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Urea price trends across China on September 17 Author/Source: Date: 2019-09-17 Clicks: 38 The domestic urea market is operating at a stable but weak level. The bidding for urea in India was opened on the 13th; a total of 12 suppliers submitted valid bids, with an overall supply volume of around 2.22 million tons. The lowest CFR price on the East Coast is 278 USD/ton from Transglobe, which corresponds to a FOB price of 263 USD/ton in China. This is in line with expectations, but it remains to be seen what the actual volume of transactions will be. The current market atmosphere in the domestic market is sluggish; overall demand remains weak. Agricultural demand has stagnated, and industrial compound fertilizer and panel manufacturers are operating at limited capacity, proceeding on a demand-driven basis. It is expected that the domestic urea market will remain stable with slight adjustments in the short term; going forward, attention will be focused on changes in production rates and developments in India’s tender process. The prevailing ex-plant prices for small-grained urea in the Shandong region have seen a slight decline: Yangmei Pingyuan offers 1,800 yuan per ton, with prices remaining stable for now; Ruixing Chemical quotes 1,820 yuan per ton, also with stable prices; Mingshui Chemical offers 1,850 yuan per ton, with a slight drop of 50 yuan per ton. Overall, the ex-plant price of urea in Shandong region dropped slightly today, with actual transaction prices determined through negotiation. The enthusiasm for purchasing at the downstream end is moderate, and it is expected that urea prices will rebound after reaching their bottom. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,810–1,860 yuan per ton. In the Linyi market, the transaction price is around 1,850 yuan per ton, while in the Heze market it is around 1,830–1,840 yuan per ton, with a slight decline in prices. The urea production facilities of Shandong Jinmei Mingshui Chemical Group Co., Ltd. are operating normally, with an annual production capacity of 450,000 tons; the systems are running at full capacity. Small-particle urea costs 1,850 yuan per ton; the price has seen a slight drop of 50 yuan per ton. It is mainly supplied to local and surrounding agricultural buyers. The enthusiasm for purchases downstream is moderate, and the supply of urea is normal. The urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-grain urea costs 1,800 yuan per ton, with prices remaining stable for now; large-grain urea costs 1,920 yuan per ton, also with stable prices at present. Urea powder costs 1,780 yuan per ton, and its price remains stable as well; the actual transaction price is determined through negotiation. The enthusiasm for purchases downstream is moderate, and the supply of urea is normal. The urea production equipment at Shandong Ruixing Chemical Co., Ltd. is operating normally, with an annual production capacity of 1.6 million tons and an operation rate of around 50%. Small-particle urea costs 1,820 yuan per ton; the quoted price remains stable, with the actual transaction price determined through negotiation. The enthusiasm for purchases downstream is moderate, and the supply of urea is normal. The ex-factory price of small particles in Hebei region is 1,820–1,850 yuan per ton, with prices remaining stable for now. The mainstream ex-factory price of small particles in Henan region is 1,800–1,870 yuan per ton; some companies have reduced their prices by 10 yuan per ton. In Anhui region, the mainstream ex-factory price of small particles is around 1,850–1,880 yuan per ton, with prices stable as well. In Jiangsu region, the mainstream price for small and medium-sized particles is around 1,870–1,880 yuan per ton; some companies have lowered their prices by 20 yuan per ton. In Shanxi region, the price for large and small particles is around 1,720–1,730 yuan per ton, with prices stable. In Inner Mongolia region, the mainstream transaction price for small and medium-sized particles is around 1,520–1,600 yuan per ton, with prices stable. In Hubei region, the mainstream price of small particles is 1,830–1,850 yuan per ton, with prices stable. In Shaanxi region, the mainstream local sales price for small and medium-sized particles is around 1,750–1,770 yuan per ton, while the price for external sales is 1,750 yuan per ton, with prices stable. In Guangxi region, the mainstream wholesale price for small and medium-sized particles is around 1,940–1,960 yuan per ton, with prices stable. In Sichuan region, the ex-factory price of small and medium-sized particles is around 1,780–1,860 yuan per ton, with prices stable. In Guangdong region, the mainstream wholesale price of small particles is 2,020–2,040 yuan per ton, with prices stable. In Xinjiang region, the ex-factory transaction price is around 1,400–1,480 yuan per ton, with prices stable. In Jilin region, the price of small urea particles produced there is around 1,800–1,820 yuan per ton, with prices stable. In Heilongjiang region, the transaction price for small urea particles produced by local manufacturers is around 1,700 yuan per ton, with prices stable. In Liaoning region, the price for small urea particles transported by road is around 1,790–1,840 yuan per ton, with prices negotiable. Regarding futures, the opening price of the main urea contract (UR001) on the 12th was 1,811.0000 yuan, while the closing price was 1,817.0000 yuan, representing an increase of 1.0000 yuan compared to the previous trading day. The increase rate was 0.06%. The settlement price was 1,814.0000 yuan. The open interest of the main contract decreased by 4,570 contracts, with a total of 50,736.0000 contracts traded during the day. In Shandong, Jiangsu, Henan, and Hebei, prices dropped by around 10–60 yuan per ton. On the 13th, India issued a tender for a total supply volume of 2.226 million tons. The lowest CFR price on the east coast was offered by Transglobe at 278 USD per ton. Some companies considered these prices too low, which reduced expectations in the trading sector; as a result, prices declined slightly. Coupled with limited domestic demand, compound fertilizer manufacturers adjusted their production according to demand, while there was only occasional sales for agricultural use. Companies mainly focused on fulfilling existing orders, and new orders were placed more slowly. It is expected that urea prices will remain stable in the near term, with only slight declines in certain areas. It is important to keep an eye on tender developments and domestic environmental regulations.