Urea price trends across China on February 4

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Urea price trends across China on February 4th. Author/Source: Yuege Agri-Products Website. Date: 2020-02-04. Clicks: 120. The latest factory prices for urea; although there have been no significant changes in the prices of urea across the country, the industry has been greatly affected by the novel coronavirus pandemic, resulting in poor market liquidity. Due to insufficient production capacity and a slow recovery in demand, most urea plants currently have inventory built up, while a few have begun to reduce their production levels under the pressure of excess inventory. The resumption of operations by downstream industrial enterprises is delayed; on one hand, this is to prevent the spread of the pandemic, and on the other hand, the demand for finished products in these industries is also affected, along with difficulties in transporting raw materials and products. In the short term, resolving logistics issues will have a significant impact on both upstream and downstream parties; seeking cooperation between them is a common demand within the industry at present. Recently, due to the impact of the pandemic, domestic road freight logistics have been severely disrupted; urea manufacturers have faced difficulties in shipping their goods, resulting in a significant increase in inventory levels. On the demand side, agricultural needs have not yet been addressed; enterprises in the Linyi and Heze markets that produce boards and compound fertilizers have not resumed operations yet. On the supply side, as some companies face pressure on their inventory levels, production has declined. If logistics and transportation issues continue to affect the shipment of urea as well as the transport of raw material coal in the coming period, there will be an increasing number of plants that cease operations or reduce their production volume, resulting in a significant drop in urea production capacity. The domestic urea market is expected to remain weak in the short term, with logistics and transportation conditions being the main factors to watch going forward. In Shandong province, the ex-factory price for small and medium-sized particles is 1,630–1,690 yuan per ton, with the typical transaction price ranging from 1,600–1,620 yuan per ton. In Hebei province, the ex-factory price for small particles is around 1,660–1,690 yuan per ton, while the typical transaction price is about 1,620–1,630 yuan per ton. In Henan province, the ex-factory price for small and medium-sized particles is 1,640–1,680 yuan per ton, with prices remaining stable for now. In Anhui province, the typical ex-factory price for small particles is around 1,700–1,760 yuan per ton. In Jiangsu province, the typical ex-factory price for small and medium-sized particles is around 1,730–1,750 yuan per ton, with the typical transaction price ranging from 1,710–1,750 yuan per ton. In Shanxi province, the transportation cost for small and medium-sized particles is around 1,600 yuan per ton, while the cost for large particles is around 1,600–1,620 yuan per ton. In Inner Mongolia, the typical transaction price for small and medium-sized particles is around 1,490–1,520 yuan per ton, while the price for large particles is around 1,570–1,580 yuan per ton. In Shaanxi province, the local sales price for small and medium-sized particles is around 1,640 yuan per ton, while the price for shipments to other areas is around 1,590 yuan per ton. In Guangxi province, the typical wholesale price for small and medium-sized particles is around 1,850–1,860 yuan per ton. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,700–1,830 yuan per ton. In Guangdong province, the typical wholesale price for small particles is around 1,850–1,860 yuan per ton. In Xinjiang province, the ex-factory transaction price is around 1,360–1,410 yuan per ton. In Jilin province, the transaction price for small particles is around 1,750–1,790 yuan per ton. In the Heilongjiang region, the reference price for small-grained urea is 1,750–1,800 yuan per ton. In the Liaoning region, the freight cost for small-grained urea by road is 1,720–1,770 yuan per ton, with the actual transaction price subject to negotiation