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Urea price trends across China on October 17 Author/Source: Yuege Agri-Materials Network Date: 2019-10-17 Clicks: 25 The domestic urea market is largely in a weak state, with low levels of trading activity. At present, weak domestic demand persists, and agricultural demand remains limited in volume; in the industrial sector, plywood factories and compound fertilizer plants continue to operate on a demand-driven basis. For urea tenders in India, the lowest price is 270.27 CFR dollars per ton on the east coast, and 269.89 CFR dollars per ton on the west coast; this translates to an export price for urea from Inner Mongolia of 1510–1530 yuan per ton. The export price of urea from Hebei is around 1,670–1,680 yuan per ton, while the export price in Shandong is around 1,635–1,655 yuan per ton. There is still a certain gap between the current bidding prices and domestic prices; it is more likely that supplies from Inner Mongolia and Shanxi will be used to fulfill export orders. It is expected that the domestic urea market will remain cautious in the short term, with slight price fluctuations. The urea production equipment at Shandong Jinmei Mingshui Chemical Group Co., Ltd. is operating normally, with an annual production capacity of 450,000 tons; the system is 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 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-particle urea: 1,800 yuan per ton; the price remains stable for now ； Large-grain urea: 1,920 yuan per ton; the price remains stable for now ； Urea powder: 1,780 yuan per ton. The quoted price remains stable; 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 1,760 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 market in North China remains weak, with the operating rate of compound fertilizer plants dropping below 20%. Prices in Linyi have fallen by 10 yuan per ton compared to yesterday, and in Hebei, air quality warnings have affected the operating rates of plate manufacturing plants. There is a large influx of goods from MERCOSUR; inventory has accumulated in the main distribution centers, and the price system is chaotic. Agriculture is in its traditional off-season, with no support from domestic demand. Factories in Shanxi, Inner Mongolia, and Jiangsu have begun to reduce prices significantly to accept orders for delivery to ports; those that can use road transport to get goods to ports can further increase the volume of orders they accept. It is estimated that the volume of Chinese-supplied goods for this printing order will be around 300,000 tons; approximately 70% of this amount has already been purchased. Additional purchases will have limited impact on supporting the domestic market, and there are currently no positive factors in the domestic market. It is expected that prices will remain at their current low levels in the short term.