Urea price trends across China on February 20

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Urea price trends across China on February 20 Author/Source: Business Society Date: 2020-02-20 Clicks: 18 The domestic urea market is operating steadily, with logistics and transportation conditions improving gradually. Inventory levels among those companies that continue to ship goods have slightly decreased. Currently, many areas are in the phase of purchasing fertilizer for agricultural use. In the industrial sector, demand from downstream industries is recovering slowly; plywood factories remain mostly shut down, and the overall operation rate of compound fertilizer factories is also low, resulting in limited trading activity in the market. 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. In Shandong, prices dropped by 10 yuan per ton in some areas; in Anhui, prices rose by 10 yuan per ton in a few places. In Shanxi, prices increased by 10–20 yuan per ton in certain areas, while in Sichuan, prices rose by 10–20 yuan per ton in some regions. In Yunnan, prices increased by 50 yuan per ton in a few cases. At present, in some domestic markets, agricultural procurement is underway; demand remains strong, and market transportation conditions have improved significantly with lower freight costs. Shipping operations in most markets are functioning adequately. However, pandemic control measures remain strict, resulting in limited production activities by downstream enterprises and continued weak demand. Additionally, urea manufacturers still have ample inventory, which means that new orders in the overall market are at below average levels. It is expected that domestic urea prices will remain stable for now, with only slight fluctuations occurring in certain areas. In the later stage, focus will be placed on the progress of epidemic prevention and control, as well as agricultural fertilizer preparation in the market and the resumption of operations by downstream enterprises. Hualu Hengsheng medium-sized particles are priced at 1680 (a 20% reduction); Hebei Dongguang small-sized particles are priced at 1640 (stable); Henan Xinlianxin’s products are priced at 1650 (stable); Shanxi Fengxi’s products are priced at 1600 (stable); Jiangsu Linggu’s products are priced at 1740–1750 (stable); Anhui Haoyuan’s products are priced at 1710–1730 (stable); Inner Mongolia Boda’s products are priced at 1500 (stable). Shaanxi Shanhua’s products are priced at 1680 for local sales and 1610 for external sales (stable). Xinjiang Yankuang’s products are priced at 1350 (stable). In Shandong province, 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 Linyi, the market price for such particles is 1,710–1,720 yuan per ton. In Heze, the price remains stable at around 1,700–1,720 yuan per ton. In Hebei, 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; prices remain stable. In Henan, the ex-factory price for small and medium-sized particles is 1,640–1,680 yuan per ton, with prices remaining stable. In Anhui, the typical ex-factory price for small particles is around 1,700–1,750 yuan per ton, with prices remaining stable. In Jiangsu, the typical price for small and medium-sized particles is around 1,720–1,750 yuan per ton, with prices remaining stable. In Shanxi, the price for small particles for external distribution is around 1,600–1,610 yuan per ton, with prices remaining 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 remaining stable. In Shaanxi, 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 around 1,590 yuan per ton, with prices remaining stable. In Guangxi, the typical wholesale price for small and medium-sized particles is around 1,850–1,860 yuan per ton, with prices remaining stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,750–1,800 yuan per ton, with prices remaining stable. In Guangdong, the typical wholesale price for small particles is around 1,850–1,930 yuan per ton, with prices remaining stable. In Xinjiang, the typical transaction price is around 1,350–1,370 yuan per ton, with prices remaining stable. In Jilin, 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. In regions such as the Two Rivers area, Shandong, Jiangsu, and Anhui, road transport is the main mode of delivery. Thanks to reduced freight costs and effective measures for obtaining permits for transporting agricultural supplies, transportation capacity has improved significantly. Additionally, the increase in available supply sources has led to a slowdown in procurement by agricultural users, thereby reducing concerns about a shortage of fertilizers. In terms of industrial demand, some compound fertilizer factories have resumed operations, but to prevent a rapid accumulation of workers, they continue to operate at a low capacity. A large volume of goods has arrived in the Guangzhou market, and distribution within that market has already begun. This is expected to put pressure on prices, leading to some supplies from Shaanxi and Shanxi being diverted to markets such as Guangxi. The Northeast market has been gradually launching, but prices have not risen significantly. Currently, the inventory levels in upstream factories are still at a high level and need to be reduced, so the sales pressure has not yet eased. Prices are expected to remain volatile in the short term, pending the preparation for spring plowing and the recovery in industrial demand.