Thread Content
Urea price trends across China on February 11 Author/Source: Yuege Agri-Materials Network Date: 2020-02-11 Clicks: 124 The domestic urea market is operating in a stable but sluggish manner; trading activity is weak, and new orders from manufacturers are few. Market transportation is gradually recovering, but manufacturers’ ability to ship goods remains significantly affected by logistical constraints. On the supply side, the overall operating rate of domestic urea manufacturers is currently around 57%, with a daily production volume of about 110,000 tons, which represents a decline compared to last week. On the demand side, the downstream market is set to recover slowly after the Lantern Festival, and the pace of recovery may be slightly slower than in previous years. It is expected that the domestic urea market will remain stable in the short term; attention will mainly focus on logistics and transportation as well as the resumption of operations in downstream industries. Hebei sees a stabilization at 10 yuan/ton; in Anhui and Henan, prices drop by 10 yuan/ton in some areas, while in Shaanxi prices rise by 10 yuan/ton in certain regions. Qinghai experiences a drop of 20 yuan/ton, and in Sichuan, prices fall by 20–30 yuan/ton in some areas. As the pandemic continues to spread, strict controls are in place on the movement of people and goods, which continues to severely restrict market shipments and deliveries. In addition, the production of industrial switches and agricultural fertilizers in various markets has been delayed, resulting in relatively low overall demand and a subdued trading atmosphere in these markets. Meanwhile, domestic manufacturers are facing increasing pressure due to dwindling raw material stocks, as well as rising pressures on product inventories; there is a strong tendency to wait and see what will happen. It is expected that the domestic urea market will remain stable, with only minor adjustments taking place in some areas. In the later stage, focus will be placed on the progress of epidemic prevention and control, as well as the operational status of upstream and downstream enterprises. 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 Linyi region, the market price for such particles is 1,680–1,690 yuan per ton. In Heze region, the purchase price for small and medium-sized particles is around 1,670–1,680 yuan per ton, with prices remaining stable for now. In Hebei province, the ex-factory price for small particles is around 1,650–1,660 yuan per ton, while the typical transaction price is around 1,600–1,630 yuan per ton, with prices stable as well. In Henan province, the ex-factory price for small and medium-sized particles is 1,640–1,680 yuan per ton, with prices stable. In Anhui province, the ex-factory price for small particles is around 1,700–1,760 yuan per ton, with prices stable. In Jiangsu province, the typical price for small and medium-sized particles is around 1,700–1,750 yuan per ton, with a slight decrease in price. In Shanxi province, the price for small particles for external distribution is around 1,550–1,570 yuan per ton, with prices stable. In Inner Mongolia, the typical price for small and medium-sized particles for external distribution is around 1,480–1,500 yuan per ton, with prices stable. In Shaanxi province, the local sales price for small and medium-sized particles is around 1,640–1,670 yuan per ton, while the price for external distribution is 1,590 yuan per ton, with prices stable. In Guangxi province, the typical wholesale price for small and medium-sized particles is around 1,850–1,860 yuan per ton, with prices stable. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,750–1,800 yuan per ton, with prices stable. In Guangdong province, the typical wholesale price for small particles is around 1,850–1,930 yuan per ton, with prices stable. In Xinjiang province, the typical transaction price is around 1,360–1,410 yuan per ton, with prices stable. In Jilin province, the price for small particles 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. Thanks to the joint efforts of various ministries and local authorities, the transportation situation in some provinces has improved to some extent and is showing a positive trend. On the demand side, overall market demand is recovering slowly; downstream industrial users are still delaying the resumption of operations, resulting in low market activity. In regions where the use of agricultural fertilizers has been initiated, such as Jiangsu, Anhui, Shandong, and the Two Rivers areas, sales performance is slightly better. Regarding the resumption of operations, various regions remain cautious about allowing enterprises to restart work, imposing strict approval processes, with preventing the spread of the pandemic remaining the top priority. Overall, inventory pressure at upstream factories continues to rise, and it will take time to resolve transportation issues and supply-demand imbalances.