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Urea price trends across China on February 14 Author/Source: Yuege Agri-Materials Network Date: 2020-02-14 Clicks: 129 The domestic urea market continues to show a steady upward trend. Recently, in some areas where logistics conditions have improved, the urea market has seen activity related to preparations for spring plowing; shipments for agricultural use by manufacturers have increased significantly, reducing inventory pressures, and some companies have continued to raise their prices. At present, downstream enterprises in the compound fertilizer and panel industries are resuming operations slowly, resulting in limited demand. On the supply side, urea manufacturers, under pressure from various factors such as raw material and finished product inventory, labor costs, and transportation issues, have recently halted operations or reduced their production levels in many cases. It is expected that the domestic urea market will remain stable in the short term, with only slight price increases in some areas. Going forward, attention will be focused on logistics and transportation as well as the resumption of operations in downstream industries. Domestic demand for urea in certain agricultural sectors has shown slight improvement, leading to higher quotes for new orders. The load on downstream industrial facilities remains low, logistics shipments are still restricted, and businesses adjust their strategies according to market conditions. Zhuochuang expects the urea market to remain in a state of consolidation in the near term, with attention paid to future logistics developments and the resumption of industrial activities. Hualu Hengsheng’s medium-sized particles are priced at 1670 (a rise of 20); Hebei Dongguang’s small-sized particles are priced at 1640 (a rise of 10); Henan Xinlianxin’s particles are priced at 1650 (stable); Shanxi Fengxi’s particles are priced at 1580 (stable); Jiangsu Linggu’s particles are priced at 1740–1750 (stable); Anhui Haoyuan’s particles are priced at 1670–1700 (stable); Inner Mongolia Boda has suspended its price announcements. Shaanxi Shenhua’s products are priced at 1670 for local sales and 1600 for external sales (a rise of 20). In the Shandong region, the ex-factory price for small and medium-sized particles is 1,630–1,700 yuan per ton; the typical transaction price ranges from 1,620–1,660 yuan per ton. In the Linyi region, the market price for such particles is 1,710–1,720 yuan per ton. In the Heze region, the purchase price for small and medium-sized particles is around 1,670–1,680 yuan per ton. Some companies have raised their prices by 10–20 yuan per ton. In the Hebei region, the ex-factory price for small particles is around 1,630–1,650 yuan per ton, while the typical transaction price is around 1,600–1,630 yuan per ton. Some companies have increased their prices by 10 yuan per ton. In the Henan region, the typical ex-factory price for small and medium-sized particles is 1,640–1,680 yuan per ton, with prices remaining stable for now. In the Anhui region, the typical ex-factory price for small particles is around 1,700–1,750 yuan per ton, again with stable prices. In the Jiangsu region, the typical price for small and medium-sized particles is around 1,710–1,750 yuan per ton; some companies have raised their prices by 10 yuan per ton. In the Shanxi region, the price for small particles for external distribution is around 1,610 yuan per ton, with prices remaining stable. In the Inner Mongolia region, the typical price for small and medium-sized particles for external distribution is around 1,480–1,500 yuan per ton, also with stable prices. In the Shaanxi region, 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 remaining stable. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,850–1,860 yuan per ton, with stable prices. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,750–1,800 yuan per ton, with stable prices. In the Guangdong region, the typical wholesale price for small particles is around 1,850–1,930 yuan per ton, with stable prices. In the Xinjiang region, the typical transaction price is around 1,360–1,410 yuan per ton, with stable prices. In the Jilin region, the price for small particles containing 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, but the nitrogen fertilizer market shows varying trends across different regions. In the winter wheat-growing areas of North China, a significant decrease in the supply of compound fertilizers compared to the previous year has led to an increased demand for nitrogen fertilizers, resulting in a wave of concentrated purchasing. In some factories in Hebei and Shandong, prices have risen by 30–50 yuan per ton in recent days. Large quantities of goods are arriving at the major ports and distribution centers in MERCOSUR, but market demand is still recovering slowly. The National Meteorological Center has issued a blue warning for heavy snow; many areas in North China will experience heavy snowfall from this afternoon until tomorrow. This is expected to disrupt regional transportation and delay the application of fertilizer for wheat growth. After the snowfall, agricultural demand is likely to increase. On the supply side, inventory pressures at upstream factories remain high; transportation conditions have improved slightly compared to before, but inventories have not yet begun to decline significantly. On the demand side, an increase in work resumption is expected next week, which will lead to an improvement in demand, while the preparation of fertilizers for spring planting will continue to progress from south to north. Whether it can provide support for the industry remains dependent on capacity and the progress of resumption of operations by downstream industrial clients.