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Urea price trends across China on December 10 Author/Source: Yuege Agri Supplies Network Date: 2019-12-10 Clicks: 43 Due to air pollution, industrial activity in the areas surrounding Beijing has declined, resulting in a halt in transactions in that region. Today, the enthusiasm for purchasing in MERCOSUR has declined slightly; there is a certain caution regarding higher prices, with traders and end-users focusing on securing supplies at the lower prices from earlier periods. There is still a large amount of inventory waiting to be shipped upstream, keeping prices firm. Overall, market enthusiasm has declined, with the market waiting to see how the pricing of benchmark companies evolves as well as when key industrial markets will resume operations. However, due to the reduction in supply, the market is likely to remain stable in the short term. In Shandong, prices dropped by 10 yuan per ton in some cases; in Henan and Shanxi, prices increased by 10–30 yuan per ton in some areas. In Hebei, prices rose by 20 yuan per ton in certain places, while in Inner Mongolia they increased by 20 yuan per ton in some cases. In Sichuan, prices increased by 30 yuan per ton in some instances. 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 1700 (an increase of 20); Henan Xinlianxin’s particles are priced at 1710 (an increase of 10). Shanxi Fengxi has suspended orders. Jiangsu Linggu’s particles are priced at 1770 (stable), Anhui Haoyuan’s particles range from 1740 to 1760 (stable). Inner Mongolia Boda’s particles are priced at 1500 (stable). Shaanxi Shanhua’s particles are priced at 1640–1690 (a decrease of 10). Xinjiang Yankuang’s particles are priced at 1330 (stable). At present, domestic compound fertilizer manufacturers and those involved in winter top-dressing of wheat are making modest stockpiles; demand is showing some improvement, and the supply of goods at low prices in the market is gradually decreasing. The atmosphere surrounding new orders is improving, and manufacturers still have the intention to raise prices. However, due to severe pollution conditions and environmental warnings in North China and East China, downstream plywood factories and some chemical companies have reduced their production levels. It is expected that the price of urea in China will remain volatile in the near term, with only slight increases in certain areas. In the later stage, special attention will be paid to the impact of environmental protection and related policies on the operation of urea-related production facilities at both upstream and downstream levels, as well as the stockpiling practices of compound fertilizer manufacturers. In Shandong region, the ex-factory price for small and medium-sized particles is 1,690–1,730 yuan per ton; the prevailing transaction price is around 1,670–1,690 yuan per ton. In Linyi market, the transaction price is approximately 1,730–1,740 yuan per ton, while in Heze market it’s around 1,720–1,730 yuan per ton. Prices remain stable for now. In Hebei region, the ex-factory price for small particles is around 1,690–1,720 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 1,680–1,720 yuan per ton, with some companies raising their prices by 10 yuan per ton. In Anhui region, the prevailing ex-factory price for small particles is around 1,740–1,780 yuan per ton, with prices remaining stable for now. In Jiangsu region, the prevailing price for small and medium-sized particles is around 1,770–1,780 yuan per ton, while the actual transaction price is around 1,750–1,780 yuan per ton; prices remain stable. In Shanxi region, the transportation cost for small and medium-sized particles is around 1,630–1,640 yuan per ton, while that for large particles is around 1,640–1,650 yuan per ton, with prices increased by 10–20 yuan per ton. In Inner Mongolia region, the prevailing transaction price for small particles is around 1,500–1,520 yuan per ton, while the price for large particles is 1,570 yuan per ton; prices remain stable. In Hubei region, the prevailing price for small particles is 1,740–1,760 yuan per ton, with a price increase of 20 yuan per ton. In Shaanxi region, the local sales price for small 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 particles is around 1,890–1,910 yuan per ton, with prices remaining stable. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,780–1,880 yuan per ton, with some companies raising their prices by 30 yuan per ton. In Guangdong region, the prevailing wholesale price for small particles is around 1,890–1,910 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 particles of Jilin urea is around 1,790–1,820 yuan per ton, with prices remaining stable. In Heilongjiang region, the transaction price for small particles of urea produced by local manufacturers is around 1,720 yuan per ton, with prices remaining stable. In Liaoning region, the transportation cost for small particles of urea is around 1,620–1,720 yuan per ton, with prices negotiable; prices remain stable. Due to orange and red air pollution warnings in many areas in recent days, industrial production in some regions has slightly decreased, leading to more cautious purchasing behavior among suppliers, who tend to buy only when prices are low. Business owners place preliminary orders; some are sent out for export through ports, and 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 fluctuations in the short term; going forward, attention will be focused on the purchasing behavior of compound fertilizer manufacturers and changes in the operating rates of urea producers.