Urea price trends across China on October 12

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Urea price trends across China on October 12 Author/Source: Date: 2019-10-12 Clicks: 5 The domestic urea market is operating at a stable but weak level; sales at lower prices have increased in key regions, and some companies have received export orders. However, at present, the demand in the domestic market remains weak; agricultural demand is limited, with only occasional purchases taking place, and it’s not possible to achieve significant volumes. In the industrial sector, some factories have increased their operating capacity, but rubber sheet manufacturers and compound fertilizer producers continue to operate on a demand-driven basis. There are few positive factors either domestically or internationally, and the market situation remains uncertain, leading to a cautious attitude among downstream users. It is expected that the domestic urea market will remain stable in the short term, with only slight price fluctuations in some areas. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,750–1,850 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 1,770–1,780 yuan per ton; these prices remain stable for now. The urea production facilities of Shandong Jinmei Mingshui Chemical Group Co., Ltd. are operating normally, with an annual production capacity of 450,000 tons, and the systems are 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 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. 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%. The spot price for small-particle urea is 1,750 yuan per ton; the quote remains stable for now, 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 is 1,730–1,790 yuan per ton, with prices remaining stable for now. In Henan, the mainstream ex-factory price for small particles is 1,760–1,800 yuan per ton, also stable at present. In Anhui, the mainstream ex-factory price for small particles is around 1,760–1,850 yuan per ton, with no changes observed. In Jiangsu, the mainstream prices for small and medium-sized particles are around 1,830–1,880 yuan per ton, stable as well. In Shanxi, the transportation cost for large and small particles by road is around 1,660–1,680 yuan per ton, with prices remaining stable. In Inner Mongolia, the mainstream transaction price for small and medium-sized particles is around 1,520–1,600 yuan per ton, stable again. In Hubei, the mainstream price for small particles is 1,800–1,840 yuan per ton, stable. In Shaanxi, the local sales price for small and medium-sized particles is around 1,700 yuan per ton, while the price for shipments to other areas is around 1,630 yuan per ton, both stable. In Guangxi, the mainstream wholesale price for small and medium-sized particles is around 1,900 yuan per ton, stable. In Sichuan, the ex-factory price for such particles is around 1,800–1,880 yuan per ton, stable. In Guangdong, the mainstream wholesale price for small particles is 1,920–1,940 yuan per ton, stable. In Xinjiang, the ex-factory transaction price is around 1,420–1,450 yuan per ton, stable. In Jilin, the price of small urea particles is around 1,790–1,820 yuan per ton, stable. In Heilongjiang, the transaction price for small urea particles produced by local manufacturers is around 1,720 yuan per ton, stable. In Liaoning, the transportation cost for small urea particles by road is 1,710–1,841 yuan per ton; some companies are willing to reduce the price by 30 yuan per ton. Factories in Shandong and Hebei have orders ready to be shipped, with prices remaining stable despite weak market conditions. The production of compound fertilizers is nearing completion, resulting in little support for prices. In markets such as Hunan and Hubei, Jiangsu and Anhui, the price drops narrowed as prices in Shanxi and Inner Mongolia became clearer, and spot sales were fairly satisfactory. Market prices in Guangdong and Guangxi remain weak overall. With the gradual commissioning of large-scale compound fertilizer factories in the Northeast market, the market atmosphere has become more active, and there is a greater willingness to inquire about prices. However, it remains a region with low prices, and it is difficult to obtain supply at comparable prices from outside sources. In the short term, prices are likely to remain in a range with weak trends. The impact of the recent outcomes of Sino-US trade negotiations and exchange rate fluctuations on the price of Indian and Pakistani goods when converted into RMB upon arrival in China requires close attention.