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Urea price trends across China on December 17 Author/Source: Yuege Agri-Materials Web Date: 2019-12-17 Clicks: 75 The national urea market remains weak; prices at some factories in the northwest and north China have dropped by 10–20 yuan per ton, with a generally bearish sentiment in the market. On the demand side, downstream industrial users are maintaining stable production levels, primarily to utilize the low-cost raw materials available from earlier periods. Sales revenue from the finished products produced by compound fertilizer factories has been poor, and rising prices of nitrogen fertilizers have had no significant impact on the prices of compound fertilizers, leading to a decrease in the factories’ willingness to stock up on goods. Due to the general pessimism regarding the market in January, traders and end-users are currently reducing their inventory levels in anticipation of opportunities to purchase goods at lower prices. It is expected that by the end of December, the export price will still be lower than the domestic price, and this could serve as a support level for prices in January. Overall, there is no significant decline in demand; market demand remains strong. In the short term, prices are expected to remain stable with little tendency for a sharp drop. Hualu Hengsheng’s medium-sized particles are priced at 1690 (stable), while large-sized particles cost 1840 (an increase of 20); Hebei Dongguang’s small-sized particles are priced at 1690 (a decrease of 20); Henan Xinlianxin’s products are priced at 1680 (a decrease of 20); Shanxi Fengxi’s products are priced at 1630 (stable); Jiangsu Linggu’s products are priced at 1770 (stable); Anhui Haoyuan’s products range from 1740 to 1760 (stable); Inner Mongolia Boda’s products are priced at 1530 (stable). Shaanxi Shanhua’s products are priced at 1696 for local sales and 1620 for external sales; Xinjiang Yankuang’s products are priced at 1355 (stable). 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 1,650–1,680 yuan per ton. In Linyi market, the transaction price is approximately 1,740 yuan per ton, while in Heze market it is 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 1,690–1,700 yuan per ton, with the prevailing transaction price at around 1,670–1,680 yuan per ton; prices remain stable. In Henan region, the ex-factory price for small particles is 1,680–1,720 yuan per ton, with some companies offering prices 10 yuan lower per ton. In Anhui region, the prevailing ex-factory price for small particles is around 1,740–1,780 yuan per ton; prices remain stable. 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 1,610–1,640 yuan per ton, while that for large particles is around 1,640–1,650 yuan per ton; prices remain stable. In Inner Mongolia region, the prevailing transaction price for small particles is around 1,500–1,540 yuan per ton, while the price for large particles is 1,590 yuan per ton; prices remain stable. In Hubei region, the prevailing price for small particles is 1,740–1,760 yuan per ton; prices remain 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 1,620 yuan per ton; prices remain stable. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,870–1,880 yuan per ton; prices remain stable. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,780–1,880 yuan per ton; prices remain stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,880–1,890 yuan per ton, with prices reduced by about 10 yuan per ton. In Xinjiang region, the ex-factory and transaction prices are around 1,360–1,450 yuan per ton; prices remain stable. In Jilin region, the price for small particles of urea is around 1,790–1,820 yuan per ton; prices remain stable. In Heilongjiang region, the transaction price for small particles of urea produced by local manufacturers is around 1,720 yuan per ton; prices remain stable. In Liaoning region, the transportation cost for small particles of urea is around 1,740–1,790 yuan per ton, with prices subject to negotiation; prices remain stable. The domestic urea market remains stable overall, with reduced trading activity. Urea manufacturers continue to ship orders placed earlier, but new orders are not performing well, and transaction volumes have slightly declined in certain areas. Currently, overall domestic demand is weak; there is no support for demand in the agricultural sector. Traders are stocking up a bit earlier, and sales at the downstream level are still mainly driven by purchases by industrial fertilizer producers and panel manufacturers. However, with continuous weather warnings for winter, industrial demand remains limited. It is expected that the domestic urea market will remain stagnant in the short term. There are rumors that India will issue new standards in the near future, and domestic manufacturers may be inclined to raise prices at that time; hence, attention will mainly be focused on India’s tender process.