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Urea price trends across China on September 10 / Author/Source: Yuege Agri-Materials Network / Date: 2019-09-10 / Clicks: 17. The domestic urea market is showing a steady upward trend. On September 6, India’s MMTC announced a new round of urea tendering, with the bidding deadline set for September 13. Driven by this news, confidence in making deals has increased slightly, and prices have risen modestly in various regions. Manufacturers are increasingly inclined to hold their prices and wait for further increases. Meanwhile, China may face environmental regulations that restrict production this month, which could lead to a reduction in urea supply. Indian MMTC has issued a tender for urea; the bidding will take place on the 13th, with the latest delivery date being October 16, and the quantity to be purchased is around 1 million tons. Encouraged by this news, new order receipts for urea manufacturers in the main production areas have improved since the weekend; urea manufacturers in Shandong, the Two Rivers region, and other places have raised their prices by 20–30 yuan each. Environmental protection-related production restrictions are set to take effect in regions such as Shanxi, Shandong, and the Two Rivers areas, which is likely to lead to a reduction in market supply. It is expected that the domestic urea market will see slight price increases in the short term; going forward, attention will be focused on changes in production rates as well as developments in bidding activities in India. In Shandong province, the ex-factory price for small and medium-sized particles is 1,800–1,870 yuan per ton. In the Linyi market, the transaction price is around 1,880 yuan per ton, while in the Heze market it ranges from 1,840 to 1,850 yuan per ton. Some companies have raised their prices by 20 yuan per ton. In Hebei province, the ex-factory price for small particles is 1,810–1,830 yuan per ton, with some companies increasing their prices by 10–30 yuan per ton. In Henan province, the typical ex-factory price for small particles is 1,820–1,850 yuan per ton, with overall price increases of 20 yuan per ton. In Anhui province, the typical ex-factory price for small particles is around 1,840–1,880 yuan per ton, with some companies raising their prices by 10–20 yuan per ton. In Jiangsu province, the typical price for small and medium-sized particles is around 1,860–1,900 yuan per ton, with a slight increase in prices for certain companies. In Shanxi province, the price for large and small particles is around 1,690–1,720 yuan per ton, with prices remaining stable for now. In Inner Mongolia, the typical transaction price for small and medium-sized particles is around 1,520–1,560 yuan per ton, with prices staying stable. In Hubei province, the typical price for small particles is 1,830–1,850 yuan per ton, with prices remaining 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 shipments outside the region is 1,750 yuan per ton, with prices remaining stable. In Guangxi province, the typical wholesale price for small and medium-sized particles is around 1,940–1,950 yuan per ton, with a price increase of 10 yuan per ton. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,780–1,860 yuan per ton, with prices remaining stable. In Guangdong province, the typical wholesale price for small particles is 2,000–2,020 yuan per ton, with a price increase of 10–20 yuan per ton. In Xinjiang province, the ex-factory and transaction prices are around 1,400–1,480 yuan per ton, with prices remaining stable. In Jilin province, the price for small urea particles is around 2,000 yuan per ton, with prices remaining stable. In Heilongjiang province, the price for small urea particles produced by local manufacturers is around 1,700 yuan per ton, with prices remaining stable. In Liaoning province, the price for small urea particles transported by truck is around 1,790–1,840 yuan per ton, with prices negotiable, and overall prices remaining stable. In terms of futures, the closing price of the main urea contract (UR001) on September 6 was 1,820.0000 yuan, up 1.0000 yuan from the previous trading day, representing a increase of (0.06)%. The settlement price was 1,818.0000 yuan. The open interest of the main contract increased by 548 lots, with a total of 89,434.0000 lots traded during the day. The opening price of the main urea contract (UR001) today was 1,832 yuan. In Shandong, Henan, Anhui, and Hebei, the price increase ranged from 10 to 40 yuan per ton. As the National Day approaches, urea production facilities in Shanxi plan to reduce output by 30%. There are more maintenance activities planned by companies in Xinjiang this month, which may lead to further tightening of supply. Coupled with increased demand driven by bidding activities, trading activity downstream has picked up. At present, companies in the main production areas are inclined to hold their prices and wait for price increases, while companies in other regions remain cautious. The future trend of the market will depend on actual demand; it is expected that urea prices will remain stable in the near term with occasional increases. Attention should be paid to bidding developments, domestic demand, and environmental regulations.