Urea price trends across China on February 5

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Urea price trends across China on February 5 Author/Source: Yuege Agri-Materials Network Date: 2020-02-05 Clicks: 84 The domestic urea market remains stable, with a situation of available supply but no demand persisting in the market. 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; attention will mainly be focused on logistics and transportation conditions going forward. The prevailing ex-factory prices for small-grain urea in the Shandong region remain stable: Ruixing Chemical quotes 1,650 yuan per ton, with no changes in its price; Mingshui Chemical also quotes 1,650 yuan per ton, with no changes as well. Overall, the ex-plant prices of urea in Shandong region remain stable today, with actual transaction prices determined through negotiation. The enthusiasm for purchasing at the downstream end is moderate, and prices of urea are expected to remain stable at low levels in the coming period. In the Shandong region, the ex-factory price for small-grained urea is 1,630–1,690 yuan per ton, while the typical transaction price ranges from 1,600–1,620 yuan per ton; these prices remain stable for now. The urea production facilities of Shandong Jinmei Mingshui Chemical Group Co., Ltd. are operating normally, with a daily production capacity of around 1,200 tons. The price of small-grained urea is 1,650 yuan per ton, and this price also remains stable; the actual transaction price is determined through negotiation. In Hebei province, the ex-factory price of small particles is around 1,660–1,690 yuan per ton; the prevailing transaction price is around 1,620–1,630 yuan per ton. Some companies have reduced their prices by 10 yuan per ton. In Henan province, the ex-factory price of small to medium-sized particles ranges from 1,640–1,680 yuan per ton, with prices remaining stable for now. In Anhui province, the ex-factory price of small particles is around 1,700–1,760 yuan per ton, also with stable prices. In Jiangsu province, the prevailing price for small to medium-sized particles is around 1,730–1,750 yuan per ton, while the actual transaction price is around 1,710–1,750 yuan per ton, with prices remaining stable. In Shanxi province, the price of small particles for external shipments is around 1,550–1,570 yuan per ton, with stable prices. In Inner Mongolia, the prevailing transaction price for small to medium-sized particles is around 1,500 yuan per ton, with stable prices. In Shaanxi province, the local sales price for small to medium-sized particles is around 1,640–1,670 yuan per ton, while the price for external shipments is around 1,590 yuan per ton, with stable prices. In Guangxi province, the prevailing wholesale price for small to medium-sized particles is around 1,850–1,860 yuan per ton, with stable prices. In Sichuan province, the ex-factory price of small to medium-sized particles is around 1,750–1,800 yuan per ton, with stable prices. In Guangdong province, the prevailing wholesale price for small particles is around 1,850–1,860 yuan per ton, with stable prices. In Xinjiang province, the transaction price at the factory is around 1,360–1,410 yuan per ton, with stable prices. In Jilin province, the price of small particle urea is around 1,750–1,790 yuan per ton. Prices remain stable. The transaction price for small-grained urea in Heilongjiang is around 1750–1800 yuan per ton; prices remain stable as well. The freight cost for small-grained urea in Liaoning is 1720–1770 yuan per ton, with the actual transaction price subject to negotiation. Prices of urea remain largely unchanged; a few suppliers offer delivery by rail, and those with good order volumes maintain firm prices. Today, there have been significant increases in road freight costs as well as costs for receiving goods at railway stations, due to limited transport capacity and a shortage of loading and unloading workers; it is expected that this trend will continue to spread. Many factories in Anhui, Henan, Hebei, Shanxi, and Shandong have begun to reduce production or plan to do so due to inventory pressures. The daily production is expected to drop by 15,000–20,000 tons compared to the period before the festival. Due to issues such as coal supply, packaging bag availability, and rising costs, pressure on upstream companies continues to increase. However, supported by high costs, urea prices are likely to remain stable within a narrow range in the short term.