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Urea price trends across China on November 7 Author/Source: Yuege Agri-Materials Network Date: 2019-11-07 Clicks: 236 Prices in China’s urea market remain stable overall, with slight increases in some areas. After certain companies reduced their prices, there was an increase in new orders, thereby providing support for the bottom prices. On the demand side, some downstream sheet manufacturing enterprises in certain regions have resumed operations, leading to a slight improvement in purchasing activity; however, overall demand remains weak. Agricultural demand is low due to the off-season, so agricultural supply companies are cautious with their purchases. The overall operating rate of compound fertilizer manufacturers is less than 40%, with purchases being made based on actual needs. On the supply side, recent plant maintenance and a decline in operating rates have led to a slight reduction in overall supply. It is expected that the domestic urea market will remain cautious in the short term, with slight price fluctuations in some areas. In Shandong, the ex-factory price for small and medium-sized particles is 1,650–1,760 yuan per ton; the typical transaction price ranges from 1,640–1,676 yuan per ton. In Linyi, the transaction price is around 1,700 yuan per ton, while in Heze it’s around 1,660 yuan per ton. Some companies have raised their prices by 10 yuan per ton. In Hebei, the ex-factory price for small particles is 1,660–1,700 yuan per ton, with the typical transaction price staying around 1,650 yuan per ton. In Henan, the ex-factory price for small particles is 1,640–1,700 yuan per ton, with prices remaining stable. In Anhui, the typical ex-factory price for small particles is 1,700–1,750 yuan per ton; some companies have increased their prices by 10 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, and prices remain stable. In Shanxi, the transportation cost for small and medium-sized particles is around 1,520–1,560 yuan per ton, while that for larger particles is around 1,580 yuan per ton, with prices remaining stable. In Inner Mongolia, the typical transaction price for small and medium-sized particles is around 1,460–1,510 yuan per ton, with prices stable. 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 shipments to other areas 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 prices stable. In Xinjiang, the transaction price is 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 1,650–1,750 yuan per ton, with prices negotiable, and overall prices remain stable. The market for urea is showing signs of recovery. In Shandong, supply has decreased due to factory shutdowns for maintenance. Some compound fertilizer factories in North and East China plan to resume operations in mid-month and start stocking up in small quantities. Some factories in Hebei have significantly reduced their prices to target the sea freight market, and sales are fairly good; for example, the price after applying discounts is 10 dollars per ton lower than the original price, but it remains roughly on par. Social inventory in the Southern Market has been significantly reduced compared to late October, while winter stockpiling in the Northeast region has shown increased activity compared to previous periods. In regions with lower prices such as Sichuan, prices have seen a slight increase, but major production areas like Inner Mongolia, Shanxi, Shaanxi, and Henan still face pressure. It is expected that prices will remain stable and range-bound in the short term; whether domestic demand can be released rapidly will still be the decisive factor in price trends in the short term.