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Urea price trends across China on February 12 Author/Source: Yuege Agri-Products Website Date: 2020-02-12 Clicks: 95 The urea market is operating in a stable manner. As transportation in the market gradually resumes, agricultural purchases in some areas have seen a slight improvement. Manufacturers are processing new orders as needed. Regarding industrial demand, the downstream market is expected to recover slowly after the Lantern Festival, with the recovery pace possibly being slower than in previous years. 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. It is expected that the domestic urea market will remain stable in the short term; going forward, attention will be focused on logistics and transportation as well as the resumption of operations in downstream industries. Hualu Hengsheng’s medium-sized particles are priced at 1620 (stable); Hebei Dongguang’s small-sized particles are priced at 1620 (a 20% decrease); Henan Xinlianxin’s particles are priced at 1650 (stable); Shanxi Fengxi’s particles are priced at 1580 (stable); Jiangsu Linggu’s particles are priced between 1740 and 1750 (stable); Anhui Haoyuan’s particles are priced between 1710 and 1730 (stable). Inner Mongolia Boda has suspended its price announcements; Shaanxi Shanhua’s products are priced at 1670 for local sales and 1580 for external sales (both prices stable). 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; some companies offer prices 10 yuan per ton higher. 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 remaining stable for now. In Henan province, the ex-factory price for small and medium-sized particles is 1,640–1,680 yuan per ton, again with prices stable. In Anhui province, the typical ex-factory price for small particles is around 1,700–1,750 yuan per ton; some companies offer prices 20 yuan per ton lower. In Jiangsu province, the typical price for small and medium-sized particles is around 1,700–1,750 yuan per ton, with prices stable. 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 typical local sales price for small and medium-sized particles is 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. Prices remain stable; urea manufacturers still face difficulties in shipping, but deliveries can be arranged flexibly based on actual orders, and the price can be negotiated. Shipping pressures are increasing day by day; due to limited shipping capacity, merchants are storing only a portion of their goods. Zhuochuang expects the urea market to remain in a weak and stable state in the near term, with attention paid to the progress of industrial operations resuming downstream as well as the recovery of transportation capacity. The demand in the agricultural markets of regions such as Shandong and Hebei is increasing, factory orders are on the rise, and as policies are gradually implemented, the pressure related to the transportation of fertilizers in these areas is decreasing. At present, some factories in Shandong and Hebei are able to achieve a balance between production and transportation, preventing the current inventory levels from continuing to rise. The situation in Henan is slightly less favorable, with improvements in transportation capacity coming more slowly. At the factory in Shanxi, prices have seen a slight decline since yesterday, but trading volume has increased. The Northeast market is gradually coming online, with orders arriving one after another. Due to the implementation of various accountability systems aimed at curbing the spread of the epidemic in different regions, industrial operations have resumed at a slow pace; however, it is expected that they will start resuming gradually in the near future. Overall, market order is gradually returning to normal, but whether it can return to normal in the short term still depends on the development trend of the pandemic.