yankuang company has a price of 1360 (stable). In Shandong province, the ex-factory price for small and medium-sized particles is 1,780–1,850 yuan per ton. In the Linyi market, the transaction price is around 1,840 yuan per ton, while in the Heze market it is around 1,810 yuan per ton; prices remain stable for now. In Hebei province, the ex-factory price for small particles is 1,780–1,820 yuan per ton, with prices also remaining stable. In Henan province, the typical ex-factory price for small particles is 1,780–1,830 yuan per ton, and prices remain stable. In Anhui province, the typical ex-factory price for small particles is around 1,850–1,870 yuan per ton, with prices stable. In Jiangsu province, the typical price for small and medium-sized particles is around 1,860–1,900 yuan per ton, with prices stable. In Shanxi province, the price for large and small particles is around 1,690–1,725 yuan per ton; some companies have raised their prices by 5 yuan per ton. In Inner Mongolia, the typical transaction price for small and medium-sized particles is around 1,520–1,560 yuan per ton, with prices stable. In Hubei province, the typical price for small particles is 1,830–1,850 yuan per ton, with prices stable. In Shaanxi province, the local sales price for small and medium-sized particles is around 1,750–1,770 yuan per ton, while the price for exports is around 1,740 yuan per ton; prices remain stable. In Guangxi province, the typical wholesale price for small and medium-sized particles is around 1,930 yuan per ton, with prices stable. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,780–1,860 yuan per ton, with prices stable. In Guangdong province, the typical wholesale price for small particles is 1,980–1,990 yuan per ton, with prices stable. In Xinjiang province, the ex-factory and transaction prices are around 1,400–1,480 yuan per ton, with prices stable. In Jilin province, the price for small urea particles is around 2,000 yuan per ton, with prices stable. In Heilongjiang province, the transaction price for small urea particles produced by local manufacturers is around 1,700 yuan per ton, with prices stable. In Liaoning province, the price for small urea particles transported by truck is around 1,780–1,840 yuan per ton; negotiation is possible regarding the final price, and some companies have raised their prices by 20 yuan per ton. In terms of futures, the main contract UR001 opened at 1,798.0000 yuan yesterday and closed at 1,791.0000 yuan, a decrease of 11.0000 yuan from the previous trading day, representing a decline of (-0.61%)%. The settlement price was 1,794.0000 yuan. The open interest of the main contract decreased by 2,376 contracts, with a total of 92,794.0000 contracts traded during the day. Factory prices in Shanxi, Inner Mongolia, and Xinjiang remained firm, rising by 10–20 yuan/ton, while high-end prices at factories in Shandong saw a slight decline. Overall, the market transaction atmosphere remains relatively active, with winter stockpiling starting in the Northeast market. Currently, transactions in the domestic market are mainly driven by purchases by traders; coupled with an increase in goods in transit, this adds to existing stock levels, which is expected to help stabilize prices in the southern region. New tender information in India remains a key focus for the market, while the operational rates of industries along the Beijing periphery in mid-September will be one of the main factors influencing market trends.