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Urea price trends across China on February 17 Author/Source: Yuege Agri-Materials Website Date: 2020-02-17 Clicks: 7 Heavy snowfall in the northern regions will lead to delays in the application of fertilizers for winter wheat and affect transportation. As the winter wheat planting areas in North China have begun operations one after another, market prices rose in the previous two days; currently, with prices falling, traders are becoming more cautious about taking deliveries. Sales at regional factories in the radiation agriculture sector continue to show improvement, while sales at factories focused on industrial applications remain weak. Currently, inventory levels in upstream factories remain high, and there is still a shortage of transportation capacity, especially for inter-provincial shipments which continue to be hindered. The production activities in various regions next week will have a significant impact on the market, so close attention is required. The ex-factory price for small and medium-sized particles in Shandong region is 1,650–1,710 yuan per ton, while the typical transaction price ranges from 1,630–1,670 yuan per ton. In Linyi region, the market price for such particles is 1,710–1,720 yuan per ton. In the Heze area, the reference price for small to medium-sized particles is 1,700–1,720 yuan per ton; some companies have raised their prices by 10–30 yuan per ton. In the Hebei area, the factory price for small particles is around 1,630–1,650 yuan per ton, while the prevailing transaction price is around 1,600–1,630 yuan per ton, with prices remaining stable for now. In the Henan area, the prevailing factory price for small to medium-sized particles is 1,640–1,680 yuan per ton, again with prices stable. In the Anhui area, the prevailing factory price for small particles is around 1,700–1,750 yuan per ton, with prices stable. In the Jiangsu area, the prevailing price for small to medium-sized particles is around 1,710–1,750 yuan per ton, with prices stable. In the Shanxi area, the price for small particles for external distribution is around 1,600–1,610 yuan per ton; a few companies have raised their prices by 20 yuan per ton. In the Inner Mongolia area, the prevailing price for small to medium-sized particles for external distribution is around 1,480–1,500 yuan per ton, with prices stable. In the Shaanxi area, the prevailing local sales price for small to 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 the Guangxi area, the prevailing wholesale price for small to medium-sized particles is around 1,850–1,860 yuan per ton, with prices stable. In the Sichuan area, the factory price for small to medium-sized particles is around 1,750–1,800 yuan per ton, with prices stable. In the Guangdong area, the prevailing wholesale price for small particles is around 1,850–1,930 yuan per ton, with prices stable. In the Xinjiang area, the prevailing transaction price is around 1,350–1,370 yuan per ton, with prices stable. In the Jilin area, 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. As logistics and transportation gradually recover, agricultural sales in some areas are improving, and manufacturers are able to sell enough products to meet agricultural demand, resulting in reduced inventory pressure. However, industrial demand is still growing slowly at present. On the supply side, urea manufacturers, under pressure from various factors such as raw material and finished product inventory, labor shortages, and transportation issues, have recently shut down some of their plants or reduced their production capacity. 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. In some areas of Shandong, the price increased by another 10 yuan per ton; in a few cases, large-grained products saw a rise of 40 yuan per ton. In Shanxi, prices increased by 10–20 yuan per ton in certain areas. With spring plowing approaching in China, some agricultural areas in North and East China are preparing fertilizers, leading to an increased demand from farmers. There has been some improvement in new orders and shipments in certain parts of the market. However, due to the impact of the pandemic, there is a shortage of transport vehicles and rising freight costs, which continues to severely restrict shipments. The overall market activity remains sluggish, and most companies still face pressure from high inventory levels. It is expected that urea prices in China will remain volatile for now, with slightly stronger price movements in areas with high agricultural demand. In the later stage, focus will be placed on the progress of epidemic prevention and control, as well as the situation regarding fertilizer preparation in the agricultural sector.