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Urea price trends across China on December 2 Author/Source: Yuege Agri-Materials Network Date: 2019-12-02 Clicks: 39 Urea market prices continue to rise; due to an increase in upcoming shipments, factories are limiting the amount of urea they accept for purchase. Industrial activity in the areas surrounding Beijing has declined due to environmental regulations, but traders are increasing their purchases, resulting in a positive attitude in the market. Due to significant variations in inventory costs, prices at the downstream level are currently a bit chaotic, and the rate of price increases is somewhat out of sync with factory prices. It is expected that a period of stabilization will occur in the short term, but the overall situation remains strong. Next week, as domestic demand begins to materialize, prices are expected to remain strong. The main ex-factory price of urea in Shandong is 1670–1710 yuan. In Linyi, compound fertilizer manufacturers pay 1730 yuan per ton of urea. In Hebei, the main ex-factory price of urea is 1670–1700 yuan, while in Henan it is 1680–1690 yuan. The reference price for lower-quality urea is 1640–1650 yuan. In Shanxi, the main ex-factory price of urea is 1580–1600 yuan, with large-grained urea costing 1580–1595 yuan. The mainstream ex-factory price of urea in Anhui is 1,720–1,760 yuan; in Jiangsu it is 1,770 yuan. In Hubei, the mainstream ex-factory price is around 1,720 yuan, while in Inner Mongolia it ranges from 1,470 to 1,550 yuan. In Liaoning, the mainstream ex-factory price is 1,620–1,670 yuan. In Heilongjiang, the price is 1,720 yuan. In Shaanxi, the mainstream ex-factory price of urea has risen to 1,676 yuan. In Sichuan, it is 1,750–1,830 yuan, and in Xinjiang it ranges from 1,310 to 1,450 yuan. The trading atmosphere in the market has improved. Driven by the tendency to buy when prices rise and avoid buying when they fall, downstream buyers are more proactive in their purchases. There is active trading of fertilizers for use by farmers at the grassroots level, while industrial users generally place orders based on their actual needs. The flow of goods in the market has increased, and some companies also have export orders, providing a decent level of support through advance payments. On the supply side, the operating rate of domestic urea manufacturers is currently around 59%, so there is little pressure on market supply. It is expected that the domestic urea market will remain stable with only slight price increases in the short term; going forward, attention will be focused on the purchasing behavior of compound fertilizer manufacturers and the progress of fertilizer preparation for agricultural use.