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Urea price trends across China on October 21 Author/Source: Yuege Agri-Materials Network Date: 2019-10-21 Clicks: 30 Currently, demand in China is weak. Although environmental regulations limiting production have reduced urea output, they have also constrained the demand from downstream factories. Sheet manufacturing plants and compound fertilizer producers are operating at low levels, resulting in low demand for urea. There are only occasional orders from the agricultural sector, and domestic trade provides limited support for the market. Currently, the urea market is characterized by weak supply and demand as well as limited driving forces. Following the recent tenders issued in India, the market response has been muted, with little support in terms of prices, making it difficult to reverse the downward trend in futures prices. The domestic urea market is expected to remain weak in the short term; attention will mainly be focused on the transaction situation of Chinese-supplied goods in India. The main ex-factory price of urea in Shandong is 1,730–1,750 yuan; compound fertilizer manufacturers in Linyi pay 1,730–1,750 yuan for urea. In Hebei, the main ex-factory price of urea is 1,740–1,790 yuan, while in Henan it is 1,690–1,760 yuan. In Anhui, the main ex-factory price of urea is 1,760–1,780 yuan. The mainstream ex-factory price of urea in Jiangsu is 1,820 yuan; in Hubei, it is 1,780–1,800 yuan. In Liaoning, the mainstream ex-factory price ranges from 1,710 to 1,760 yuan, while in Heilongjiang it is 1,720 yuan. In Shaanxi, the mainstream ex-factory price for urea is 1,706 yuan, with some large manufacturers offering prices as low as around 1,610 yuan for their products sold outside the region. In Sichuan, the mainstream ex-factory price of urea is 1,750–1,850 yuan, and in Xinjiang it is 1,400–1,450 yuan. Some enterprises have resumed urea production. In summary, the urea market will remain uncertain in the short term, with prices fluctuating slightly downward; there is little chance of a recovery in urea prices within October. After November, the situation will depend on factors such as environmental regulations, natural gas availability, and market demand. The winter storage market for compound fertilizers will not fully come online until the end of October and early November, and pricing for winter storage is likely to remain under pressure.