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Urea price trends across China on October 23 Author/Source: Yuege Agri-Materials Network Date: 2019-10-23 Clicks: 11 The domestic urea market continued to show a downward trend; trading activity was weak. Due to the tendency to buy when prices rise and avoid buying when they fall, downstream buyers were cautious in their purchases, and manufacturers faced difficulties in securing new orders. Currently, domestic demand is weak; downstream sheet 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. It is expected that as some manufacturers reduce prices to the level of printing costs, prices in the market may remain stable for the time being, while high-end prices will gradually decline. 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-particle urea costs 1,820 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. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,730–1,780 yuan per ton, with the typical transaction price ranging from 1,630–1,690 yuan per ton. In the Linyi market, the transaction price is around 1,710–1,720 yuan per ton, while in the Jizhou market it’s approximately 1,670–1,680 yuan per ton. Some companies have reduced their prices by 10–20 yuan per ton. In the 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; prices remain stable for now. In the Henan region, the ex-factory price for small particles is 1,690–1,700 yuan per ton, with some companies reducing their prices by 10 yuan per ton. In the Anhui region, the typical ex-factory price for small particles is 1,720–1,780 yuan per ton, with some companies cutting prices by 20 yuan per ton. In the Jiangsu region, the typical price for small and medium-sized particles is 1,760–1,820 yuan per ton, with some companies reducing prices by 20 yuan per ton. In the Shanxi region, the transport cost for both large and small particles is around 1,590–1,640 yuan per ton; prices remain stable. In the Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,500–1,580 yuan per ton; prices remain stable as well. In the Hubei region, the typical price for small particles is 1,730–1,760 yuan per ton, with prices trending downward. In the 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 1,600 yuan per ton; some companies have reduced their prices by 20 yuan. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,870–1,880 yuan per ton; prices remain stable. In the Sichuan region, the ex-factory price for small and medium-sized particles is 1,720–1,800 yuan per ton; prices remain stable. In the Guangdong region, the typical wholesale price for small particles is 1,860–1,880 yuan per ton; prices remain stable. In the Xinjiang region, the transaction price is around 1,420–1,450 yuan per ton; prices remain stable. In the Jilin region, the price for small urea particles is around 1,790–1,820 yuan per ton; prices remain stable. In the Heilongjiang region, the transaction price for small urea particles produced by local manufacturers is around 1,720 yuan per ton; prices remain stable. In the Liaoning region, the transport cost for small urea particles is 1,710–1,841 yuan per ton, with prices subject to negotiation; prices remain stable. Today, the domestic urea market remains weak, with a pessimistic atmosphere among industry players. Market activity is declining, and urea manufacturers continue to reduce prices to promote sales. In Henan, the price for low-quality urea has dropped to 1,600 yuan per ton. There are few positive factors in the market; it has not yet reached its bottom, and there is still some room for further decline. Today, the price for medium-sized particles from Hualu Hengsheng is 1760 (stable), while large-sized particles cost 1810 (a decrease of 30). In Hebei’s Dongguang region, small-sized particles are priced at 1710 (stable); in Henan’s Xinxianxin company, the price is 1690 (a decrease of 10). Shanxi’s Fengxi company lists its products at 1600 (stable), while Jiangsu’s Hengsheng company charges 1760 (a decrease of 20). Anhui’s Haoyuan company offers prices ranging from 1750 to 1770 (stable). Inner Mongolia’s Boda company has a price of 1510 (a decrease of 40). Shaanxi’s Shanhua company charges 1650 for products sold locally, and 1600 for those sold externally (a decrease of 20). Xinjiang’s Yankuang company lists its products at 1400 (stable). Urea prices across the country have seen a significant drop, with the ex-plant prices at some factories in Shandong, Henan, Jiangsu and other regions falling by more than 30 yuan per ton. The low-end ex-factory price in Shandong is approaching 1,650 yuan per ton. Affected by the air pollution warning, industrial demand in Shandong and Hebei has dropped significantly, but current prices are gradually approaching the full cost for factories. In a situation of supply exceeding demand, the market is cautiously bearish, while closely monitoring the emergence of demand from downstream sectors in search of opportunities for the market to reach bottom levels.