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Urea price trends across China on February 26 Author/Source: Yuege Agri-Materials Network Date: 2020-02-26 Clicks: 5 The domestic urea market continues to show an upward trend; the trading atmosphere in various regions has improved significantly. Some manufacturers are seeing good demand for new orders, and inventory levels are gradually decreasing. Manufacturers have a strong inclination to raise prices. On the demand side, there is a need to apply top-dressing fertilizer to wheat; some traders and local purchasers are active in making purchases. Downstream compound fertilizer manufacturers have resumed operations at full capacity, leading to an increased demand for raw materials. Board manufacturing plants will gradually resume work as the epidemic control situation improves. Recently, to ensure the progress of spring plowing activities, **departments at all levels have introduced various favorable policies in the field of logistics, which has helped alleviate the shortage of agricultural supplies and made transportation smoother. The domestic urea market is expected to continue its upward trend in the short term. Hualu Hengsheng medium-grained product: 1720 (a rise of 10); Hebei Dongguang small-grained product: 1730 (a rise of 10); Henan Xinlianxin: 1720 (a rise of 20); Shanxi Fengxi: 1670 (a rise of 20); Jiangsu Linggu: 1820 (stable); Anhui Haoyuan: 1750–1770 (a rise of 20); Inner Mongolia Boda: 1550 (stable); Shaanxi Shanhua’s local sales price: 1710 (a rise of 30), while the external sales price is 1680 (a rise of 50); Xinjiang Yankuang: 1350 (stable). In the Shandong region, the ex-factory price for small and medium-sized particles is 1,740–1,770 yuan per ton; the typical transaction price is around 1,700–1,710 yuan per ton. In the Linyi area, the market price for such particles is 1,770–1,780 yuan per ton. In the Heze area, the purchase price for small and medium-sized particles ranges from 1,7460 to 1,770 yuan per ton, with some companies raising their prices by 10–50 yuan per ton. In the Hebei region, the ex-factory price for small particles is around 1,730–1,740 yuan per ton, while the typical transaction price is about 1,690 yuan per ton; some companies increase their prices by 20–30 yuan per ton. In the Henan region, the ex-factory price for small and medium-sized particles is 1,720–1,750 yuan per ton, with some companies raising their prices by 20–50 yuan per ton. In the Anhui region, the typical ex-factory price for small particles is around 1,740–1,780 yuan per ton, with some companies increasing their prices by 20 yuan per ton. In the Jiangsu region, the typical price for small and medium-sized particles is around 1,780–1,810 yuan per ton, with some companies raising their prices by 20 yuan per ton. In the Shanxi region, the price for small particles for external delivery is around 1,670 yuan per ton, with some companies increasing their prices by 20 yuan per ton. In the Inner Mongolia region, the typical price for small and medium-sized particles for external delivery is around 1,590–1,600 yuan per ton, with some companies raising their prices by 40–50 yuan per ton. In the Shaanxi region, the typical local sales price for small and medium-sized particles is 1,720 yuan per ton, with a price increase of 10 yuan per ton. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,900–1,920 yuan per ton, with urea prices rising by 20 yuan per ton. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,800–1,850 yuan per ton, with some companies raising their prices by 30 yuan per ton. In the Guangdong region, the typical wholesale price for small particles is around 1,880–1,900 yuan per ton, with prices remaining stable for now. In the Xinjiang region, the ex-factory and transaction prices are around 1,350–1,410 yuan per ton, with prices remaining stable. In the Jilin region, the transaction price for small particles and urea is around 1,750–1,790 yuan per ton. Prices remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,750–1,800 yuan per ton; prices remain stable as well. The freight-cost-based price for small-grained urea in Liaoning is 1,720–1,770 yuan per ton, with the actual transaction price subject to negotiation. In terms of futures, the main urea contract (UR005) opened at 1,801.0000 yuan on February 24th, and closed at 1,807.0000 yuan, representing an increase of 30.0000 yuan compared to the previous trading day, or a rise of 1.69%. The settlement price was 1,805.0000 yuan. The open interest of the main contract increased by 553 contracts, with a total of 92,544.0000 contracts traded during the day. The opening price of today’s main urea contract (UR005) was 1,799 yuan. The domestic urea market continues to show an upward trend; the focus of transactions in this market is shifting upwards further, logistics conditions are improving, and preparations for spring plowing are progressing. As a result, transactions in the agricultural urea market are becoming more active. Many compound fertilizer manufacturers are operating at full capacity, and industrial demand has recovered significantly. Overall, the atmosphere in the domestic urea market is very positive. Urea manufacturers are seeing smooth sales, and the market is expected to continue its positive trend in the short term. The market is mainly in a state of consolidation, with prices remaining low; factories have raised their prices today. In Shandong and Hebei, sales at premium prices were average today; industrial customers have significantly slowed down their purchases, while factories continue to rely mainly on road transportation to serve nearby agricultural customers. Currently, upstream inventory levels are roughly on par with the levels awaiting shipment, and customers who made purchases earlier have mainly focused on getting their orders shipped as soon as possible. The inventory at the Shanxi factory is being cleared at a relatively fast pace; shipments by road are progressing well, while it is more difficult to arrange shipments by rail at current prices. Due to the rapid price increase, there are significant differences in the cost of goods held by distributors, which has led to market prices being lower than the factory’s export prices. Downstream industrial demand is gradually recovering, but it is not yet sufficient to support the market. Overall, short-term prices are likely to remain range-bound.