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Urea price trends across China on February 19 Author/Source: Business Society Date: 2020-02-19 Clicks: 15 The domestic urea market remains stable overall. Demand from the agricultural sector for urea has slowed slightly, while demand from industrial sectors is recovering at a slow pace. Plywood factories are still mostly shut down, and the overall operating rate of compound fertilizer factories is low, resulting in limited demand for urea. It is expected that the domestic urea market will remain stagnant in the short term, with manufacturers adjusting their prices flexibly based on their own circumstances. Next, the focus will be on logistics and transportation as well as the resumption of operations in downstream industries. Hualu Hengsheng medium-sized particles are priced at 1700 (stable); Hebei Dongguang small-sized particles are at 1640 (stable); Henan Xinlianxin is at 1650 (stable); Shanxi Lanhua is at 1600–1620 (a 10% decrease); Jiangsu Linggu is at 1740–1750 (stable); Anhui Haoyuan is at 1710–1730 (a 30% increase); Inner Mongolia Boda is at 1500; Shaanxi Shanhua’s domestic sales price is 1680 (stable), while its external sales price is 1610 (stable); Xinjiang Yankuang is at 1350. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,650–1,720 yuan per ton; the typical transaction price ranges from 1,640–1,680 yuan per ton. In the Linyi area, the market price for such particles is 1,710–1,720 yuan per ton. In the Heze area, the price for small and medium-sized particles remains stable at around 1,700–1,720 yuan per ton. In the Hebei region, the ex-factory price for small particles is around 1,640–1,690 yuan per ton, with the typical transaction price being around 1,620–1,640 yuan per ton; this price remains stable as well. In the Henan region, the ex-factory price for small and medium-sized particles is 1,640–1,680 yuan per ton, with no changes in price. In the Anhui region, the typical ex-factory price for small particles is around 1,700–1,750 yuan per ton, and this price remains stable. In the Jiangsu region, the typical price for small and medium-sized particles is around 1,720–1,750 yuan per ton, with no changes. In the Shanxi region, the price for small particles sold externally is around 1,600–1,610 yuan per ton, and this price remains stable. In the Inner Mongolia region, the typical price for small and medium-sized particles sold externally is around 1,480–1,500 yuan per ton, with no changes. In the Shaanxi region, the local sales price for small and medium-sized particles is around 1,640–1,670 yuan per ton, while the price for products sold externally is 1,590 yuan per ton; both prices remain 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 no changes. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,750–1,800 yuan per ton, with no changes. In the Guangdong region, the typical wholesale price for small particles is around 1,850–1,930 yuan per ton, with no changes. In the Xinjiang region, the typical transaction price is around 1,350–1,370 yuan per ton, with no changes. 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-based price for small-grained urea in Liaoning is 1720–1770 yuan per ton, with the actual transaction price subject to negotiation. Prices remain stable in the East and North China markets, where agricultural demand remains the main driving force. Factories have a sufficient amount of goods ready for shipment, but new transactions are limited. Prices at the lower end remain steady. In the Northeast market, there is an increase in inquiries, and stockpiling is gradually starting. The southern markets remain stable overall, with traders focusing on using up existing inventory. The document issued by the National Development and Reform Commission has generated significant attention; provinces such as Henan have successively introduced detailed regulations in line with its provisions to support fertilizer manufacturers in carrying out the transportation of their products in an orderly manner. Overall, transportation conditions have improved, but in some areas where the pandemic impact is severe, there is still considerable pressure on shipping operations. Downstream industrial enterprises have gradually made arrangements; demand for compound fertilizers is expected to increase significantly next week, while the resumption of operations at plywood factories and similar facilities will continue to be delayed. The recovery of overall industrial demand and market order will have a significant impact on short-term market trends, and close attention remains necessary.