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Domestic urea price trends on September 25 Author/Source: Date: 2019-09-25 Clicks: 36 The domestic urea market is operating at a steady level, with a moderate trading atmosphere; manufacturers are seeing average demand for new orders, and prices vary slightly in different regions. On the supply side, affected by factors such as environmental regulations limiting production, some urea factories in Shandong, Shanxi, and Hebei will begin to reduce their output starting from today. The operating rate of urea factories in China is showing a clear downward trend, and it is expected that this rate will continue to decline in the future. On the demand side, the overall domestic demand situation is poor; agricultural demand remains stagnant, and downstream industries are expected to see a decline due to environmental inspections. At present, supply depends on demand. At the same time, as National Day approaches, some companies with insufficient advance sales need to collect orders for the holiday in advance. Overall, driven by factors such as factory production cuts and restrictions, the domestic urea market is expected to stop falling and stabilize. Some factories may tentatively raise their prices, but given the modest level of domestic demand, there is still limited momentum for an increase in urea prices, so a sustained rise in prices is unlikely. Next, the focus will be on environmental regulations affecting production volume and the number of orders for printing labels. The prevailing ex-plant prices for small-grain urea in the Shandong region remain stable: Yangmei Pingyuan offers 1,800 yuan per ton, with no changes in price; Ruixing Chemical offers 1,780 yuan per ton, also with stable prices; Mingshui Chemical offers 1,850 yuan per ton, again with stable prices. 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 urea prices are expected to remain stable at low levels in the coming period. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,790–1,850 yuan per ton. In the Linyi market, the transaction price is around 1,810–1,820 yuan per ton, while in the Heze market it is approximately 1,800–1,810 yuan per ton. Some companies offer prices 10 yuan per ton lower. 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 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 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 operational rate of around 50%. Small-particle urea costs 1,780 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. In Hebei province, the ex-factory price of small particles remains stable at 1,790–1,840 yuan per ton. In Henan province, the mainstream ex-factory price for small particles is 1,800–1,810 yuan per ton; some companies have raised their prices by 30 yuan per ton. In Anhui province, the mainstream ex-factory price for small particles is around 1,800–1,860 yuan per ton, with some companies lowering their prices by 30 yuan per ton. In Jiangsu province, the mainstream price for small and medium-sized particles is around 1,850–1,880 yuan per ton, with prices remaining stable. In Shanxi province, the transportation cost for large and small particles is around 1,690–1,700 yuan per ton; some companies have increased their prices by 10–20 yuan per ton. In Inner Mongolia, the mainstream transaction price for small and medium-sized particles is around 1,530–1,600 yuan per ton, with prices remaining stable. In Hubei province, the mainstream price for small particles is 1,800–1,840 yuan per ton, with prices remaining stable. In Shaanxi province, the local sales price for small and medium-sized particles is around 1,740 yuan per ton, while the price for shipments to other areas is around 1,670 yuan per ton; some companies have lowered their prices by 20 yuan per ton. In Guangxi province, the mainstream wholesale price for small and medium-sized particles is around 1,910–1,920 yuan per ton, with a decrease of around 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 mainstream wholesale price for small particles is 1,940–1,960 yuan per ton, with a decrease of around 10 yuan per ton. In Xinjiang province, the ex-factory transaction price is around 1,400–1,480 yuan per ton, with prices remaining stable. In Jilin province, the price of small urea particles is around 1,800–1,820 yuan per ton, with prices remaining stable. In Heilongjiang province, the transaction price for small urea particles produced by local manufacturers is around 1,720 yuan per ton, with prices remaining stable. In Liaoning province, the transportation cost for small urea particles is 1,790–1,840 yuan per ton, with prices negotiable; overall, prices remain stable. In terms of futures, the opening price of the main urea contract (UR001) on the 23rd was 1,764.0000 yuan, while the closing price was 1,763.0000 yuan, representing an increase of 1.0000 yuan compared to the previous trading day. The increase rate was 0.06%, and the settlement price was 1,762.0000 yuan. The open interest of the main contract increased by 3,198 contracts, with a total of 46,354.0000 contracts traded during the day. The opening price of the main urea contract (UR001) today was 1,764 yuan.