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Urea price trends across China on October 16 Author/Source: Yuege Agri-Materials Network Date: 2019-10-16 Clicks: 9 The domestic urea market is operating in a stable manner. On the supply side, the current daily production of urea across the country is around 140,000 tons, with an operating rate of approximately 60.72%, which represents a slight decline compared to last week. On the demand side, domestic demand is weak, and agricultural demand cannot reach significant levels. In the industrial sector, plywood factories and compound fertilizer plants continue to operate on a demand-driven basis. For the urea tender in India, bids were received from 15 suppliers; the lowest price on the east coast was 270.27 CFR dollars per ton, while on the west coast it was 269.89 CFR dollars per ton. There is still a certain gap compared to domestic prices, so deals are more likely to be struck in the Inner Mongolia region. 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. 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 1,840 yuan per ton; the price remains stable for now, and it is mainly supplied to local and surrounding agricultural buyers. The enthusiasm for purchasing 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 purchasing 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 remains stable for now, with the actual transaction price determined through negotiation. The enthusiasm for purchasing 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 1,740–1,800 yuan per ton; some companies have reduced their prices by 10 yuan per ton. In Anhui region, the mainstream ex-factory price of small particles is around 1,760–1,800 yuan per ton, with prices stable as well. In Jiangsu region, the mainstream price for small and medium-sized particles is around 1,830–1,850 yuan per ton, with prices stable. In Shanxi region, the transportation cost for large and small particles is around 1,660–1,680 yuan per ton, with prices stable. In Inner Mongolia region, the mainstream transaction price for small and medium-sized particles is around 1,520–1,600 yuan per ton, with prices stable. In Hubei region, the mainstream price of small particles is 1,800–1,840 yuan per ton, with prices 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 external shipments is around 1,630 yuan per ton, with prices stable. In Guangxi region, the mainstream wholesale price for small and medium-sized particles is around 1,890 yuan per ton, with a decrease of 10 yuan per ton. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,800–1,880 yuan per ton, with prices stable. In Guangdong region, the mainstream wholesale price of small particles is 1,900–1,920 yuan per ton, with a decrease of 10 yuan per ton. In Xinjiang region, the ex-factory transaction price is around 1,420–1,450 yuan per ton, with prices stable. In Jilin region, the price of small urea particles produced there is around 1,790–1,820 yuan per ton, with prices stable. In Heilongjiang region, the transaction price for small urea particles produced locally is around 1,720 yuan per ton, with prices stable. In Liaoning region, the transportation cost for small urea particles is around 1,710–1,841 yuan per ton, with prices negotiable, and overall prices remain stable. The price including labeling costs is lower, and when converted to the domestic Fob price, it amounts to 1,800 yuan per ton. At this price, factory prices in Hebei and Inner Mongolia are 30–50 yuan/ton lower, while prices in Shanxi are 50–60 yuan/ton lower; however, factories and exporters have not yet reached large-scale contracts. Today, market prices dropped in response, transaction volume remained low, and a pessimistic atmosphere dominated the market. On the demand side, agriculture is in its traditional off-season, with the operating rate of compound fertilizers continuing to decline. The factories producing rubber sheets and melamine are operating normally, but they cannot provide support for the market. The domestic market will still face downward pressure in the short term.