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Urea price trends across China on September 18 Author/Source: Yuege Agri-Materials Web Date: 2019-09-18 Clicks: 33 The domestic urea market is operating in a weak state; currently, trading activity in the market is low, overall demand remains weak, agricultural demand has stagnated, and industrial fertilizer and panel manufacturers are operating at limited capacity, producing only what is needed. There is a strong atmosphere of caution in the market. The total supply volume for this tender in India is approximately 2.22 million tons. The lowest CFR price on the east coast is offered by Transglobe at 278 USD/ton; this corresponds to an ex-plant price of around 1,700 yuan/ton for urea plants in Shandong and Hebei. Currently, the domestic ex-plant prices for urea at these plants are around 1,800 yuan/ton. 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 as well as developments in bidding activities in India. The prevailing ex-factory prices for small-grain urea in the Shandong region remain stable: Yangmei Pingyuan offers 1,800 yuan per ton, with no changes in its price; Ruixing Chemical offers 1,820 yuan per ton, also with no changes; Mingshui Chemical offers 1,850 yuan per ton, again with no changes. Overall, the ex-plant price of urea in Shandong region remains stable 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. The urea production equipment at Shandong Jinmei Mingshui Chemical Group Co., Ltd. is operating normally, with an annual production capacity of 450,000 tons; the system is running at full capacity. Small-grain urea costs 1,850 yuan per ton; the price remains stable for now, and 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 Shandong Ruixing Chemical Co., Ltd. is operating normally, with an annual production capacity of 1.6 million tons and an operational 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 urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-grained urea costs 1,800 yuan per ton, with prices remaining stable for now; large-grained 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. In the eastern region, the ex-factory price for small and medium-sized particles is 1,800–1,850 yuan per ton. In the Linyi market, the transaction price is around 1,830–1,840 yuan per ton, while in the Heze market it’s approximately 1,820–1,830 yuan per ton. Some companies have reduced their prices by 10 yuan per ton. In the Hebei region, the ex-factory price for small particles remains stable at 1,800–1,850 yuan per ton. In the Henan region, the standard ex-factory price for small particles is also 1,800–1,850 yuan per ton, though some companies have lowered their prices by 10–20 yuan per ton. In the Anhui region, the standard ex-factory price for small particles is around 1,830–1,860 yuan per ton, with some companies reducing their prices by 20 yuan per ton. In the Jiangsu region, the standard price for small and medium-sized particles is around 1,870–1,880 yuan per ton, with no changes in price currently. In the Shanxi region, the price for large and small particles is around 1,700–1,720 yuan per ton, with some companies reducing their prices by 10–20 yuan per ton. In the Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,560–1,600 yuan per ton, with no changes in price. In the Hubei region, the standard price for small particles is 1,830–1,850 yuan per ton, with no changes. In the Shaanxi region, 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 1,750 yuan per ton, with no changes. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,940 yuan per ton, a decrease of 20 yuan per ton. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,780–1,860 yuan per ton, with no changes. In the Guangdong region, the typical wholesale price for small particles is 2,000–2,020 yuan per ton, a decrease of 20 yuan per ton. In the Xinjiang region, the ex-factory price is around 1,400–1,480 yuan per ton, with no changes. In the Jilin region, the price for small urea particles is around 1,800–1,820 yuan per ton, with no changes. In the Heilongjiang region, the price for small urea particles produced by local manufacturers is around 1,700 yuan per ton, with no changes. In the Liaoning region, the price for small urea particles transported by truck is around 1,790–1,840 yuan per ton, with prices negotiable; there are no changes in price currently. In terms of futures, the main urea contract (UR001) opened at 1,819.0000 yuan yesterday and closed at 1,790.0000 yuan, a decrease of 26.0000 yuan from the previous trading day, representing a decline of (-1.43%)%. The settlement price was 1,799.0000 yuan. The open interest of the main contract decreased by 7,548 contracts, with a total of 93,312.0000 contracts traded during the day. In major production areas such as Shanxi, Hebei, Shandong, and Anhui, prices have dropped by 20–30 yuan per ton, while prices in Inner Mongolia remain relatively stable. Prices in Xinjiang have risen from their previous lows. The volume of goods in transit from the southern provinces importing goods has increased significantly, with prices remaining relatively stable. As factories resume operations following maintenance, the daily urea production volume has returned to 150,000 tons. On the demand side, industrial activity remains stable, while agricultural activities in East China and North China have started up on a sporadic basis. It is expected that urea prices will remain weak and range-bound in the short term; however, due to expectations of further tenders in India, the prices resulting from those tenders are likely to serve as a reference for the bottom level of domestic prices in the short term.