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Urea price trends across China on February 27 Author/Source: Yuege Agri-Materials Web Date: 2020-02-27 Clicks: 58 The domestic urea market is generally operating in a stable to strong manner; however, due to differences in demand in various regions and in manufacturers’ inventory levels, prices have seen slight declines in some areas. Recently, as temperatures have risen, agricultural demand has increased in some areas, leading to stronger purchasing intentions on the downstream side and an improvement in sales volumes for manufacturers. In the industrial sector, companies that produce compound fertilizers and plywood are making slow progress in resuming production, operating mainly in line with market conditions. Today, some manufacturers in Shandong, Hebei, Jiangsu, Sichuan and other regions have raised their prices by 10–40 yuan; it is expected that the domestic urea market will remain stable with only slight fluctuations in the short term. Some manufacturers in Shandong, the Two Rivers region, Shanxi, Sichuan and other places have raised their prices by 10–40 yuan per ton. The mainstream price in Shandong is 1,850–1,880 yuan per ton, in Henan it is 1,870–1,880 yuan per ton, and in Hebei it is 1,860–1,900 yuan per ton. The trading atmosphere in the market has improved compared to earlier periods; with the support of spring plowing, some markets may continue to see slight increases. The market in Shandong is dominated by local players; urea manufacturers are issuing new orders with prices increased by 10–20 yuan. The standard price for small and medium-sized granules is 1860–1880 yuan per ton, while the actual transaction price is around 1850 yuan per ton. The price for large granules is 1930–1940 yuan per ton. In Linyi, the price is 1900–1910 yuan per ton, and in Heze it is 1870–1890 yuan per ton. The urea market in Hebei continues to rise, with the mainstream ex-factory prices rising to 1,850–1,900 yuan per ton. The price of large-grained urea remains stable at 1,930 yuan per ton. Urea manufacturers in Henan have seen modest price increases; driven by demand from Shandong and local agricultural sectors, new orders are improving, with lower-grade urea seeing a price increase of 10 yuan. The mainstream price for small-grained urea is 1,870–1,880 yuan per ton, while the price of large-grained urea remains stable at 1,880 yuan per ton. The ex-factory price of small-grained urea produced by Hubei Sanning Chemical is around 1,880–1,900 yuan per ton; the price is subject to negotiation based on individual orders. The ex-factory price of small-grained urea produced by Yunnan Yuntianhua is around 2,200 yuan per ton, while Anhui HongSifang offers its small-grained urea at 1,880 yuan per ton, with considerable room for negotiation regarding the final price. A portion of the supply is used for internal use, with a small amount exported. In the Shandong region, the standard factory price for small and medium-sized urea granules is 1,860–1,950 yuan per ton; the purchase price in the Linyi market is around 1,910 yuan per ton. In the Heze market, the purchase price is approximately 1,880–1,890 yuan per ton, with some manufacturers raising their prices by 10–20 yuan per ton. In the Hebei region, the transaction price for small urea granules is around 1,850–1,900 yuan per ton, while large granules cost about 1,930 yuan per ton. Some manufacturers there have increased their prices by 20–40 yuan per ton. In the Henan region, the standard factory price for small urea granules remains at 1,840–1,880 yuan per ton. In the Anhui region, the standard factory price for small urea granules is around 1,880–1,930 yuan per ton, with some manufacturers lowering their prices by 20 yuan per ton. In the Jiangsu region, the standard price for small and medium-sized urea granules is around 1,920–1,930 yuan per ton, with some manufacturers raising their prices by 10 yuan per ton. In the Shanxi region, the transaction price for both small and large urea granules by road transport is around 1,780 yuan per ton, with no changes so far. In the Inner Mongolia region, the standard factory price for small and medium-sized urea granules is 1,600–1,650 yuan per ton, also stable. In the Hubei region, the standard transaction price for small urea granules is around 1,880–1,900 yuan per ton, stable as well. In the Shaanxi region, the factory price for local sales is around 1,820 yuan per ton, while the price for shipments to other areas is around 1,770 yuan per ton. Prices are determined through negotiation, and there are no changes currently. In the Guangxi region, the standard wholesale price for both small and large urea granules is 2,020 yuan per ton, stable. In the Sichuan region, the standard factory price for small and medium-sized urea granules is 1,940–2,020 yuan per ton, with some manufacturers raising their prices by 20–40 yuan per ton. In the Guangdong region, the standard wholesale price for small urea granules is 2,020–2,040 yuan per ton, with a price increase of 20 yuan per ton. In the Xinjiang region, the factory price is around 1,550–1,650 yuan per ton, stable. In the Jilin region, the factory price for urea is around 2,100 yuan per ton, stable. In the Heilongjiang region, the price for goods imported from other regions is around 1,970–2,000 yuan per ton, stable as well. In the Liaoning region, the factory price for small urea granules by road transport is 1,930–1,950 yuan per ton, stable. The domestic urea market is seeing a slight upward trend, with slightly improved transaction conditions. With the rise in temperatures, market shipments have improved. There has been an increase in agricultural demand in the North China and East China regions, leading to a noticeable rise in market orders. Some companies have stopped accepting orders or have continued to raise prices. Industrial demand has not shown significant recovery yet, and compound fertilizer manufacturers still face considerable pressure due to high inventory levels of finished products. Although production rates are gradually returning to normal, there is also some inventory of urea available. Plywood factories are starting to stock up on fertilizers, but market recovery during the first month of the year remains limited, and demand does not provide strong support for the market. The market is expected to maintain an upward trend throughout the week.