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Urea price trends across China on September 24 Author/Source: Date: 2019-09-24 Clicks: 1 The domestic urea market is operating at a stable level with slight fluctuations. Recently, urea manufacturers in certain areas have reduced production to varying degrees due to policy impacts; meanwhile, as the National Day approaches, some companies need to receive orders for the holiday in advance. However, domestic demand remains weak; downstream buyers are cautious, with a strong tendency to wait and see, resulting in insufficient momentum for price increases in order volumes. 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. In Shandong 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 1,820–1,830 yuan per ton, while in the Heze market it is approximately 1,800–1,810 yuan per ton. Prices remain stable for now. In Hebei region, the ex-factory price for small particles is also 1,800–1,850 yuan per ton, with prices staying stable. In Henan region, the typical ex-factory price for small particles is 1,770–1,810 yuan per ton; some companies have raised their prices by 10 yuan per ton. In Anhui region, the typical ex-factory price for small particles is around 1,840–1,860 yuan per ton, with prices remaining stable. In Jiangsu region, the typical price for small and medium-sized particles is 1,850–1,880 yuan per ton, again with prices stable. In Shanxi region, the price for large and small particles is around 1,670–1,680 yuan per ton, showing a downward trend. In Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,560–1,600 yuan per ton, with prices stable. In Hubei region, the typical price for small particles is 1,800–1,840 yuan per ton, stable as well. In Shaanxi region, the local sales price for small and medium-sized particles is 1,740 yuan per ton, while the price for shipments to other areas is 1,670 yuan per ton, with prices stable. In Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,920 yuan per ton, with a decrease of about 10 yuan per ton. In Sichuan region, the ex-factory price for small and medium-sized particles is 1,780–1,860 yuan per ton, stable. In Guangdong region, the typical wholesale price for small particles is 1,950–1,970 yuan per ton, with a decrease of about 20 yuan per ton. In Xinjiang region, the ex-factory and transaction prices are around 1,400–1,480 yuan per ton, stable. In Jilin region, the price for small urea particles is 1,800–1,820 yuan per ton, stable. In Heilongjiang region, the transaction price for small urea particles produced by local manufacturers is 1,720 yuan per ton, stable. In Liaoning region, the price for small urea particles transported by truck is 1,790–1,840 yuan per ton, with prices negotiable, still stable. In terms of futures, the closing price of the main urea contract (UR001) on the 20th was 1,760.0000 yuan, down by 25.0000 yuan from the previous trading day, representing a decline of (-1.40%)%. The settlement price was 1,762.0000 yuan. The open interest of the main contract increased by 2,976 contracts, with a total of 86,986.0000 contracts traded during the day. Today, the opening price of the main urea contract (UR001) was 1,764 yuan. Demand in the domestic market is limited; compound fertilizer manufacturers adjust their production according to demand. As the farming season is still ahead, demand remains weak. Companies mainly focus on fulfilling existing orders, with little new business coming in – prices generally follow market trends. However, due to yellow warning signals in Dezhou, Shandong, local companies are optimistic and may raise prices slightly. It is expected that urea prices will remain stable in the near term, with only slight fluctuations. Special attention should be paid to bidding developments and domestic environmental regulations.