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Domestic urea price trends on November 5th Author/Source: Yuege Agri-Materials Network Date: 2019-11-05 Clicks: 272 The domestic urea market continued to operate in a weak state, with moderate levels of trading activity. As prices dropped further, there was a slight increase in sales at lower price points, but orders at relatively high prices remained limited. Urea manufacturers are facing weak demand, resulting in moderate sales volumes. In some areas, new rounds of environmental restrictions on production have been implemented, leading to a halt in purchases by downstream industries. Dealers are highly cautious, and the overall attitude remains one of wait-and-see; it is expected that the domestic urea market will experience only slight fluctuations in the short term. Hualu Hengsheng’s medium-sized particles are priced at 1660 (stable); Hebei Dongguang’s small-sized particles are priced at 1670 (a 10% decrease); Henan Zhongyuan Dahua’s particles are priced at 1680 (stable), while Shanxi Fengxi’s particles are priced at 1560 (a 20% decrease). Jiangsu Linggu’s particles are priced at 1730 (stable), Anhui Haoyuan’s particles are priced between 1680 and 1720 (a 20% decrease). Inner Mongolia Boda’s particles are priced at 1470 (stable), Shaanxi Shanhua’s particles are priced between 1540 and 1650 (stable), and Xinjiang Yankuang’s particles are priced at 1400 (stable). In Shandong, the ex-factory price for small and medium-sized particles is 1,690–1,760 yuan per ton; the typical transaction price ranges from 1,650–1,670 yuan per ton. In Linyi, the transaction price is around 1,650–1,660 yuan per ton, while in Heze it’s around 1,660–1,670 yuan per ton. Prices remain stable for now. In Hebei, the ex-factory price for small particles is 1,670–1,750 yuan per ton, with the typical transaction price being around 1,670 yuan per ton. Since the weekend, some companies have reduced their prices by 10–20 yuan per ton. In Henan, the typical ex-factory price for small particles is 1,640–1,700 yuan per ton; since the weekend, some companies have lowered their prices by 20 yuan per ton. In Anhui, the typical ex-factory price for small particles is 1,700–1,750 yuan per ton; again, some companies have reduced their prices by 20 yuan per ton. In Jiangsu, the typical price for small and medium-sized particles is 1,690–1,730 yuan per ton, with the actual transaction price ranging from 1,660–1,730 yuan per ton. A few companies have reduced their prices by 30 yuan per ton. In Shanxi, the transportation cost for large and small particles is around 1,560–1,600 yuan per ton, with prices remaining stable. In Inner Mongolia, the typical transaction price for small and medium-sized particles is around 1,470–1,510 yuan per ton, with prices stable as well. In Hubei, the typical price for small particles is 1,700–1,750 yuan per ton, with prices stable. In Shaanxi, the local sales price for small and medium-sized particles is around 1,650 yuan per ton, while the price for export is around 1,540 yuan per ton, with prices stable. In Guangxi, the typical wholesale price for small and medium-sized particles is around 1,770–1,800 yuan per ton, with prices stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,670–1,800 yuan per ton, with prices stable. In Guangdong, the typical wholesale price for small particles is 1,810–1,830 yuan per ton, with a increase of 10 yuan per ton. In Xinjiang, the ex-factory and transaction prices are around 1,380–1,450 yuan per ton, with prices stable. In Jilin, the price for small urea particles is around 1,790–1,820 yuan per ton, with prices stable. In Heilongjiang, the transaction price for small urea particles produced by local manufacturers is around 1,720 yuan per ton, with prices stable. In Liaoning, the transportation cost for small urea particles is around 1,650–1,750 yuan per ton, with prices negotiable and generally stable. In Shandong, some prices have dropped by 10–40 yuan per ton; in Hebei, by 10–50 yuan per ton; in Henan, by 10–20 yuan per ton. In Jiangsu, a few companies have reduced their prices by 30 yuan per ton. In Shanxi, some local sales prices have dropped by 30 yuan per ton, while in Inner Mongolia prices have dropped by 30–60 yuan per ton. During the current lull in China’s agricultural sector, compound fertilizer manufacturers purchase materials as needed. Due to the environmental protection orange warning, downstream industries such as rubber sheet manufacturers are operating at reduced capacity, resulting in overall weak demand. Traders in this sector are cautious about entering the market, leading to a sluggish trading atmosphere. The price of urea remains weak, and it is expected that this trend will continue in the near future with prices continuing to fall. However, some companies plan to reduce production or shut down due to gas supply restrictions, while factors such as limited agricultural stockpiles and cost support may limit further price drops. In the long term, in November, attention should be paid to the impact of environmental protection measures and gas supply restrictions on the operations of urea-related industries.