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Urea price trends across China on October 22 Author/Source: Yuege Agri-Materials Web Date: 2019-10-22 Clicks: 37 The domestic urea market continued to show a downward trend; trading activity was low, and downstream buyers were cautious in their purchases. Currently, domestic demand is weak. Although environmental regulations on production limits have reduced urea output, they have also constrained the demand from downstream factories. Downstream panel manufacturers and compound fertilizer plants 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 to the market. On the export side, many orders were placed last week at low prices, but such low prices had limited supporting effect and were unable to reverse the downward price trend. 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. In Shandong region, the ex-factory price for small and medium-sized particles is 1,750–1,790 yuan per ton, with the typical transaction price ranging from 1,700–1,710 yuan per ton. In Linyi market, the transaction price is around 1,710–1,720 yuan per ton, while in Jizhou market it is approximately 1,700 yuan per ton, showing a downward trend in prices. In Hebei region, the ex-factory price for small particles is 1,720–1,780 yuan per ton, with the typical transaction price around 1,700–1,720 yuan per ton; some companies have reduced their prices by 10–20 yuan per ton. In Henan region, the ex-factory price for small particles is 1,700–1,750 yuan per ton, with some companies lowering their prices by 10–20 yuan per ton. In Anhui region, the typical ex-factory price for small particles is 1,720–1,780 yuan per ton, with prices remaining stable for now. In Jiangsu region, the typical price for small and medium-sized particles is 1,780–1,820 yuan per ton, also remaining stable. In Shanxi region, the transportation cost for both large and small particles is around 1,590–1,640 yuan per ton, with a downward trend in prices. In Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,500–1,580 yuan per ton, with prices stable. In Hubei region, the typical price for small particles is 1,730–1,760 yuan per ton, showing a downward trend in prices. In Shaanxi region, 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 1,620 yuan per ton; some companies have reduced their prices by 10 yuan per ton. In Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,870–1,880 yuan per ton, with a decrease of 10–20 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 remaining stable. In Guangdong region, the typical wholesale price for small particles is 1,860–1,880 yuan per ton, with a decrease of around 20 yuan per ton. In Xinjiang region, the ex-factory price is around 1,420–1,450 yuan per ton, with prices stable. In Jilin region, the price for small urea particles is around 1,790–1,820 yuan per ton, remaining stable. In Heilongjiang region, the price for small urea particles produced by local manufacturers is around 1,720 yuan per ton, also stable. In Liaoning region, the transportation cost for small urea particles is 1,710–1,841 yuan per ton, with prices negotiable and overall stable. In Henan, Xinchuanxin’s price has dropped by 80 yuan per ton, while in Henan, Shanxi, Anhui, Shandong, and Jiangsu, prices have dropped by 10–70 yuan per ton. In Chongqing, prices have dropped by 20 yuan per ton. In the domestic market, compound fertilizers are purchased as needed; rubber sheet factories are operating at low capacity levels. Industrial demand is moderate, while there is occasional purchasing in the agricultural sector. Overall demand remains weak, with few transactions taking place in most domestic markets. Companies are cautious and waiting to see how things develop. It is expected that urea prices in the domestic market will continue to decline in a volatile manner in the near future. Going forward, attention should be paid to the impact of policies such as environmental regulations and gas restrictions on factory operations. The price in Shanxi has dropped below 1,600 yuan per ton, while the actual transaction prices for low-end products in Shandong have fallen below 1,700 yuan per ton. Affected by the air pollution warning, the operation rates of plywood factories in Shandong and Hebei have declined, while the operation rate of compound fertilizers remains low. Domestic demand is weak; downstream industrial users purchase goods as they need them, and traders reduce their inventory levels. At present, shipments destined for ports represent the main source of support for upstream factories. However, due to limitations in port handling capacity, it is expected to be difficult to increase the volume of goods gathered at ports. Prices are expected to remain weak in the short term.