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Urea price trends across China on December 5 Author/Source: Yuege Agri-Materials Website Date: 2019-12-05 Clicks: 9 The domestic urea market remains stable, with slight price increases in some areas. Recently, as the volume of deliveries increased, downstream manufacturers of compound fertilizers and panels have shown a slight reduction in their willingness to purchase urea at high prices. At present, they are mainly using up their existing inventory, placing small orders on a tentative basis, while agricultural demand is determined by market conditions. Meanwhile, some companies have export orders, and the advance orders received by manufacturers provide sufficient support; most manufacturers do not face any sales pressure at the moment. 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 agricultural fertilizer preparation. In Shandong, prices dropped by 10 yuan per ton in some areas; in Shanxi, prices increased by 20–30 yuan per ton for shipments outside the region, while in Inner Mongolia they rose by 10–20 yuan per ton in certain areas. In Hebei and Anhui, prices increased by 10 yuan per ton in some places, and in Sichuan as well, prices rose by 10 yuan per ton in certain areas. In Xinjiang, prices increased by 10–20 yuan per ton in some regions. At present, there are many maintenance activities and production restrictions in some domestic urea plants, resulting in a slightly tight supply situation. On the demand side, some compound fertilizer manufacturers are being somewhat more proactive in stockpiling supplies. There is also limited stockpiling of fertilizers for winter use in wheat cultivation. The trading atmosphere in certain markets is relatively favorable, and some companies have a lot of exports and orders awaiting shipment; thus, sales in the market remain good, with a tendency for prices to rise. However, as prices increase, downstream traders are less eager to stockpile supplies compared to before. It is expected that the trend in domestic urea prices will be one of caution in the near term, with slight upward fluctuations in some areas. In the later stage, special attention will be paid to the impact of environmental protection and related policies on the operation of urea production facilities at both upstream and downstream levels, as well as to the stockpiling activities of compound fertilizer manufacturers. In Shandong region, the ex-factory price for small and medium-sized particles is 1,690–1,720 yuan per ton; the prevailing transaction price is around 1,670–1,690 yuan per ton. In Linyi market, the transaction price is approximately 1,710–1,720 yuan per ton, while in Heze market it’s also around 1,710–1,720 yuan per ton, with prices remaining stable for now. In Hebei region, the ex-factory price for small particles is around 1,690–1,710 yuan per ton, with the prevailing transaction price at around 1,680–1,690 yuan per ton; some companies have raised their prices by 10 yuan per ton. In Henan region, the ex-factory price for small particles is 1,680–1,700 yuan per ton, with prices remaining stable. In Anhui region, the prevailing ex-factory price for small particles is around 1,740–1,770 yuan per ton, with prices stable. In Jiangsu region, the prevailing price for small and medium-sized particles is around 1,770 yuan per ton, while the actual transaction price is around 1,750–1,770 yuan per ton, with prices stable. In Shanxi region, the freight cost for transporting small and medium-sized particles is around 1,610–1,620 yuan per ton, while that for larger particles is around 1,600 yuan per ton; some companies have raised their prices by 10 yuan per ton. In Inner Mongolia region, the prevailing transaction price for small and medium-sized particles is around 1,460–1,520 yuan per ton, while the price for larger urea particles is around 1,550–1,570 yuan per ton; some manufacturers have raised their prices by 20–30 yuan per ton. In Hubei region, the prevailing price for small particles is 1,700–1,720 yuan per ton, with prices stable. In Shaanxi region, the local selling price for small and medium-sized particles is around 1,690 yuan per ton, while the price for shipments to other areas is around 1,650 yuan per ton; some companies have raised their prices by 10–20 yuan per ton. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,880–1,900 yuan per ton, with prices stable. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,600–1,810 yuan per ton, with prices stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,880–1,900 yuan per ton, with prices stable. In Xinjiang region, the ex-factory and transaction prices are around 1,360–1,450 yuan per ton, with prices stable. In Jilin region, the price for small urea particles is around 1,790–1,820 yuan per ton, with prices stable. In Heilongjiang region, the transaction price for small urea particles is around 1,720 yuan per ton, with prices stable. In Liaoning region, the freight cost for transporting small urea particles is around 1,620–1,720 yuan per ton, with prices negotiable and remaining stable. With sufficient inventory available at upstream factories, prices continue to rise. Traders who previously had goods at lower prices are gradually using them up and are starting to accept new prices from upstream suppliers. The operating rate of compound fertilizers in the North China market remains stable, while in the South China market, as the dates for gas supply restrictions and production shutdowns at enterprises in Sichuan become clearer, there is an increasing tendency among companies to stock up on supplies. Import markets such as Guangdong, Guangxi, and Fujian saw their prices rise as a result of increasing costs upstream. Overall, the enthusiasm for purchasing in the Southern Market is higher than that in the Northern Market. It is said that there may be another tender in India in late December, but at current prices, large-scale exports to that country are unlikely. Due to changes in supply and demand, prices are expected to remain strong and rise slightly in the short term.