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Urea price trends across China on December 6 Author/Source: Yuege Agri Supplies Network Date: 2019-12-06 Clicks: 35 After continuous increases, urea prices are now waiting for the market to adjust. Agricultural demand drives purchases according to market conditions, while industrial users buy in quantities when prices are low. Some companies are gathering goods for export, and manufacturers have sufficient orders to support their operations; most manufacturers do not face any sales pressure at present. On the supply side, recently urea manufacturers have experienced frequent temporary shutdowns due to environmental regulations and safety inspections; the operating rate of these manufacturers remains around 60%, with a daily production volume of about 120,000 tons, so there is not much supply pressure. It is expected that the domestic urea market will remain stable with only slight fluctuations 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. Hualu Hengsheng’s medium-sized particles are priced at 1690 (stable), while large-sized particles cost 1820 (stable). Hebei Dongguang’s small-sized particles are priced at 1680 (stable). Henan Xinlianxin’s products are priced at 1700 (stable); Shanxi Fengxi’s products are priced at 1630 (stable). Jiangsu Linggu’s products are priced at 1770 (stable). Anhui Haoyuan’s products range from 1730 to 1750 (stable). Inner Mongolia Boda’s products are priced at 1500 (stable). Shaanxi Shanhua’s products are priced between 1650 and 1690 (stable). Xinjiang Yankuang’s products are priced at 1330, with a price increase of 20. 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 1,730 yuan per ton, while in Heze market it’s around 1,710–1,720 yuan per ton. Prices remain stable. 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; prices remain stable. 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 remaining 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; prices remain stable. In Shanxi region, the transportation cost for small and medium-sized particles is around 1,610–1,620 yuan per ton, while for larger particles it’s around 1,600 yuan per ton; prices remain stable. 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 1,570 yuan per ton; prices remain stable. In Hubei region, the prevailing price for small particles is 1,700–1,720 yuan per ton, with prices remaining stable. In Shaanxi region, the local sales 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; prices remain stable. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,880–1,900 yuan per ton, with prices remaining 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 remaining stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,880–1,900 yuan per ton, with prices remaining stable. 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 around 1,720 yuan per ton, with prices remaining stable. In Liaoning region, the transportation cost for small urea particles is around 1,620–1,720 yuan per ton, with prices subject to negotiation; prices remain stable. The urea market across the country continues to show stability. There is no pressure on sales at the upstream factories. The orders from the Inner Mongolia factory have been processed this week, while those from the Shanxi factory will last for another 10–15 days. Social inventory in the North China region is declining, and sales at the factories are performing well. As the previously available low-priced goods were gradually consumed, market prices started to rise, and companies began to accept the factory’s latest quotes. Prices are expected to remain strong in the short term. As gas-producing companies gradually reduce their output, the current supply is somewhat insufficient. International market prices show no sign of improvement at present; there are rumors that India will issue another tender at the end of December, which will lead to a significant decline in the enthusiasm of Chinese suppliers to participate. At present, the Northeast market has not yet seen large-scale procurement activities; inventory levels are low, so it remains a focus of attention in the short term.