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Urea price trends across China on October 15 Author/Source: Date: 2019-10-15 Clicks: 3 The overall urea market in China remains stable, but prices have seen slight declines in some areas due to weak demand. At present, the demand in the domestic market remains weak; agricultural demand is limited, with only occasional purchases being made, and it’s not possible to achieve significant volumes. In the industrial sector, some factories have increased their production levels, 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 buyers. Bids opened in India today, and the prices and quantities will influence the trend of the domestic market going forward. It is expected that the domestic urea market will remain cautious in the short term, with only slight price fluctuations. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,750–1,840 yuan per ton; the typical transaction price is around 1,730–1,740 yuan per ton. In the Linyi market, the transaction price is approximately 1,780 yuan per ton, while in the Heze market it is around 1,760–1,770 yuan per ton. Some companies have reduced their prices by 10 yuan per ton. Shandong Jinmei Mingshui Chemical Group Co., Ltd. has its urea production equipment operating normally, with an annual production capacity of 450,000 tons, and the system is running at full capacity. Small-particle urea costs 1,840 yuan per ton; the price has seen a slight decrease of 10 yuan per ton. It is mainly supplied for use by agricultural clients in the local area and surrounding regions. 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, again with stable prices, and 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 operation rate of around 50%. The spot price for small-particle urea is 1,760 yuan per ton; the quote has seen a slight increase of 10 yuan per ton, 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 region is 1,750–1,790 yuan per ton, with prices remaining stable for now. The mainstream ex-factory price of small particles in Henan region is 1,760–1,800 yuan per ton, also stable at present. In Anhui region, the mainstream ex-factory price for small particles is around 1,760–1,800 yuan per ton; some companies have reduced their prices by 10–20 yuan per ton. In Jiangsu region, the mainstream price for small and medium-sized particles is around 1,830–1,880 yuan per ton, with prices stable. In Shanxi region, the transport cost for large and small particles is around 1,660–1,680 yuan per ton, again stable. In Inner Mongolia region, the mainstream transaction price for small and medium-sized particles is around 1,520–1,600 yuan per ton, stable as well. In Hubei region, the mainstream price for small particles is 1,800–1,840 yuan per ton, stable. In Shaanxi region, the local sales price for small and medium-sized particles is around 1,700 yuan per ton, while the price for exports is around 1,630 yuan per ton, both stable. In Guangxi region, the mainstream wholesale price for small and medium-sized particles is around 1,900 yuan per ton, stable. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,800–1,880 yuan per ton, stable. In Guangdong region, the mainstream wholesale price for small particles is 1,920–1,940 yuan per ton, stable. In Xinjiang region, the ex-factory transaction price is around 1,420–1,450 yuan per ton, stable. In Jilin region, the price of small urea particles is around 1,790–1,820 yuan per ton, stable. In Heilongjiang region, the transaction price for small urea particles produced by local manufacturers is around 1,720 yuan per ton, stable. In Liaoning region, the transport cost for small urea particles is 1,710–1,841 yuan per ton, with prices negotiable; prices remain stable. In Shandong region, prices fluctuate by 10–20 yuan per ton, while in Henan region they drop by 10 yuan per ton. In China, there is a cautious attitude towards composite fertilizers due to weak demand from farmers. Plywood factories are operating at low capacity, and as a result, middlemen are cautious about making purchases. New orders are limited compared to usual. Some companies are trying to fulfill previous orders in the short term, but recently some companies have been undergoing maintenance, which has led to higher prices and reluctance to sell. Additionally, winter storage activities have started in some regions, contributing to a cautious market attitude. People are waiting for the results of tenders in India. It is expected that urea prices will remain stable in the near term, with attention needed to be paid to tender developments and domestic environmental regulations.