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Urea price trends across China on November 21 Author/Source: Yuege Agri Supplies Network Date: 2019-11-21 Clicks: 37 The domestic urea market is operating in a stable but weak manner; trading activity is moderate, and manufacturers are slow to accept new orders. Due to recent tenders from India and weak demand in the market, it is difficult for urea prices to rise in various regions. Currently, overall domestic demand remains weak. Demand from downstream plywood mills is relatively stable, and production has not been affected by environmental regulations. In some regions, orders received by downstream compound fertilizer plants have seen a slight increase; however, large-scale procurement activities by these plants have yet to commence. Agricultural demand also remains sluggish. Traders are uncertain about future market trends and are largely adopting a cautious, wait-and-see attitude. 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. The current factory price for Anhui Hong Sifang small-grain urea is 1,720 yuan per ton; prices are negotiable on a case-by-case basis. The plant is operating normally, with a daily production of 1,000 tons and a small amount of inventory. A portion of the supply is used for internal purposes; export volumes are limited, with only a small amount going to nearby areas. Trading activity remains moderate. The urea production plant in Anyang, Henan is currently shut down for maintenance; it is planned to resume operations at the end of the month, with virtually no inventory available. The market is trading in a sideways range, with steady shipment volumes from surrounding companies. The mainstream export price for small particle products from enterprises within the province is 1,600–1,630 yuan per ton. In Shandong region, the ex-factory price for small and medium-sized particles is 1,650–1,720 yuan per ton; the prevailing transaction price is around 1,640–1,650 yuan per ton. In Linyi market, the transaction price is approximately 1,690–1,700 yuan per ton, while in Heze market it’s around 1,680–1,690 yuan per ton. Prices remain stable for now. In Hebei region, the ex-factory price for small particles is 1,630–1,700 yuan per ton, with the prevailing transaction price at around 1,620–1,640 yuan per ton; prices remain stable. In Henan region, the ex-factory price for small particles is 1,660–1,700 yuan per ton, with prices remaining stable. In Anhui region, the prevailing ex-factory price for small particles is around 1,700–1,750 yuan per ton, with prices remaining stable. In Jiangsu region, the prevailing price for small and medium-sized particles is 1,700–1,720 yuan per ton, while the actual transaction price is around 1,660–1,700 yuan per ton; some companies have reduced their prices by 20–30 yuan. In Shanxi region, the transportation cost for small and medium-sized particles is around 1,510–1,570 yuan per ton, while for larger particles it’s 1,560–1,580 yuan per ton; prices remain stable. In Inner Mongolia region, the prevailing transaction price for small and medium-sized particles is around 1,400–1,490 yuan per ton, with prices remaining stable. In Hubei region, the prevailing price for small particles is 1,680–1,700 yuan per ton, with prices remaining stable. 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 1,540 yuan per ton; prices remain stable. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,780–1,790 yuan per ton, with prices remaining stable. In Sichuan region, the ex-factory price for small and medium-sized particles is 1,600–1,780 yuan per ton, with prices remaining stable. In Guangdong region, the prevailing 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 and transaction prices are around 1,360–1,450 yuan per ton, with prices remaining stable. In Jilin region, the price for small urea particles is around 1,790–1,820 yuan per ton, with prices remaining stable. In Heilongjiang region, the transaction price for small urea particles produced by local manufacturers is 1,720 yuan per ton, with prices remaining stable. In Liaoning region, the transportation cost for small urea particles is 1,620–1,720 yuan per ton, and the actual transaction price can be negotiated; prices remain stable. Due to tight domestic natural gas supply, today’s prices for low-end urea products are favorable. In Shanxi and Shaanxi, the low-end prices have been increased by 20 yuan per ton, while Inner Mongolia imposes limits on the amount of orders that can be accepted. On the demand side, the operating rates of glue board factories in some areas have declined due to environmental regulations restricting production. At present, the social inventory in the mainstream market has been reduced to relatively low levels. Downstream demand remains intact, and changes in production levels among upstream manufacturers, particularly those involved in the gas industry, will have a significant impact on the domestic market; therefore, close monitoring is necessary. Internationally, there is a lot of information available in the market regarding printing specifications; as for the final bidding details, we still need to wait for official announcements from India.