Urea price trends across China on November 20

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Urea price trends across China on November 20 Author/Source: Yuege Agri-Materials Web Date: 2019-11-20 Clicks: 36 The urea market remains affected by the low starting prices in India, leading to a cautiously bearish sentiment; currently, some supplies in China are being prepared for export. The quotes from major upstream manufacturers have been reduced by 20–40 yuan per ton; negotiations may be possible for transactions, but the overall trading situation remains unfavorable. Due to air quality conditions, the operating rates of sheet metal factories in some areas are set to decline. Affected by the natural gas supply, a factory in Inner Mongolia shut down today, and another factory will shut down on the 22nd; together, this results in a loss of 6,000 tons per day in production. In the short term, market prices still have room to fall, but demand in the market remains strong; therefore, the extent of this downward movement will not be significant. Currently, there is no positive support from either the domestic or international markets; in the short term, prices are expected to remain stable before experiencing downward fluctuations and adjustments. Today, the price for medium-sized particles from Hualu Hengsheng is 1640 (a decrease of 10), while large-sized particles cost 1740 (also a decrease of 10). In Hebei’s Dongguang region, small-sized particles are priced at 1620 (stable price); in Henan’s Jinkai area, the price is 1660 (a decrease of 10), and in Shanxi’s Lanhua region it is 1560 (a decrease of 10). Jiangsu Hengsheng’s price remains at 1730 (stable), Anhui Haoyuan’s price ranges from 1700 to 1720 (stable). Inner Mongolia Boda’s price is 1400 (a decrease of 40). In Shaanxi’s Shanhua region, the price is between 1540 and 1600 (stable), while Xinjiang Yankuang’s price is 1350 (stable). In Shandong region, the ex-factory price for small and medium-sized particles is 1,650–1,730 yuan per ton; the typical transaction price is around 1,640–1,650 yuan per ton. In Linyi market, the transaction price is approximately 1,700–1,710 yuan per ton, while in Heze market it’s around 1,680–1,690 yuan per ton. In Hebei region, the ex-factory price for small particles is 1,630–1,700 yuan per ton, with the typical transaction price being around 1,620–1,640 yuan per ton. In Henan region, the ex-factory price for small particles is 1,660–1,700 yuan per ton, with some manufacturers offering prices 10 yuan per ton lower. In Anhui region, the typical ex-factory price for small particles is around 1,700–1,750 yuan per ton. In Jiangsu region, the typical price for small and medium-sized particles is 1,730–1,750 yuan per ton, while the actual transaction price is around 1,660–1,730 yuan per ton. In Shanxi region, the transportation cost for small and medium-sized particles is around 1,510–1,570 yuan per ton, while that for large particles is around 1,560–1,580 yuan per ton. In Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,400–1,500 yuan per ton, with some companies offering prices 40 yuan per ton lower. In Hubei region, the typical price for small particles is 1,680–1,700 yuan per ton. In Shaanxi region, the local sales price for small and medium-sized particles is around 1,600 yuan per ton, while the price for shipments to other areas is around 1,540 yuan per ton. In Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,780–1,790 yuan per ton, with a decrease of 10 yuan per ton. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,600–1,780 yuan per ton. In Guangdong region, the typical wholesale price for small particles is 1,810–1,820 yuan per ton, with a decrease of 10 yuan per ton. In Xinjiang region, the ex-factory transaction price is around 1,360–1,450 yuan per ton. In Jilin region, the price for small urea particles is around 1,790–1,820 yuan per ton. In Heilongjiang region, the transaction price for small urea particles offered by manufacturers is around 1,720 yuan per ton. In Liaoning region, the transportation cost for small urea particles is around 1,620–1,720 yuan per ton, with prices subject to negotiation. The domestic urea market is operating in a stable but weak manner; the prices set in the latest bidding rounds are not high, which does not have a significant positive impact on domestic trade, and there has been no obvious reaction in the market after those bids. Currently, overall domestic demand is weak; the demand from plywood manufacturers downstream remains relatively stable, and production has not yet been affected by environmental regulations. In some areas, there has been a slight increase in orders from fertilizer manufacturers downstream, but large-scale purchases by these fertilizer manufacturers have not yet begun. Demand in the agricultural sector remains low, and intermediaries are not very enthusiastic about stocking up supplies. The market is expected to remain stable but weak in the short term, with manufacturers making flexible adjustments based on their production and sales conditions. Next, the focus will be on changes in the operating rate and downstream purchases of compound fertilizers.