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Urea price trends across China on September 23 Author/Source: Yuege Agri-Materials Website Date: 2019-09-23 Clicks: 9 Domestic demand remains weak at present; downstream buyers are cautious and inclined to wait and see. Most manufacturers are under sales pressure; as the National Day approaches, some companies are collecting orders in advance for the holiday period, resulting in a slight shift downward in the focus of transactions. It is expected that the domestic urea market will experience only slight fluctuations in the short term; going forward, attention will be focused on environmental regulations affecting production levels as well as the volume of transactions. Some factories have agreed to discharge goods at port at prices lower than those in the domestic market. The operating rates of downstream industries are at moderate to low levels; the operation status of rubber sheet factories is fairly good, while that of compound fertilizer plants is low. Preparations for fertilizers in the agricultural sector have begun on a limited scale. Due to the suspension of shipments of goods from Xinjiang, prices in the southwest region remain relatively stable, while prices in Guangdong and Guangxi, as well as in Hunan and Hubei, have declined as a result of the impact of goods from Shanxi. Urea prices are expected to remain weak in the short term. Next week, factories will start facing pressure to process orders during the National Day holiday, and it is expected that there will be another round of price cuts to attract customers in the second half of the week. The mainstream pricing for small to medium-sized particles in Shandong is 1780–1860; in Jiangsu, it is 1850–1880. In Anhui, the mainstream factory price ranges from 1840–1860, while in Henan, the local factory prices are 1770–1840. In Hebei, the mainstream pricing for small to medium-sized particles is 1780–1790. In terms of raw materials, there is little enthusiasm for replenishing stockpiles of lump coal; although demand for coal for domestic use remains decent, this does not have a significant positive effect on the lump coal market. The market situation for anthracite lump coal within the province has not improved, and coal companies continue to face sales pressures. As a result, prices remain weak and stable, providing little support for urea prices. On the demand side, as farming activities resume from the south to the north, downstream industries are busy with the autumn harvest, leading to low enthusiasm among customers to place orders. In autumn, most fertilizers used are compound fertilizers, resulting in limited demand for urea. Fertilizer plants rely on only a limited amount of inventory to sustain operations, and new orders are not coming in easily. To reduce inventory pressure, some companies have reduced the operating capacity of their facilities. Rubber sheet manufacturers operate at reduced levels due to strict environmental regulations, producing only as much as is needed, so there won’t be a significant increase in demand. Overall, domestic demand is weak, and with the National Day holiday approaching, some companies are willing to lower prices to attract customers, leading to slight price adjustments. However, factors such as production restrictions and uncertainties related to agricultural demand still exist, resulting in mixed attitudes in the market, with prices adjusting according to market conditions.