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Urea price trends across China on December 18 Author/Source: Business Society Date: 2019-12-18 Clicks: 42 The domestic urea market is operating in a stable but weak manner. Companies continue to fulfill orders received earlier. As export orders related to labeling have been largely completed, and downstream factories have slowed down their purchasing pace, demand in China remains weak. As a result, urea manufacturers are having difficulty securing new orders at favorable prices, with prices in some areas seeing a slight decline. 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. The domestic urea market is operating in a stable manner, with weak domestic demand; in some markets, there has been a slight increase in the room for negotiation among buyers and sellers. However, the industry is watching recent bidding trends in India; manufacturers and intermediaries are inclined to hold prices and wait, so it is expected that domestic urea prices will see only a limited decline in the short term. We will continue to monitor international tender announcements and middlemen’s intentions to restock in the near future. Hualu Hengsheng’s medium-sized particles are priced at 1690 (stable), while large-sized particles cost 1840 (stable). Hebei Dongguang’s small-sized particles are priced at 1690 (stable); Henan Xinlianxin’s products are priced at 1680 (stable). Shanxi Fengxi’s products are priced at 1600 (a 30% decrease). Jiangsu Linggu’s products are priced at 1750 (a 20% decrease). 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 1666 for local sales (a 30% decrease), and 1590 for external sales (also a 30% decrease). 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 1,730–1,740 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 1,690–1,700 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 prices remaining stable. In Anhui region, the prevailing ex-factory price for small particles is around 1,740–1,780 yuan per ton, with prices remaining stable. In Jiangsu region, the prevailing price for small and medium-sized particles is around 1,750–1,770 yuan per ton; the actual transaction price is around 1,750 yuan per ton, with some companies offering prices 20 yuan per ton lower. In Shanxi region, the transportation cost for small and medium-sized particles is around 1,580–1,630 yuan per ton, while for larger particles it’s around 1,640–1,650 yuan per ton. Some companies are offering prices 10–20 yuan per ton lower. In Inner Mongolia region, the prevailing transaction price for small and medium-sized particles is around 1,500–1,540 yuan per ton, while the price for larger urea particles is around 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, with prices remaining 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 1,620 yuan per ton; prices remain stable. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,850 yuan per ton, with a decrease of 10–20 yuan per ton. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,780–1,880 yuan per ton, with prices remaining stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,870–1,880 yuan per ton, with a decrease of around 10 yuan per ton. In Xinjiang region, the transaction price is 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 1,740–1,790 yuan per ton, with prices negotiable; prices remain stable. The demand from upstream factories is average, but since there isn’t a large inventory buildup, the degree of price reduction is limited. On the demand side, industrial users such as downstream plywood factories and power plants are operating at a stable pace. Fertilizer factories face considerable pressure to collect payments for their finished products; they focus on selling existing inventory, and are cautious about making new purchases. Due to traders’ eagerness to sell their stock, the market’s prevailing prices are inverted compared to the factory prices. After the previous printing and marking process at the port was completed on December 19, some factories will shift their focus to the domestic market. Stocking up for the Northeast market has gradually begun, but purchases are slowing down given the current market conditions. In the short term, factories in the northwestern region, which are primarily focused on the Southern Market, are under considerable pressure; as a whole, the market is likely to experience slight downward trends. (Yuege Agricultural Supplies Network